Fund managers maintaining bearish stance The challenging macro-economic backdrop constituting ongoing trade wars, weak economic data points and the uncertain demand outlook for the aluminium market easily justifies why its price action remains weak, which corresponds with the bearish net speculative funds positioning. LME fund managers have maintained their bearish stance for the third consecutive...Read More
Aluminium Buyers had a chance to push the LME three-month aluminium price higher on Monday August 19, but sellers were able to defend near the 100 DMA at $1,815 per tonne. Although the price has worked itself higher since the August low at $1,745 per tonne, the 100 DMA will not be the easiest overhead resistance to crack and we have seen such an attempt one too many times this year. More ofte...Read More
Market recap Copper has traded sideways recently, undermined by a poor risk sentiment despite the recent slight de-escalation of US-China trade tensions, evident in several events which took place last week including (1) the tariff delay on some consumer goods by the US, (2) an extension of “the temporary general license” granted to Huawei Technologies in the US, (3) a positive phone cal...Read More
Port Pirie smelter to be out for another 12 weeks Nyrstar announced that production at Port Pirie will be halted for 12 weeks. The smelter produced 160,000 tonnes of lead in 2018, on a pro-rata basis that suggests 36,000 tonnes could be lost, on top of the 30,000 tonnes lost in June and July when production was first suspended. With the loss of refined lead coming just before the so-called battery...Read More
Stock rise compounds price correction pressure Nickel prices are consolidating around $16,000 per tonne after peaking at $16,690 per tonne earlier this month. The rumors that the export ban for nickel ore in Indonesia is likely to be brought forward and announced this year or in January 2020, has provided strong support to the market, but is this fully priced in now? But the tighter spreads that h...Read More
Tin prices pressured by a massive LME inflow The 3-month LME tin price tumbled to its lowest since June 2016 at $16,255 per tonne on Monday August 19, after a 1.6% sell-off last week. The resurgence of fresh shorting (reflected in the rise in open interest) was triggered by a massive net inflow of 1,580 tonnes (+33%) on August 15, the largest since December 2008. The metal was delivered into Port...Read More
Rebounds capped by macro factors Zinc prices are consolidating at the start of this week after stalling above $2,300 per tonne last week when economic data raised fresh concerns that the global economy was heading for recession, particularly in export-dominant economies such as China and Germany, while the US Treasury yield curve inverted once again. More demand woes Chinese authorities announced...Read More
ACCESS RESTRICTEDTo read the rest of this analysis please take a free sample or subscribeFREE SampleReceive a free sample of market analysis and price forecasts.Free SampleSUBSCRIBEReceive unlimited access to all current and archive content going back to 2008 including downloadable pricing data and forecasts.Plus download the latest issue as soon as it’s published.SubscribeRead More
Click here to download the Selected Demand IndicatorsACCESS RESTRICTEDTo read the rest of this analysis please take a free sample or subscribeFREE SampleReceive a free sample of market analysis and price forecasts.Free SampleSUBSCRIBEReceive unlimited access to all current and archive content going back to 2008 including downloadable pricing data and forecasts.Plus download the lat...Read More
Concerns about weak economic data, geopolitical headwinds and the risk of a slow slide toward global recession are dominating market sentiment; short-term relief may come from more concerted central bank stimulus, but the real cure will only likely come from a new trade deal.Equities and bond markets will no doubt react positively to easier monetary policy, but the metals are unlikely to be hoodwi...Read More
U.S. equity index futures were higher this morning. S&P 500 futures were up 3 points in pre-opening trade. Home Depot gained $4.15 to $212.10 after reporting higher than consensus second quarter earnings. McCormick dropped $1.62 to $166.94 after JP Morgan downgraded the stock to Underweight from Neutral.Baidu jumped $8.78 to $113.00 after reporting higher than consensus quarterly sales and ear...Read More
Here are five Fastmarkets MB stories you might have missed on Friday August 16 that are worth another look.An oversupply that has been branded the leading cause of the persistent price weakness seen in China's vanadium market during the first half of 2019 will likely continue to act as a headwind for the rest of the year, market sources told Fastmarkets.Chinese domestic battery-grade lithium...Read More
Prices in most of the global markets for steel billet went unchanged in the week ended Friday August 16, partly because of a lull for an Islamic holiday, while weak demand for billet in China reduced the prices for the semi-finished material in that region.Most market participants in the Middle East and North Africa, as well as in Southeast Asia, were out of the market for several days for the Eid...Read More
Turkey's military pension fund, OYAK, has reached a provisional agreement to buy steelmaker British Steel, OYAK said on Friday August 16. OYAK is the biggest shareholder of Turkey's largest steel producer, Erdemir Group, and this agreement is a step toward in its goal to become a regional leader in steel sector, OYAK said. British Steel entered into compulsory liquidation in May 2019 and rece...Read More
The Eurasian Economic Commission (EEC) will impose a quota for hot-rolled flat steel imports to members of the Eurasian Economic Union (EEU) for one year starting from December 1, 2019.The EEU countries are Russia, Belarus, Armenia, Kazakhstan and Kyrgyzstan. The total quota for the EEU bloc will be 1.33 million tonnes, the EEC announced last week.Volumes exceeding the quota will be a subject to a...Read More
Domestic prices for hollow steel sections remained unchanged across Europe this week, with trading largely on hold during the traditional summer break, sources told Fastmarkets on Wednesday August 14.Fastmarkets' weekly price assessment for steel sections (medium), domestic, delivered Northern Europe, stayed at ?,?615-630 ($688-705) per tonne on Wednesday.During August, many workers take...Read More
Prices in most of the global markets for steel billet went unchanged in the week ended Friday August 16, partly because of a lull for an Islamic holiday, while weak demand for billet in China reduced the prices for the semi-finished material in that region.Most market participants in the Middle East and North Africa, as well as in Southeast Asia, were out of the market for several days for the Eid...Read More
Here are five Fastmarkets MB stories you might have missed on Friday August 16 that are worth another look.An oversupply that has been branded the leading cause of the persistent price weakness seen in China's vanadium market during the first half of 2019 will likely continue to act as a headwind for the rest of the year, market sources told Fastmarkets.Chinese domestic battery-grade lithium...Read More
The dream of building a new world-class copper-gold mine in Pakistan in an area bordering Afghanistan and Iran has been dashed, for now at least. The saga of Tethyan Copper Co's (TCC) efforts to develop the Reko Diq mine found resolution last week with an International Centre for Settlement of Investment Disputes (ICSID) ruling in favor of TCC following a dispute that has rumbled on for years.TCC,...Read More
The London Metal Exchange has just finished its trial to calculate nickel prices using a volume weighted average price (VWAP) method on the exchange's electronic trading platform. If early indications are anything to go by, metals market participants did not embrace this method of price discovery in the way some had anticipated. For three months since Monday March 18, closing prices for nickel car...Read More