Latest news with #SPAngel
Business Recorder
21-05-2025
- Business
- Business Recorder
Copper dips as tariff uncertainty counters weaker dollar
LONDON: Copper prices inched lower on Tuesday as worries about growth and demand due to US tariffs dominated sentiment, overshadowing support from a weaker dollar and stimulus efforts from top consumer China. Benchmark three-month copper on the London Metal Exchange (LME) was down 0.1% at $9,519 a metric ton in official open-outcry trading. Last week's trade truce between Beijing and Washington offered temporary relief to the market, but uncertainty looms over what will follow after the 90-day pause. Focus is also on an ongoing investigation into possible new tariffs on US copper imports, aimed at rebuilding domestic production of the metal critical to electric vehicles, military hardware and semiconductors. 'Investors are concerned at the potential volatility from the... investigation into copper,' said SP Angel analyst John Meyer. The probe has resulted in a price premium for COMEX copper futures against LME contracts, which traders have capitalised on by redirecting copper supplies from other markets to the United States. Inventories in COMEX-registered warehouses have surged 77% since the end of March. Meanwhile, the US dollar remained subdued, supporting prices. A weaker dollar makes metals more affordable to other currency holders. 'The weaker US dollar may be encouraging some small-scale restocking of commodities,' said Meyer. Elsewhere, China cut benchmark lending rates for the first time since October, and major state banks lowered deposit rates to aid the economy as trade war simmers. However, the sizes of the rate reductions were mild, reflecting a gradual approach to monetary easing. Among other metals, aluminium rose 0.4% to $2,459.5 a ton, zinc was up 0.8% at $2,697, lead gained 1.1% to $1,983, tin firmed 0.2% to $32,950 while nickel edged down 0.2% to $15,525.
Business Recorder
09-05-2025
- Business
- Business Recorder
Copper slips as dollar firms ahead of US-China talks
LONDON: Copper prices drifted lower on Thursday as the dollar held firm while market attention turned to US-China talks this weekend. Benchmark copper on the London Metal Exchange (LME) lost 0.3% to $9,390 a metric ton in official open-outcry trading. The US dollar index ticked up. A stronger US currency makes dollar-priced commodities more expensive for buyers with other currencies. Copper is under slight pressure from traders locking in short-term profits as well as the marginal turnaround in the US dollar, said said SP Angel analyst John Meyer, adding that he believes that 'the market is not taking big positions in this environment'. US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China's economic tsar He Lifeng in Switzerland this weekend. Adding to positive trade sentiment was news that the US and Britain are expected to announce a deal to reduce tariffs on certain goods. 'Specific to copper, the dichotomy remains the strength in Chinese copper demand in the here and now versus the street's bearish macro outlook,' said Alastair Munro, senior base metals strategist at broker Marex. The Yangshan copper premium, a gauge of Chinese import demand, is at $100 a ton, its highest since December 2023. Copper stocks in Shanghai Futures Exchange-monitored warehouses have recently registered massive drops while inventories in COMEX-owned warehouses were at their highest since late 2018. 'Amid US tariff expectations, all the metal is being drawn to CME, creating a tight supply situation in other parts of the world,' Munro said, adding that the Chinese situation is exacerbated by a shortage of scrap metal. Goldman Sachs raised its quarterly copper price forecast, citing de-escalation in trade tensions and resilient Chinese copper demand. LME aluminium added 0.2% to $2,388 a ton. Two people with knowledge of the matter told Reuters on Wednesday that Guinea has initiated a process to revoke Emirates Global Aluminium's mining licence in the West African nation. LME zinc eased 0.8% to $2,596 a ton, lead dipped 1.3% to $1,933, tin gained 1% to $31,965 and nickel was little changed at $15,555.
