May 2019

Widening LME aluminium contango prompts fresh stock cancellations

The swing back into contango in the nearby aluminium forward curve on the London Metal Exchange triggered the cancellation of more than 90,000 tonnes of aluminium in LME-bonded warehouses this week.

LIVE FUTURES REPORT 17/05: LME base metals lower amid US dollar gains

Base metals prices on the London Metal Exchange were mostly lower at the close of trading on Friday May 17, with broad strength in the US dollar index pressuring commodity prices while trade tensions continue to deter investment.

SHFE STOCKS REPORT 17/05: Lead inventories spike by 15%, rest of complex post marginal falls

Lead stocks held in Shanghai Futures Exchange-approved warehouses leapt by approximately 15% week on week on Friday May 17 due to weak demand.

IRON ORE DAILY: Seaborne prices exceed $100 per tonne for first time since May 2014

Physical iron ore markets continued to strengthen on Friday May 17 with the seaborne price breaching $100 per tonne cfr China for the first time in five years, amid a bullish performance by futures.

CHINA REBAR: Trading thin after early-week buying spree

China’s rebar prices rose further on Friday May 17 on gains in the futures market, but trading activity has fallen to moderate rates with most buyers having procured enough materials earlier in the week.

CHINA HRC: Weaker yuan, domestic price drop boost export trading activity

China’s export prices for hot-rolled coil edged up on Friday May 17, with trading activity in this segment said to have picked up this week.

COKING COAL DAILY: Lower fob Australia offer emerges on platform

The seaborne coking coal market was mostly stable on Friday May 17, though a lower fob Australia offer emerged on trading platform Global Coal.

FOCUS: LME nickel spreads move to widest backwardations in five years

The London Metal Exchange nickel cash/three-month spread has flipped to its widest backwardation since January 2015 while nickel stocks hit a seven-year low on Friday May 17.

LIVE FUTURES REPORT 17/05: LME Al ignores 45kt cancelation in poor morning trading

Aluminium’s three-month price on the London Metal Exchange declined during morning trading on Friday May 17, falling by 0.3% and shrugging off just under 45,000 tonnes of freshly canceled material from LME-registered warehouses in Asia.

MORNING VIEW: LME base metals prices mostly weaker while cross winds cloud picture

The firmer tone of recent days has subsided this morning, Friday May 17, with some talk out of China that they are in no hurry to resume trade talks no doubt weighing on sentiment.