NORTH AMERICAN MORNING BRIEF 06/12: Base metals regroup after Tuesday bloodbath; China waste thresholds impact on copper scrap; base metal premiums

Key news and price moves to get you off to a good start during the North American morning on Wednesday December 6.

The base metal complex has paused for breath in morning trading on the London Metal Exchange, after concerns over Chinese credit liquidity triggered heavy selling yesterday.

Copper’s LME collapse yesterday was the largest one day decline [in percentage terms] since May 7 2015, Marex’s Alastair Munro noted in a morning note.

The LME’s three-month copper contract traded over 40,000 lots yesterday making it the third busiest day of the year.

Today the copper price is up $47 per tonne against Tueday’s 5pm close.

Aluminium, nickel and zinc continue to shed value; the latter has recovered somewhat after breaking through a key resistance level of $3,100 per tonne earlier in the day.

“The market seems concerned about slower growth in China and while that view is held then prices may well fall further, but we would view this as leading to a better buying opportunity,” Metal Bulletin Senior Analyst Will Adams said in his morning note.

LME prices as of 11.12am UK time.


Metal Bulletin publishes live exchange price coverage which can be viewed here

In News:

China’s waste thresholds plan could have massive impact on copper scrap market in 2018 - industry consultant Michael Lion said.

Glencore will lose its zinc metal offtake from Nyrstar’s Clarksville smelter at the end of 2018, with Trafigura taking the tonnage.

Aluminium premiums in Asia are set to rise after a major consumer locked in first quarter supply with a 9% gain on present levels.

Weekly premium wraps:

Nickel - European premiums at six year highs

Copper - Premiums unchanged with focus on long term agreements

Aluminium - European and Asian premiums tick higher

Zinc & Lead - Shanghai zinc premiums soften to 4 month low

What to read next
Following a six-week consultation period, Fastmarkets can confirm it will amend the calculation method for all the average functions on the Fastmarkets platform from Wednesday March 1, 2023.
Consolidation, the recycling of electric vehicle batteries, US steel exports and the benefits of sustainable steelmaking were key talking points at Fastmarkets’ Scrap & Steel 2023 conference in Dallas in January
Green shoots of increased demand will emerge in US ferrous markets courtesy of the Biden administration’s trillion-dollar infrastructure package in 2023, Schnitzer’s executive vice president and chief strategy officer Richard Peach said at Fastmarkets’ Steel and Scrap Conference 2023 in Dallas, Texas
US special bar quality steel prices rose in January in line with rising scrap and alloy costs, according to market participants
European metal industry association Eurometaux has called on the European Commission to follow the lead shown by the Inflation Reduction Act and deliver a “powerful” policy to support the industry in the EU while it tries to keep up with the move to a new generation of energy markets
The fallout from Russia’s invasion of Ukraine is changing global trade flows for bauxite, with Brazilian material once again flowing into China and with the introduction of export restrictions elsewhere likely to influence availability through 2023
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed