Commodities Correspondent
Pratima's Feed
Oct 9, 2015

LME makes informal approach to buy London’s Baltic Exchange – sources

LONDON, Oct 9 (Reuters) – The London Metal Exchange has made
an informal approach to the Baltic Exchange, the hub of the
global shipping market, to acquire the entire business, two
sources familiar with the matter told Reuters.

The LME – previously owned by its members – was itself
bought by Hong Kong Exchanges and Clearing (HKEx) in
2012 for $2.2 billion.

Oct 5, 2015

Volatility spikes may be unintended consequence of EU commodities rules

LONDON (Reuters) – Energy traders are at odds with new European Union rules designed to halt speculation in commodities, arguing that companies won’t be able to efficiently manage risk and market volatility could in fact spike.

The European Securities and Markets Authority (ESMA) this week announced its final rules to flesh out the Markets in Financial Instruments Directive II (MiFID II) law that comes into force in January 2017.

Oct 1, 2015

Copper up on China hopes, output cuts

LONDON, Oct 1 (Reuters) – Copper climbed to its highest in
more than two weeks on Thursday as slightly above consensus
manufacturing data from top consumer China and output cuts
helped buoy prices.

Benchmark copper on the London Metal Exchange was up
0.8 percent at $5,200 a tonne at 1040 GMT from an earlier
$5,230, the highest since Sept. 22.

Sep 28, 2015

EU regulator moves to curb speculative commodity trading

LONDON, Sept 28 (Reuters) – European regulators moved on
Monday to curb the influence of speculative trading in commodity
markets and impose tests to determine whether a non-financial
firm’s trading activities should make them subject to new
regulation.

The European Securities and Markets Authority (ESMA)
announced its final rules to flesh out the Markets in Financial
Instruments Directive II (MiFID II) law that comes into force in
January 2017.

Sep 25, 2015

Copper glut, low demand could knock bullish confidence

LONDON (Reuters) – A glut of metal and sagging demand growth in top consumer China could come back to haunt copper bulls, who are feeling more confident with prices rising back above $5,000 a tonne from the 6-1/2 year lows hit last month.

Behind the recovery is a focus on weather-related disruptions in countries including Chile and Zambia, thought to have taken out 1.2-1.5 million tonnes of capacity this year, significant in a market estimated at 22 million tonnes.

Sep 14, 2015

Copper slides, China data reinforces demand fears

LONDON, Sept 14 (Reuters) – Copper prices slid on Monday
alongside Chinese equities as economic data from top consumer
China reinforced worries about demand.

Benchmark copper on the London Metal Exchange
earlier fell 1.3 percent to $5,300 a tonne. The metal used in
power and construction was at $5,330 a tonne at 1000 GMT from
Friday’s close at $5,370.

Sep 9, 2015

Copper hits seven-week high but China demand worries persist

LONDON, Sept 9 (Reuters) – Copper hit a seven-week high on
Wednesday on expectations of tighter supplies though the rally
may not be sustained without improvements in demand from top
consumer China or larger output cuts.

Benchmark copper on the London Metal Exchange was
trading up 0.5 percent at $5,373 a tonne at 1028 GMT. Earlier
the metal used in power and construction rose to $5,434.50.

Sep 7, 2015

Glencore copper output cut not a panacea for prices

LONDON, Sept 7 (Reuters) – Glencore’s move to slash copper
output will help shore up prices, but significant gains are
unlikely because supplies are still adequate and growth in
demand is weak, particularly from top consumer China.

The London-listed mining giant said it plans to
suspend 400,000 tonnes of copper output at its Katanga Mining
unit in Democratic Republic of Congo and at Mopani
Copper Mines in Zambia over the next 18 months.

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.