LIVE FUTURES REPORT 28/12: Copper, ali head for a strong end to 2017 as rallies continue

Base metals prices on the London Metal Exchange continued their strong performances during early morning trading on Thursday December 28, with gains across the board.

Aluminium and copper look set to finish 2017 in strong fashion, with both setting new-year highs. The three-month copper price has hit highs of $7,312 per tonne this morning – climbing above $7,300 per tonne for the first time since January 2014.

“The markets are certainly living up to the much expected volatility with copper hitting a three-year high, and aluminium racing up through $2,200 per tonne,” Malcolm Freeman of Kingdom Futures said.

“[The metals are] no doubt taking confidence from broadly positive US data, this just leaves the question of where do we go from here? … It strikes me that the chances for an equal and opposite reaction as we enter 2017 are very large indeed.”

The three-month aluminium price also continued its rally, up a further $21 per tonne this morning after breaking through the $2,200 barrier on Wednesday.

“The increase [in LME prices] is supported by trade conflicts between the United States and China, especially in the aluminium trading area, which is presumed to help lower LME stock levels,” said Galaxy Futures.

Across the rest of the complex, nickel was previous lagging behind the rally but has now picked up pace, climbing $150 per tonne. Meanwhile, zinc followed $23 per tonne higher, with lead and tin edging up slightly on support from a weakening dollar.

Base metal prices

  • The three-month copper price was up $50 to $7,280 per tonne. Stocks increased a net 750 tonnes to 202,850 tones, with 2,950 tonnes freshly cancelled.
  • Aluminium’s three-month price was up $21 to $2,273 per tonne. Inventories 925 tonnes to 1,103,500 tonnes.
  • The three-month nickel price increased $150 to $12,260 per tonne. Stocks dropped 1,422 tonnes to 370,836 tonnes.
  • Zinc’s three-month price was up $23 to $3,295 per tonne. Inventories decreased 1,750 tonnes to 183,525 tonnes.
  • Lead’s three-month price was $5 higher at $2,544 per tonne. Stocks increased 500 tonnes to 192,250 tonnes.
  • The three-month tin price was at $19,700 per tonne, an increase of $5. Stocks dipped 175 tonnes to 2,220 tonnes.

Currency moves and data releases

  • The dollar index was down 0.32% to 92.71.
  • In other commodities, the Brent crude oil spot price was up 0.46% to 66.18.
  • In data, the US Conference Board Consumer Confidence Index was 122.1, lower than the projected 128.2 and the pending home sales month on month change for November showed an increase of 0.2%, better than the expected decrease of 0.4%.
  • In data today, US unemployment claims and goods trade balance numbers are due out. Natural gas storage and crude oil inventory figures are also expected today.
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