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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