Fastmarkets.com
Copper, aluminium recover from lows but Hurricane Sandy hurts liquidity
Edited by : AL CIRCLE
4 min read
Base metals were firmer in premarket trading on the LME on Tuesday but volumes remain thin while the US East Coast struggles with the impact of Hurricane Sandy.
Copper and aluminium recovered from near-two-month lows set in the previous session, with analysts ascribing the recovery to dip buying.
"We are still some ways from the summer time lows so there is clearly scope for further price erosion in the short term, but we think selective consumer buying will now provide some support," RBC Capital Markets said. "We still maintain a stimulus/election-led rally is due before year-end."
The New York Stock Exchange will remain shut today - its first multi-day closure due to weather since 1888 - with bond markets also set to remain closed. While CME Group's premises in New York City must remain evacuated, its electronic trading platforms will be active, it said.
The 900-mile wide storm made landfall at about 20:00 EST with wind speeds of up to 80mph. At least 13 people are reported to have died
The closely watched US non-farm payrolls report that was due for release on for may be delayed - Hurricane Sandy has shuttered government offices in Washington, DC, and disrupted efforts to compile employment data, the Bureau of Labor Statistics said.
Elsewhere, the Bank of Japan delivered on expectations by expanding its asset purchasing programme, this time to 66 trillion yen ($830 billion). Meanwhile, China injected the highest ever amount of cash into its banking system in one day at 395 billion yuan ($63 billion).
Today's eurozone data painted a bleak picture of the region's economy. The Spanish flash GDP estimate for the second quarter came in at -0.3 percent, indicating contraction but better than the forecast -0.4 percent.
The German unemployment change for September came in at 20,000, above a predicted 10,000, while the eurozone retail PMI for October at 45.3 came in below the previous reading of 47.1.
UK CBI realised sales and an Italian bond auction are due later, while ECB president Mario Draghi is speaking in Frankfurt. US data includes house prices and consumer confidence.
In equity markets, the FTSE 100 is higher at 2,495, with the DAX also gaining ground to 7,254. In currencies, the euro regained some strength against the dollar, rising to 1.2952 from earlier sub-1.29 levels, with the dollar index lower at 79.96.
In wider commodity markets, spot gold is higher at $1,713.86 per ounce and Brent crude oil also firmer at $109.58 per barrel.
COPPER, ALUMINIUM OFF TWO-MONTH LOWS; VLISSINGEN ALUMINIUM STOCKS JUMP
Copper was last at $7,753 per tonne, up $54 on Monday's close, having fallen as low as $7,670 yesterday. Stocks were little changed, with a net inflow of just 75 tonnes. Gwangyang received 500 tonnes, while 250 tonnes left St Louis. Cancelled warrants fell 150 tonnes to 41,125 tonnes.
Aluminium, which also set a near-two-month low at $1,886 yesterday, recovered somewhat to $1,911, up $14. Inventories increased 32,450 tonnes to 5,083,150 tonnes, with the Vlissingen total up 26,450 tonnes. Cancelled warrants rose 8,050 tonnes to 1,736,500 tonnes.
"According to figures published by Chinese data provider Shanghai Metals Market (SMM), commercial aluminium stocks in China have all but doubled since the start of the year," Commerzbank said in a note.
Lead was last at $2,037, up $30. Stocks fell 1,900 tonnes, with 1,500 tonnes leaving Johor, and cancelled warrants rose 23,525 tonnes to 130,275 tonnes.
Nickel climbed back above the $16,000 mark this morning, gaining $105 to $16,075. Stocks increased 786 tonnes to 129,720 tonnes and cancelled warrants are 276 tonnes lower at 12,200 tonnes.
Tin is straddling $20,000 - it was last at $19,985, up $430. Inventories increased 100 tonnes to 11,850 tonnes, with Singapore receiving 125 tonnes. Cancelled warrants dipped 25 tonnes to 4,765 tonnes.
Zinc was last at $1,855.75, up $30.75 or about 1.5 percent. Stocks fell 3,050 tonnes to 1,171,275 tonnes, with 3,100 tonnes leaving New Orleans. Cancelled warrants rose 3,125 tonnes to 360,025 tonnes.
