Base metals

Interesting night on the base metals, up then down. Tin now in surplus fears. Thank goodness for the Aussie dollar and the zinc production!

Not long now for that quarterly.

$2.37 million in positive cashflow is expected, according to previous quarterly.


Metals, all bar nickel, are lower

• AAP
• APRIL 21, 2015 7:20AM

COPPER has jumped to a three-week high after China eased monetary policy to stimulate a slowing economy, only for prices to reverse as hopes of stronger demand receded.

THREE-MONTH copper on the London Metal Exchange hit $US6,173 a tonne, the highest since March 26, before closing at $US5,990 a tonne, down one per cent on the previous close.

China's easing, though more aggressive than expected, had been expected and so was already priced in to an extent.


"The reaction so far is relatively modest; there has been speculation for some time about more easing in China," Danske Bank analyst Jens Pederson said.


"There is some concern China may allow its currency to weaken, which could have a short-term negative effect on base metals."


A firmer US dollar also weighed on metals. A stronger dollar is typically a negative influence for commodities because it makes them more expensive for investors holding other currencies.


However, expectations of a narrower copper market surplus because of mine disruptions have helped to boost sentiment, though the Chinese property market remains a concern despite a move to boost banks' lending power by cutting the amount they must hold in reserves.


Three-month tin ended down 2.4 per cent at $US14,500 a tonne. Last week the metal used in electronic components tumbled to $US13,600, its lowest since September 2009, on concerns about a supply glut.


"Export figures coming out of Indonesia in the months ahead will be crucial; the market will need to see much tighter supply discipline from Indonesia if the bullish narrative in tin is to materialise," INTL FCStone analyst Ed Meir said.


"Indeed, with declining stocks and an expected deficit for this year, the basic ingredients for a move higher are in place."


Three-month zinc climbed to a session peak of $US2,248 a tonne, the highest since December 5, and ended down 1.6 per cent at $US2,178.


Expectations of a zinc market deficit and falling stocks in LME-registered warehouses -- at 492,575 tonnes, down more than 30 per cent since September 2014 -- are behind higher prices.


In news, Vedanta Resources said its Lisheen mine in Ireland will close in October, taking a large amount of zinc concentrate out of the market.


Battery material lead has also been helped by falling LME stocks, which at 200,200 tonnes have fallen more than 15 per cent over the past four weeks.


Three-month lead dipped 0.6 per cent to end at $US2,019.


Aluminium ended 0.3 per cent down at $US1,810 and nickel added 2.0 per cent to close at $US12,800.