May 2012

SHFE vs LME arbitrage: copper, aluminium, zinc

Arbitrage for copper, aluminium and zinc imported into China*

CLOSE TO CLOSE: Copper prices close at five-month lows as hopes fade for Chinese stimulus, Spanish rescue

Copper prices closed down 2.7% on a close-to-close basis on Wednesday May 30 as hopes for a wide-ranging Chinese stimulus programme faded, alongside those for a government-backed rescue of Spain’s banking sector.

BIR CONVENTION: Tough times ahead for Europe's secondary aluminium market

The European secondary aluminium industry is facing a crisis as material shortages reign, and more and more companies are faced with stoppages and cutbacks.

LME BILLET REPORT: Prices fall for second straight day

The London Metal Exchange’s official three-month steel billet prices fell for a second consecutive day to $425/435 per tonne on Wednesday May 30, from $435/445 on May 29.

LORD COPPER: LME sale demands a tough decision

The billion-pound price-tag placed on the LME should act as a warning sign to the exchange's members, warns Lord Copper.

Base metals fall in officials after China cools stimulus talk

Base metals fell heavily from their opening prices in official trading on the London Metal Exchange on Wednesday May 30, after China said it had no plans to implement stimulus measures on the scale seen in 2008.

European copper market to remain tight, premiums may rally as back eases

As the backwardation in the London Metal Exchange copper market eases, at a regional level, the availability of metal will remain tight in Europe, leaving room for premiums to rise, sources told Metal Bulletin.

IRON ORE DERIVATIVES WRAP: OTC prices edge lower with good volumes

The OTC iron ore market saw good volumes on Wednesday May 30, brokers told Metal Bulletin.

Chinese smelters, falling prices squash copper backwardation, but threat remains

The backwardation in London Metal Exchange copper spreads is at its lowest point since mid-April, but the tightness may persist until exchange stocks rise sufficiently to protect physical and speculative shorts from a second squeeze, sources told Metal Bulletin.

Base metals prices slump as China shuns large stimulus package

Base metals prices took a dive on the Shanghai Futures Exchange on Wednesday May 30, after news that China has ruled out a stimulus on the scale of its 2008 plan.