Steel billet was last quoted at $325/375, with stocks dipping 1,560 tonnes to 106,405 tonnes. In the minor metals, molybdenum and cobalt were neglected.
Copper and aluminium recovered from near-two-month lows set in the previous session, with analysts ascribing the recovery to dip buying.
"We are still some ways from the summer time lows so there is clearly scope for further price erosion in the short term, but we think selective consumer buying will now provide some support," RBC Capital Markets said. "We still maintain a stimulus/election-led rally is due before year-end."
The New York Stock Exchange will remain shut today - its first multi-day closure due to weather since 1888 - with bond markets also set to remain closed. While CME Group's premises in New York City must remain evacuated, its electronic trading platforms will be active, it said.
The 900-mile wide storm made landfall at about 20:00 EST with wind speeds of up to 80mph. At least 13 people are reported to have died
The closely watched US non-farm payrolls report that was due for release on for may be delayed - Hurricane Sandy has shuttered government offices in Washington, DC, and disrupted efforts to compile employment data, the Bureau of Labor Statistics said.
Elsewhere, the Bank of Japan delivered on expectations by expanding its asset purchasing programme, this time to 66 trillion yen ($830 billion). Meanwhile, China injected the highest ever amount of cash into its banking system in one day at 395 billion yuan ($63 billion).
Today's eurozone data painted a bleak picture of the region's economy. The Spanish flash GDP estimate for the second quarter came in at -0.3 percent, indicating contraction but better than the forecast -0.4 percent.
The German unemployment change for September came in at 20,000, above a predicted 10,000, while the eurozone retail PMI for October at 45.3 came in below the previous reading of 47.1.
UK CBI realised sales and an Italian bond auction are due later, while ECB president Mario Draghi is speaking in Frankfurt. US data includes house prices and consumer confidence.
In equity markets, the FTSE 100 is higher at 2,495, with the DAX also gaining ground to 7,254. In currencies, the euro regained some strength against the dollar, rising to 1.2952 from earlier sub-1.29 levels, with the dollar index lower at 79.96.
In wider commodity markets, spot gold is higher at $1,713.86 per ounce and Brent crude oil also firmer at $109.58 per barrel.
COPPER, ALUMINIUM OFF TWO-MONTH LOWS; VLISSINGEN ALUMINIUM STOCKS JUMP
Copper was last at $7,753 per tonne, up $54 on Monday's close, having fallen as low as $7,670 yesterday. Stocks were little changed, with a net inflow of just 75 tonnes. Gwangyang received 500 tonnes, while 250 tonnes left St Louis. Cancelled warrants fell 150 tonnes to 41,125 tonnes.
Aluminium, which also set a near-two-month low at $1,886 yesterday, recovered somewhat to $1,911, up $14. Inventories increased 32,450 tonnes to 5,083,150 tonnes, with the Vlissingen total up 26,450 tonnes. Cancelled warrants rose 8,050 tonnes to 1,736,500 tonnes.
"According to figures published by Chinese data provider Shanghai Metals Market (SMM), commercial aluminium stocks in China have all but doubled since the start of the year," Commerzbank said in a note.
Lead was last at $2,037, up $30. Stocks fell 1,900 tonnes, with 1,500 tonnes leaving Johor, and cancelled warrants rose 23,525 tonnes to 130,275 tonnes.
Nickel climbed back above the $16,000 mark this morning, gaining $105 to $16,075. Stocks increased 786 tonnes to 129,720 tonnes and cancelled warrants are 276 tonnes lower at 12,200 tonnes.
Tin is straddling $20,000 - it was last at $19,985, up $430. Inventories increased 100 tonnes to 11,850 tonnes, with Singapore receiving 125 tonnes. Cancelled warrants dipped 25 tonnes to 4,765 tonnes.
Zinc was last at $1,855.75, up $30.75 or about 1.5 percent. Stocks fell 3,050 tonnes to 1,171,275 tonnes, with 3,100 tonnes leaving New Orleans. Cancelled warrants rose 3,125 tonnes to 360,025 tonnes.
Steel billet was last quoted at $325/375, with stocks dipping 1,560 tonnes to 106,405 tonnes. In the minor metals, molybdenum and cobalt were neglected.
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