Base metals prices – with the exception of copper – were higher during London Metal Exchange morning trading on Tuesday March 21.
“Generally, the metals on the LME have rebounded strongly in recent weeks but they seem to lack the buying power to absorb the overhead selling, which suggests range-bound trading,” Metal Bulletin analyst William Adams said.
“With the second quarter approaching, which is a seasonally stronger time for economic activity, we would expect prices to remain at least well supported,” he added.
Copper prices hit one-week low
• The three-month copper price recently traded at $5,832.50 per tonne, down $47.50 on the previous close.
• “Copper prices took a hit overnight, as the labour union members are back in talks with BHP Billiton’s Escondida [mine] in Chile,” a trader said.
• Earlier, it slid to a one-week low of $5,781 per tonne. More than 6,000 lots have changed hands on LMEselect so far.
• As well as the supply disruptions in copper caused by strikes and export restrictions, severe flooding in Peru is also disrupting mining and transport.
• Still, Freeport-McMoRan’s Grasberg mine in Indonesia resumed production of copper concentrates today, ending a stoppage that lasted more than a month.
• In warehouse inventory data, LME copper stocks declined a net 3,125 tonnes to 329,850 tonnes while cancelled warrants were down 4,225 tonnes to 149,525 tonnes.
• The global refined copper market posted a 50,000-tonne deficit for 2016, the International Copper Study Group (ICSG) said in a monthly report on Monday March 20.
Tin price jumps up by $100/t, others see modest rises
• The three-month aluminium price was up $5.50 at $1,927.50 per tonne. Stocks were down 10,825 tonnes to 1,975,050 tonnes and cancelled warrants increased 54,350 tonnes to 828,350 tonnes.
• The three-month nickel price climbed $30 to $10,195 per tonne. Stocks fell 876 tonnes to 381,948 tonnes.
• The INSG estimates that the global nickel market was in a small deficit of 1,130 tonnes in January 2017 (compared with a surplus of 2,680 tonnes in January 2016) after recording a deficit of 41,520 tonnes in the whole of 2016.
• The INSG expects a deficit of 66,000 tonnes this year amid growing demand from the stainless steel sector. But the fluctuations in visible stocks so far this year lead us to believe that the supply/demand balance is not tightening much.
• The three-month zinc was $15.50 higher at $2,879.50 per tonne. Inventories climbed 3,750 tonnes to 379,425 tonnes.
• The three-month lead price edged up $8 to $2,282 per tonne. Stocks fell 400 tonnes to 190,025 tonnes.
• The three-month tin price was $100 higher at $20,450 per tonne. Stocks were down 260 tonnes to 3,965 tonnes.
Currency moves and data releases
• The US dollar index was last weaker at 99.96.
• On the economic agenda there is a host of UK data on prices, including CPI and PPI, plus the latest on the public sector borrowing requirement and CBI industrial order expectations.
• As well, there is a European Ecofin meeting. Meanwhile, Bank of England governor Mark Carney and US Federal Open Market Committee member William Dudley are speaking today, and there is data on US current accounts and China’s leading indicators.
Fastmarket