Market and product
Metal prices mostly steady; await non-farm payrolls
Investment-based business and fresh fund buying for the new quarter sent metals prices to multi-week and month highs, said traders.
The copper pricxe rose to its highest since late-February, while zinc jumped to a fresh 16-month peak. Aluminium finally broke out of a stale range to hit its strongest since mid-August last year, lead touched its highest for nearly six weeks, nickel a five-week high and tin a two-week peak.
The moves took place after late-morning July traded option declarations, traders added, as prices had been hemmed in, with positive US employment reports lighting a torch under prices as well.
The private-sector ADP report showed that 281,000 jobs were created last month, against a forecast 207,000, setting the scene for today's keynote June non-farm payrolls report, the week's focal release.Together with the non-farm payrolls will be the release of unemployment rates, which is expected to stay at 6.3 percent. The US trade balance for May will be out as well.
Yesterday also saw Fed Chair Janet Yellen delivering an address to the IMF. She opined that she currently sees some “pockets of increased risk-taking” but no need to change monetary policy stance to address financial stability concerns.
With Friday being Independence Day holiday in the US, trade volumes will probably be thin and price movements could be choppy for the rest of the week – “a disjointed week, owing to quarter-end on Monday and the July 4th holiday in the US on Friday, are also likely to be additional factors helping keep participants on the sidelines,” said analyst Leon Westgate from Standard Bank.
Copper prices cleared the $7,100 level to hit their highest since February 24 on systems-driven speculative buying. Business was seen up to $7,145 this morning, with prices now at $7,125 per tonne, flat at Wednesday’s kerb close.
The aluminium price was able to maintain above key resistance $1,900 but lost $9 overnight to the current $1,917 per tonne.
In others, the lead price is $4 higher at $2,210, sister metal zinc is now at $2,253, a $5 gain overnight.
The nickel price continue to rally after trading $500 higher on Wednesday. The metal is now at $19,751, some $126 higher than yesterday’s $19,625 even though stocks increased 138 tonnes to 305,394 tonnes. Tin saw some pullback after taking some support from major producer PT Timah restricting exports this month, citing low prices. The market is now at $22,900, $125 lower than Wednesday’s closing at $23,025.
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