August 10, 2017 / 7:49 AM / in 3 years

METALS-London metals take a breather on N.Korea tensions

 (Updates prices)
    By Melanie Burton
    MELBOURNE, Aug 10 (Reuters) - London copper and aluminium
paused near their highest in more than two years on Thursday,
amid profit-taking in wider markets  as investors fretted about
the simmering tensions between the United States and North
    China aluminium extended gains earlier on Thursday to strike
its highest since 2012, with investors flooding into the market
on prospects that capacity closures in the world's top producer
would tighten supply.
    Industry reform across China's steel and aluminium sectors
that has seen capacity closures has helped drive the rally in
metals, but there were broader reasons for the move, said
analyst Daniel Morgan of UBS in Sydney.
    Synchronous global growth for most of this year, China's
resilient property cycle and the weaker dollar have also given
investors a reason to get involved, he said. 
   "I don't think the rally in metals is due to any one factor."

    * SHFE ALUMINIUM: Shanghai Futures Exchange aluminium
 pared gains to end up 0.28 percent at 16,085 yuan 
($2,415) a tonne by 0640 GMT, having earlier hit its highest
since May 2012 at 16,460 yuan. 
    Open interest flew to a record-high around 900,000 lots and
was up by 50 percent since Aug. 1. 
    * LME ALUMINIUM: LME aluminium hovered near its highest in
more than two years above $2,000 a tonne.
    * Chinese steel futures rose to trade near a 4-1/2-year high
on Thursday, supporting prices of key input materials zinc and
nickel, as investors remained bullish ahead of production cuts
in the world's top steel producer.
    * LME COPPER: LME copper was trading flat at $6,457,
 down 0.1 percent. That followed a slightly softer close the day
before, when investors booked profits after prices marked their
highest since December 2014 at $6,515 a tonne.
    * SHFE COPPER: Shfe copper eased 0.6 percent.
    * LME LEAD: London lead played catch up, rising 1.1
percent. China research firm Antaike said the start of
environmental inspections in Sichuan province had prompted 60
percent of local lead-zinc mines to shut down for month-long
maintenance. That could mean lower supplies of zinc and lead in
August and September.
    * CHINA ALUMINIUM: China's top aluminium foil producers are
preparing a legal defence challenging a preliminary U.S. ruling
on Wednesday that would impose hefty penalties on imports from
the world's top producers, two sources familiar with the matter
    * Premiums for aluminium and zinc in Shanghai bonded zones
rose after the Shanghai prices rallied harder than LME prices,
suggesting the gap for imports had become profitable. Aluminium
premiums rose $7.50, having dropped $12.50 earlier this week.
LME zinc prices rose $10.  <0#BASEBW-SHMET>
    * NICKEL CUTS: First Quantum Minerals Ltd said on
Wednesday it planned to suspend operations at its Ravensthorpe
nickel mine in Western Australia at the beginning of next month
due to persistently weak nickel prices, affecting around 450
employees and contractors.
 BASE METALS PRICES                0731 GMT            
 Three month LME copper                          6453.5
 Most active ShFE copper                          50770
 Three month LME aluminium                       2028.5
 Most active ShFE aluminium                       16080
 Three month LME zinc                            2936.5
 Most active ShFE zinc                            24270
 Three month LME lead                              2373
 Most active ShFE lead                            19420
 Three month LME nickel                           10815
 Most active ShFE nickel                          87940
 Three month LME tin                              20350
 Most active ShFE tin                            147380
 BASE METALS ARBITRAGE                                 
 LME/SHFE COPPER               LMESHFCUc3        685.08
 LME/SHFE ALUMINIUM            LMESHFALc3        375.46
 LME/SHFE ZINC                 LMESHFZNc3       1014.31
 LME/SHFE LEAD                 LMESHFPBc3        241.42
 LME/SHFE NICKEL               LMESHFNIc3       1934.74
($1 = 6.6614 Chinese yuan)

 (Reporting by Melanie Burton; Editing by Joseph Radford and
Amrutha Gayathri)
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