LIVE FUTURES REPORT 26/12: SHFE aluminium down amid concerns over rising inventories; copper up as stocks fall

The most-traded SHFE February aluminium contract price decreased 180 yuan – or 1.2% – to 14,535 yuan ($2,222) per tonne as of 10.00am Shanghai time, as market participants fretted over the likelihood of excessively high aluminium inventories in the first half of 2018.

“Chinese domestic aluminium stocks will remain above 1.8 million tonnes in the dirst quarter of 2018. Even in the second quarter – the traditionally high consumption season – inventories are unlikely to fall much,” China’s Minmetals Jingyi Futures said.

“In addition, the anti-dumping measures from the United States have influenced China’s aluminium exports, which is also negative for reducing the levels of stocks,” according to Galaxy futures daily report.

The most-traded February copper contract on the SHFE stood at 54,760 yuan per tonne, up 60 yuan – or 0.1% – from the previous session’s close.

“Supply of scrap copper remains tight, which adds to the demand for refined copper and that is making [refined copper] stocks fall,” according to China’s Minmetals Jingyi Futures.

During the week ended Friday December 22, SHFE copper stocks fell by 1,918 tonnes, or 1.3%, over the previous week to 140,211 tonnes.

Lead and nickel down, zinc and tin up

• The SHFE February lead contract price fell by 105 yuan to 19,020 yuan per tonne, down 0.5% compared with its previous closing price.
• “Demand in the physical market is weak, and that has also influenced the futures market,” according to a lead trader in Shanghai.
• The SHFE May nickel contract price decreased 230 yuan, or 0.2%, to 94,830 yuan per tonne.
• The SHFE February zinc contract price was slightly up 125 yuan, or 0.5%, to 25,425 yuan per tonne.
• The SHFE January tin contract price gained 590 yuan, or 0.4%, to 138,790 yuan per tonne.

Currency moves and data releases

• The dollar index was up by 0.02% at 93.26 as of 10.46am Shanghai time.
• In equities, the Shanghai Composite was up 0.03% to 3,281.53.
• In data out today, US S&P composite-20 HPI and Richmond manufacturing Index numbers are due later.