EUROPEAN MORNING BRIEF 14/02: SHFE base metals broadly higher; global copper premiums; zinc supply issues

Good morning from Metal Bulletin’s office in Shanghai as we bring you the latest news and pricing stories on Wednesday February 14.

Base prices on the Shanghai Futures Exchange rose during Asian morning trading on Wednesday, the last trading day before the Lunar New Year break.

Check Metal Bulletin's live futures report here.

LME snapshot at 02.00 am London time
Latest three-month LME Prices
Price ($ per tonne)  Change since yesterday's close ($)
Copper 6,999 11
Aluminium 2,144.5 5.5
Lead 2,557.5 -3.5
Zinc 3,465.5 -4.5
Tin 21,585 85
Nickel 13,505 55

SHFE snapshot at 10.00 am Shanghai time
Most-traded SHFE contracts
Price (yuan per tonne)  Change since yesterday's close (yuan)
Copper (April) 52,630 490
Aluminium (April) 14,395 15
Zinc (April) 26,535 305
Lead (March) 19,280 265
Tin (May) 148,770 1,970
Nickel (May) 102,860 1,990

Changjiang spot snapshot on February 14
Range (yuan per tonne)  Change (yuan)
Copper  52,240-52,280 570
Aluminium 14,010-14,050 -120
Zinc 26,430-27,230 420
Lead 19,150-19,350 200
Tin  147,500-149,000 1,500
Nickel  100,200-100,230 -85

Aluminium premiums in the United States and parts of Europe rose over the past week, while those in Asia were unchanged ahead of the Lunar New Year holidays in the region. Check Metal Bulletin's latest global aluminium wrap here.

Copper price premiums became firmer in Shanghai and Europe over the past week when 51,050 tonnes of cathode material were delivered to the London Metal Exchange, illustrating the growing disparity between the paper and physical markets. 

A lull in the amount of zinc that is expected to come online starting next year could result in global supply issues, according to the International Lead and Zinc Study Group (ILZSG) at the International Zinc Association conference in Carlsbad, in the US state of California.

And staying with zinc, world zinc mine output is expected to accelerate well ahead of demand for the second half of this year, tipping the balance in the market, an executive at physical merchant Concord Resources said.

South Korea’s Public Procurement Service has awarded two 1,000-tonne tenders for good western and non-good western aluminium at premiums market participants consider to be slightly low against expectations of higher premiums in the second quarter.

A slowdown in secondary aluminium scrap flows in the United States, combined with persistent trucking issues, prompted some consumers to continue increasing certain smelter-grade scrap prices.

Susan Zou

susan.zou@metalbulletinasia.com

Published

Susan Zou

February 14, 2018

05:00 GMT

Shanghai