Once again, not that it matters to CSD because it's share price is crap (I'm predicting negative 1.2 cents next week)... All metals are up and running...
LME MORNING – Base metals climb on improved risk appetite
Posted on March 2, 2016 by Ewa Manthey
Base metals continued to climb on Wednesday morning on the LME on improved risk appetite.
“A buoyant start this morning – industrial metals were further helped by rallies in Asian equity markets,” a trader said.
The Shanghai Composite Index closed 4.26 percent higher today. Growing expectations that China will introduce further stimulus measures to kick-start growth are boosting sentiment.
On Monday, the People’s Bank of China cut the reserve requirement ratio – the amount of cash that country’s largest banks must hold as reserves – by 0.5 percentage points to 17 percent effective March 1.
China’s National People’s Congress will convene in Beijing on March 5 for a 10-day meeting where investors will be looking for further stimulus measures and structural reforms.
Better-than-expected US manufacturing data on Tuesday also lifted sentiment, market participants noted.
“In conjunction with the better economic figures that had already been reported, this suggests that the US economy has got off to a more positive start to the new year than was previously assumed, and that the weak fourth quarter of 2015 was merely an exception,” Commerzbank noted.
Today’s US data includes the ADP non-farm employment change, crude oil inventories and the Beige book. Traders will also be watching today’s options declarations in the late morning.
In the metals, copper was at its strongest since November when it approached $4,800 – it recently traded at $4,788 per tonne, up $72 on Tuesday’s close. Around 10,000 lots have changed hands on Select so far.
“The latest surge in metal prices in general and in the copper price in particular was driven in part by speculation,” Commerzbank noted.
In today’s warehouse data, stocks fell a net 2,725 tonnes to 190,750 tonnes and cancelled warrants dropped 1,700 tonnes to 46,000 tonnes.
Aluminium is back around October highs – at $1,581, it was up $8. Stocks fell 4,500 tonnes to 2,751,100 tonnes.
New LME warehouse house loadout rates kicked in yesterday, which traders said played a part in keeping spreads tight despite higher on-warrant stock availability. Cash/threes was at a backwardation of $13.50, with the March date at a backwardation of $20.00.
Nickel was last $115 higher at $8,795 despite stocks rising 570 tonnes to 440,502 tonnes and cancelled warrants falling 4,554 tonnes to 157,890 tonnes.
Zinc climbed above $1,800 for the first time since October 19 – it was last at $1,810, up $25. Stocks and cancelled warrants both fell 3,575 tonnes to 471,525 tonnes and 72,575 tonnes respectively.
Alongside tin, zinc has been one of the standout performers in the year to date, increasing more than 20 percent, which typically signals a bull market.
Fundamentals have played a part, with many analysts forecasting a deficit this year and a return to $2,000.
Tin recently traded at $16,070, up $75. Stocks climbed 20 tonnes to 3,675 tonnes. Lead at $1,795 was up $17; stocks were unchanged.
Steel billet, cobalt and molybdenum were neglected.
- See more at: http://www.fastmarkets.com/base-met...ved-risk-appetite-109903#sthash.WmgsPOJ8.dpuf
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