Is it difficult for non-ferrous metals to sort out the pile of economic reports and news?

On Tuesday, September 10, the value of a three-month contract for aluminum and copper on the London Metal Exchange ignored the strong position of the dollar, with significant trading volumes. "Trading last week was characterized by systemic coverage of short positions, while transaction volumes are returning to previous levels, making it seem that quotes will move more aggressively," the Marex Spectron materials note.

The cost of aluminum finished on the LME at $1,819.50 per ton, trading activity grew, and by the time the session ended, more than 13 thousand lots of metal had been sold.
One of the factors supporting the price was the outflow of 3,175 tons of aluminum from the international warehouses of the exchange, while the total level of metal reserves amounted to 916,825 thousand tons, relatively unchanged since the beginning of September. Meanwhile, it is reported that the queue for unloading aluminum from warehouses in Port Klange (Malaysia) has doubled to 64 days as of the end of August.

The three-month copper contract held above the psychologically important mark of $5,800 per ton. About 13,000 lots of copper were sold at the end of the auction, helped by reports that the Peruvian National Federation of Miners had called for an indefinite strike. The positive dynamics of the quotations of the "red metal" is associated with a possible reaction to the de-registration of 2,525 tons of copper. Its reserves on the LME amounted to 310,450 thousand tons.

The volume of transactions with other non-ferrous metals was noticeably lower against the background of the strengthening dollar. About 7,000 lots of zinc were sold.
The continuing price difference between nickel with delayed and immediate delivery continues to attract metal to LME warehouses – stocks have increased by almost 10% since reaching a 7-year low of 141,906 thousand tons in August, to 155,910 thousand tons.

The quotes of the three-month supply contract continued to move above the level of $18,000 per ton, ending trading at $18040 per ton.
At the morning trading in Shanghai on September 11, non-ferrous metals continued to show mixed dynamics, although investor activity was somewhat supported by reports that China would buy more American agricultural products to strengthen its negotiating position at the talks scheduled for early next month between representatives of China and the United States.

The quotations of aluminum and zinc rose slightly against the background of softening rhetoric in trade relations between the countries, as well as due to increased optimism about the state of the fundamental factors of the markets of these metals.

The cost of aluminum increased by 30 yuan (0.2%) on ShFE, to 14385 yuan ($2022) per ton. Support for metal prices was provided by information that, following the introduction of a ban on the export of nickel ore, Indonesia is also considering a possible ban on the export of bauxite, which may lead to a shortage of them.
"Aluminum prices jumped after the American manufacturer Alcoa warned of possible supply disruptions (bauxite. – MetalTorg.ru ) from Indonesia. The ban on the export of bauxite ore may be enough to eliminate the surplus of this raw material on the market," ANZ Research experts say.
Meanwhile, copper did not rush to react positively to the restoration of macroeconomic optimism, which was reduced by the weakening of the Chilean peso and the restoration of the dollar's position, analyst Boris Mikanikrezai emphasizes.

The copper contract for November delivery fell by 200 yuan (0.4%) to 47.230 thousand yuan per ton. The rest of the complex also fell into a downward trend.
Investors continue to analyze new economic reports, waiting for the results of meetings of the Federal Reserve and the European Central Bank committees, at which monetary stimulus measures may be announced. The meeting of the Federal Reserve Committee will be held on September 17-18, and the ECB will be held on September 12.

It is reported that the inflation rate in China rose in August more than expected – by 2.8% year-on-year. Meanwhile, the industrial price index unexpectedly fell by 0.8%, marking the fastest pullback in 3 years.

11.09.2019