Business Recorder
29-04-2025
- Business
- Business Recorder
China demand drives up copper prices ahead of national holiday
LONDON: Copper prices rose on Tuesday as a result of high demand from top consumer China ahead of its May holiday, concerns about tight nearby regional supply, and a stronger yuan currency. Benchmark three-month copper on the London Metal Exchange (LME) was up 0.9% to $9,458.50 per metric ton at 1019 GMT, but failed to break through the resistance coming from its 50-day moving average of $9,489. 'We are seeing a trend of restocking in China in advance of the May Day holiday,' said Arthur Parish, an analyst at SP Angel. The mainland China market is due to close from May 1 for a five-day Labour Day holiday. The Yangshan copper premium, which reflects demand for copper imported into China, was last at $93 per ton, its highest price since December 2023. This premium is up 6% since Friday, when official data showed a 32% weekly drop in copper inventories in warehouses monitored by the Shanghai Futures Exchange. These inventories are expected to show further decline in the next SHFE data due on Wednesday, said Alastair Munro, senior base metals strategist at broker Marex, who added that this topic would remain crucial in May. Copper steadies, focus on US-China trade tensions 'The restocking requirement was exacerbated after inventories were redirected from Asia into the U.S. amid the tariff-fuelled jump in COMEX premiums,' Parish said. Copper inventories in COMEX-owned warehouses are up 40% so far this month as Washington continues its investigation on possible new U.S. copper import tariffs, keeping the Comex premium over the LME benchmark at unusually high $1,443 per ton. The spread between the LME cash copper and the three-month contract widened the premium to $30 a ton compared to a discount of $16.5 a week ago, indicating tighter nearby supply in the LME system as well. Meanwhile, the surplus in the global copper market is expected to widen this year to 289,000 tons from last year's 138,000 tons and to persist next year, according to the International Copper Study Group. China's yuan strengthened to a one-month high against the dollar on Tuesday, providing further support to the Chinese buying activity. In other London metals, aluminium rose 1.3% to $2,465 a ton, zinc added 1.2% to $2,663, lead gained 0.2% to $1,970, tin climbed 0.5% to $32,155 and nickel fell 0.1% to $15,595.
Yahoo
21-02-2025
- Business
- Yahoo
Base Metal Prices Slip But Set to End Week Higher
1217 GMT – Base metal prices fall, with LME three-month copper down 0.2% at $9,535.50 a metric ton and LME three-month aluminum down 1.3% at $2,695 a ton. However, the base metals complex is set to end the week higher on mounting concerns of trade wars and a generally weaker U.S. dollar, with copper up 0.7% on week and aluminum up 2.3% on week. Among North American copper miners, 2024 copper production was on average 5% below original guidance, and 2025 guidance was 5% below consensus estimates, RBC Capital Markets analysts say in a note. This likely reflects more conservatism on guidance from miners and more challenging mining. Some recent positive signs around U.S.-China relations are constructive for metals and the fundamentals for copper look solid, though uncertainty remains short-term, RBC adds. ( 1140 GMT – Gold futures slip, but remain close to record highs. Futures are down 0.25% at $2,948.70 a troy ounce after a fresh high of $2,973.40/oz in the prior session. The precious metal is set to finish the week higher on safe-haven demand and attention from U.S. President Trump's administration, SP Angel analysts say in a note. Trump insisted he would 'make sure the gold is there' when asked about concerns over the Fort Knox gold supply and the rally gained steam after Treasury Secretary Scott Bessent mentioned monetizing the U.S. balance sheet, SP Angel says. However, Bessent dismissed revaluing U.S. gold reserves, and ruled out gold as an asset for a new U.S. sovereign wealth fund, SP Angel writes. Consistent central bank purchases and Chinese consumer buying also continue to support gold, SP Angel adds. ( Celsius to Buy Rival Energy-Drink Maker Alani Nu for $1.8 Billion How Tariffs Could Shock America's Power System What Is Quantum Computing, and Why Does It Matter? Amazon MGM Studios Gains Creative Control of James Bond Franchise From Broccoli Family Ryan Cohen Boosts Alibaba Stake to $1 Billion 0917 GMT – Gold futures slide but remain on-track for weekly gains on safe-haven demand. Futures are down 0.6% at $2,939.70 a troy ounce, but remain up 1.4% on week. The precious metal set a fresh record high of $2,973.40/oz in the prior session, and a test of $3,000/oz is starting to look like a question of 'when' rather than 'if,' Pepperstone's Michael Brown says in a note. The $3,000 mark might give the bulls a point to reassess gold's momentum and perhaps take some profit, but upward momentum should continue with safe-haven demand continuing to linger, Brown writes. President Trump's tariff threats, lingering trade and economic uncertainty and persistent geopolitical tensions are supporting the flight to safe-haven assets like gold. ( 0704 GMT – Comex gold futures are likely extending consolidation, based on the daily chart, RHB Retail Research's Joseph Chai says in a research report. The relative strength index is now moving sideways, indicating that momentum remains neutral, the analyst notes. Hence, the commodity is likely trading sideways for consolidation. Gold is also maintaining a bullish technical setup, trading above 20- and 50-day simple moving averages, the analyst says. As long as the precious metal stays above support at the $2,800/oz level, RHB will retain a positive trading bias for the commodity. Spot gold is 0.3% lower at $2,929.74/oz. ( Starbucks CEO Tells Us His Plan to Turn Around the Company Walmart Warns of Slower Sales Gains After a Bumper Year Rio Tinto Has Backup Plan If U.S. Imposes Tariffs on Aluminum Imports Apple Keeps iPhone From Going Too Downmarket Schneider Electric Beats Market Views
