March 18, 2019 / 5:31 AM / 3 months ago

METALS-Copper edges higher for second day amid market tightness

 (Adds Shanghai closing prices, updates London prices)
    BEIJING, March 18 (Reuters) - London copper prices rose for
a second day on Monday, as concerns over supply tightness
outweighed weak U.S. manufacturing data and a jump in London
Metal Exchange inventories.
    LME copper stocks MCUSTX-TOTAL surged 67 percent over
Thursday and Friday to 186,425 tonnes after hovering at
decade-lows for the first half of this month.
    But supply concerns for some metals, including copper, could
widen the market deficit, ANZ wrote in a note. "This leaves
little room for replenishing depleted inventories."
    Production at MMG Ltd's Las Bambas copper deposit in Peru
could fall "in the near term" due to a month-long road blockade,
the company said last week.
    "Underlying demand has been resilient, as reflected in
Chinese imports," which for unwrought copper and copper
concentrate combined were up 12.4 percent year-on-year in
January-February, ANZ added.    
        
    FUNDAMENTALS
    * COPPER: Three-month LME copper ticked up 0.6
percent to $6,472 a tonne by 0720 GMT, after closing up 0.4
percent in the previous session. The most-traded May copper
contract on the Shanghai Futures Exchange closed up 0.8
percent at 49,350 yuan ($7,354.26) a tonne.
    * SHFE SPREADS: The spread between the front two ShFE copper
contracts, which spiked to a backwardation of over 1,000 yuan a
tonne on Friday when China said its value-added tax cut would be
implemented on April 1, is now in a contango of 90 yuan a tonne
after the March contract expired on Friday.
    * VEDANTA: Vedanta Ltd has named metals industry
veteran Pankaj Kumar as Sterlite Copper chief executive, amid
struggles to reopen its smelter in southern India.
    * CHINA: China's refined copper output in January and
February rose by 6.3 percent year-on-year to 1.34 million
tonnes. On a daily basis, output was around 22,712 tonnes, down
16.1 percent from December.
    * OTHER METALS: London nickel and zinc were
down 0.2 percent and 0.3 percent, respectively, while tin
, lead and aluminium all crept higher. 
    * U.S.: U.S. manufacturing output fell for a second straight
month in February and factory activity in New York state was
weaker than expected.
    * SANCTIONS: Russian aluminium tycoon Oleg Deripaska sued
the United States on Friday, alleging that it had overstepped
its legal bounds in imposing sanctions on him.
    * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    * Asian shares pulled ahead while bonds were in demand
globally on mounting speculation the U.S. Federal Reserve will
sound decidedly dovish at its policy meeting this week.

       
    PRICES        
 BASE METALS PRICES                       0725 GMT
 Three month LME copper                     6471.5
 Most active ShFE copper                     49340
 Three month LME aluminium                  1899.5
 Most active ShFE aluminium                  13590
 Three month LME zinc                       2781.5
 Most active ShFE zinc                       21590
 Three month LME lead                         2065
 Most active ShFE lead                       16910
 Three month LME nickel                      12900
 Most active ShFE nickel                    100060
 Three month LME tin                         21140
 Most active ShFE tin                       146400
                                                  
 BASE METALS ARBITRAGE                            
 LME/SHFE COPPER              LMESHFCUc3  -1012.37
 LME/SHFE ALUMINIUM           LMESHFALc3  -1060.87
                                          
 LME/SHFE ZINC                LMESHFZNc3   -564.82
 LME/SHFE LEAD                LMESHFPBc3    309.32
 LME/SHFE NICKEL              LMESHFNIc3   1363.08
                                          
 ($1 = 6.7104 Chinese yuan renminbi)

    
 (Reporting by Tom Daly; Editing by Subhranshu Sahu and Rashmi
Aich)
  
 
 
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below