Commodities Correspondent
Pratima's Feed
Jun 15, 2015

LME’s new aluminum premium contracts: too late?

LONDON (Reuters) – Tumbling aluminum premiums on global physical markets mean new contracts aimed at mitigating the impact of higher costs, due to be launched by the London Metal Exchange (LME) in November, may be too late to serve their purpose.

The LME conceived the idea of a premium contract when the premiums were high and rising, queues for aluminum at LME warehouses were long and metal was tied up in financing deals.

Jun 9, 2015

LME faces formidable opposition to warehouses in China

HONG KONG/LONDON, June 9 (Reuters) – The London Metal
Exchange’s ambition to approve warehouses in China, particularly
in Shanghai, is running into powerful local resistance.

The main challenger is the Shanghai Futures Exchange (SHFE),
which metal industry sources say is worried about loss of
volumes, as LME-registered warehouses in China would encourage
locals to use the London exchange instead for trading. SHFE did
not comment.

Jun 8, 2015

New EU rules may hasten commodity liquidity flight

LONDON (Reuters) – Planned EU regulations on position limits in commodities are fuelling intense debate about whether the move could prompt traders to flee to Asian markets, further hurting European liquidity and potentially hurting economic growth.

Restrictions on banks and capital requirements has already subdued enthusiasm for commodity trading.

May 18, 2015

Copper dips on dollar strength, demand expectations curb losses

LONDON, May 18 (Reuters) – Copper slipped as the dollar rose
on Monday, though losses were limited by signs of potentially
stronger demand and expectations of further policy easing by top
consumer China.

Benchmark copper on the London Metal Exchange closed
down at $6,380 a tonne from $6,415 at Friday’s close.

May 13, 2015

China’s property troubles may hit copper after steel

LONDON (Reuters) – A slump in China’s property sector that has hit steel consumption may be a warning signal for industrial metal copper, which reacts with a time lag to the construction cycle.

The extent of the impact is not yet clear, but for some, falling steel demand is raising concerns about Chinese copper demand growth this year.

May 11, 2015

Copper slips, more China easing seen likely

LONDON, May 11 (Reuters) – Copper slipped on Monday as
doubts emerged about whether rate cuts in China would be enough
to stimulate economic activity in the world’s largest consumer
of industrial metals.

Benchmark copper traded at $6,363 a tonne in
official rings, down from Friday’s last bid of $6,385. The metal
used in the power and construction industries is up about 20
percent since late January.

May 7, 2015

Hopes for China stimulus help buoy copper

LONDON, May 7 (Reuters) – Copper was supported on Thursday
by expectations of further stimulus to boost economic growth in
top consumer China, but gains were capped by equity market
losses around the world.

Three-month copper was trading at $6,429 a tonne at
1011 GMMT from $6,390 at Wednesday’s close. Earlier this week
the metal used in the construction and power industries hit
$6,481 a tonne, the highest since December 15.

May 6, 2015

Tungsten prices unlikely to collapse, Wolf exec says

LONDON, May 6 (Reuters) – Expectations of collapsing
tungsten prices after China abolished export taxes are likely to
be dashed as the country’s officials have found another way to
limit shipments, Russell Clark, managing director at mining firm
Wolf Minerals, told Reuters.

A World Trade Organization ruling last year said China’s
export duties imposed on rare earths, tungsten and molybdenum,
were incompatible with the country’s WTO obligations. China has
abolished those levies effective May 1.

Apr 27, 2015

LME moves to cut warehouse queues faster

LONDON, April 27 (Reuters) – New measures to increase the
amount of metal withdrawn from warehouses, relative to material
brought in, will help to reduce queues faster at London Metal
Exchange (LME) registered warehouses, the exchange said on

The LME, the world’s oldest and biggest market for
industrial metals which is now owned by Hong Kong Exchanges and
Clearing Ltd, oversees warehouses where companies that
buy metals on its futures market can take delivery of
quality-assured supplies if needed.

Apr 20, 2015

Copper retreats after push to three-week peak

LONDON, April 20 (Reuters) – Copper jumped to a three-week
high on Monday 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
$6,173 a tonne, the highest since March 26, before falling to
$6,000 a tonne at 1441 GMT, down 1 percent on the previous