metals were mixed in LME premarket trading on Friday, extending a week of
volatile trading that started on “Black Monday”, with copper and nickel back
below $5,100 and $10,000 respectively.
choppiness is likely – today is the last trading day of the month because of
Monday’s bank holiday in the UK.
metals are continuing in volatile trading ranges and I expect to see much the
same for end-of-month positioning. Spread tightness is a feature as shorts have
covered of late,” a trader said.
base metals dropped to fresh multi-year lows this week after the meltdown in
Chinese equities triggered fears that the Chinese economy was slowing more than
People Bank of China
stepped in on Tuesday and again on Wednesday, announcing stimulus measures in a
bid to stem the fears. As the week progressed, a return to strength for
equities helped underpin metals prices.
composite index closed at 3,232.349, up 4.82 percent and building on Thursday’s
uptick – still, they ended the week down more than eight percent.
data, the US
goods trade balance, the core PCE price index, personal spending, personal
income, revised UoM consumer sentiment and revised UoM inflation expectations
the metals, copper at $5,078 was down $62 on Thursday’s close. Around 8,000
lots have changed hands on Select so far. The recent spate of weak prices has
meant that the arbitrage window between the SHFE and the LME has opened, which
in turn has seen an increase of cancellations in Asia as material is moved to Shanghai.
cancelled warrants rose a net 3,900 tonnes to 56,225 tonnes, with increases
predominantly in Singapore
and Port Klang as well as Gwangyang and Busan.
spreads, the benchmark cash/threes was last at a backwardation of $33, while
there are also backwardations in the September, October and November dates. LME
data continues to show there is one large warrant holder at 50-79 percent
across all three reported positions.
is back under $10,000, slipping $205 to $9,855. The cash/threes has seen a
backwardation bid at $35. Stocks were up 474 tonnes at 255,166 tonnes and
cancelled warrants increased 450 tonnes to 163,950 tonnes.
though there are warrants in abundance, many traders are trying to get hold of
material, some for consumption but many for financing purposes,” Triland noted.
at $1,565 was up $5 after stock decreased 7,550 tonnes to 3,276,075 tonnes.
Stocks have fallen more than 44,000 tonnes this week, a similar figure to last
was down $6.50 at $1,671.50 although inventories slipped 1,725 tonnes to
187,400 tonnes while zinc at $1,779 was up $27.
yesterday’s large increase in cancellations in New Orleans, lea’s nearby
spreads have tightened – cash/threes was at slight contango of $1.50. This
morning, stocks and cancelled warrants were both down 2,000 tonnes at 522,875
tonnes and 149,675 tonnes respectively.
at $13,800 was $90 lower but its spreads remain backwardated – cash/threes was
last at $100. Stocks dropped 380 tonnes to 6,980 tonnes and cancelled warrants
fell 350 tonnes to 2,170 tonnes.
cobalt and molybdenum were, neglected with no changes to stocks.
Edited by SHMET