Commodities Correspondent
Pratima's Feed
Sep 1, 2015

Copper bears retreat, but probably only to marshal forces

LONDON (Reuters) – Copper bears appear to have taken cover, but they are unlikely to hide for long as falling output costs due to “currency wars” and weak Chinese demand growth provide ample ammunition for another attack over coming months.

Benchmark copper on the London Metal Exchange fell to a six-year low of $4,855 a tonne on Aug. 24, since which time prices of the metal used in power and construction have recovered to above $5,000 a tonne.

Aug 27, 2015

Speculators betting on lower LME copper prices, beware

LONDON (Reuters) – A first glance at the London Metal Exchange copper price would suggest a market in trouble, but delve beneath the surface and a different picture emerges – one that may well deter speculators from betting on further deep losses.

Benchmark three-month copper futures hit a six-year low of $4,855 a tonne on Monday, capitulating to fears about the growth outlook in top consumer China.

Aug 6, 2015

Supply glut pushes aluminum to six-year low

LONDON (Reuters) – Aluminum prices tumbled to six-year lows on Thursday as the market focused on a growing supply glut due to surging exports from top producer China and high stocks.

Benchmark aluminum on the London Metal Exchange fell to $1,576 a tonne (1 tonne = 1.1023 ton), the lowest since July 2009. The metal used in transport and packaging pared losses to $1,591 a tonne by 1403 GMT (1003 EDT), down 0.4 percent.

Aug 6, 2015

Tighter supplies fortify copper, lay foundation for price rally

LONDON, Aug 6 (Reuters) – Power outages, strikes, floods and
drought as well as lower grade source material are tightening
copper supplies, potentially pushing the market into deficit
earlier than expected and laying the ground for price gains
later this year.

Estimates of how much copper output will be lost vary.
Morgan Stanley puts the amount at about 500,000 tonnes so far
this year, while ICBC Standard Bank reckons an annualised 1.33
million tonnes.

Aug 4, 2015

Copper bounces on Chinese equities rally, weaker dollar

LONDON, Aug 4 (Reuters) – Copper prices bounced on Tuesday
in response to a weaker dollar and a rally in Chinese equities,
but significant gains are unlikely until markets shift their
focus back to fundamentals from macro-economics.

Benchmark copper on the London Metal Exchange traded
up at $5,225 a tonne in official rings, from $5,220 at the close
on Monday – when the metal, used in power and construction, fell
to a six-year low at $5,142.

Aug 3, 2015

Technicals say door to $5,000 open for copper

LONDON (Reuters) – Copper prices under pressure from worries about demand from top consumer China are heading for further losses towards the psychological $5,000 a tonne level, a break of which could open the door to the July 2009 low at $4,710.

Benchmark copper on the London Metal Exchange earlier on Monday hit a six-year low of $5,142 a tonne, a drop of more than 20 percent since the May peak.

Jul 31, 2015

ArcelorMittal sees Chinese steel demand shrinking this year

BRUSSELS, July 31 (Reuters) – China’s steel demand will
shrink this year and lead to a flood of exports, ArcelorMittal
said on Friday, highlighting the growth problems
facing the world’s top consumer and producer of the construction

The company sees China’s steel demand including inventory
changes sliding by up to 1 percent compared with a previous
forecast of growth between half a percentage point and 1

Jul 29, 2015

Copper rallies alongside Chinese equities

LONDON, July 29 (Reuters) – Copper prices rose on Wednesday,
boosted by stronger Chinese equities and expectations that
China, a top consumer of industrial metals, will move to support
growth and sentiment with further stimulus.

Benchmark copper on the London Metal Exchange was
trading up at $5,333 a tonne at 0958 GMT from $5,300 at
Tuesday’s close.

Jul 28, 2015

LME Clear to accept offshore yuan as cash collateral

LONDON, July 28 (Reuters) – The London Metal Exchange’s
clearing house will from Tuesday accept the offshore yuan
as cash collateral, a step that will further Chinese ambitions
to see its currency more widely used in international trade.

The move follows regulatory approval by the Bank Of England,
the exchange said in a release. The LME is owned by Hong Kong
Exchanges & Clearing Ltd.

Jul 27, 2015

Speculators show global commodities rout still has legs

LONDON (Reuters) – Speculators have confirmed what everyone else has been thinking: expect more falls in commodities, as worries about China and higher interest rates combine with waning sentiment to suggest markets are heading further south.

But while more losses are certain, their scope could be limited because a large number of speculators have already made bets that prices will fall.