Latest news with #ShanghaiFuturesExchange
Mint
5 days ago
- Business
- Mint
Base metals slip as dollar firms, US tariff optimism wanes
May 30 - Industrial metals fell on Friday as the dollar strengthened and market optimism faded following a court ruling that reinstated the broadest tariffs imposed by U.S. President Donald Trump. Three-month copper on the London Metal Exchange was down 0.2% at $9,550 per metric ton, as of 0240 GMT. The red metal, used in power and construction, has still gained 4.6% so far this month, and is set for its best month since September 2024. The most-traded copper contract on the Shanghai Futures Exchange shed 0.4% to 77,680 yuan per ton. LME aluminium fell 0.4% to $2,441 a ton, zinc slipped 0.7% to $2,656, lead dipped 0.4% to $1,954 and nickel fell 0.4% to $15,310. Tin dropped 1.1% to $30,855. "Market rose yesterday due to optimism that the court was able to block Trump tariffs, but the rally faded late as the appeals court suspended that verdict," a metals trader in Singapore said. A federal appeals court temporarily reinstated the most sweeping of Trump's tariffs on Thursday, a day after a U.S. trade court ruled that the president had exceeded his authority in imposing the duties and ordered an immediate block on them. Stocks slipped in Asia as investors digested the court's move to keep Trump's tariffs in effect. Meanwhile, the dollar index rose 0.2% against its rivals, maing dollar-denominated assets more expensive to holders of other currencies. Investors await the April U.S. personal consumption expenditures price index report — the Federal Reserve's preferred inflation gauge — due later in the day, which could provide further insight into the central bank's policy direction. SHFE aluminium slipped 0.4% to 20,060 yuan a ton, lead dropped 1% to 16,585 yuan, nickel rose 1% to 120,960 yuan, while zinc lost 0.7% to 22,200 yuan and tin fell 2.5% to 251,310 yuan.
Mint
7 days ago
- Business
- Mint
Industrial metals down pressured by stronger dollar
(Recasts, updates prices for Asia market close) Industrial metals were subdued on Wednesday, weighed by a higher dollar, while improved risk appetite across financial markets following U.S. President Donald Trump's latest tariff respite offered support. Three-month copper on the London Metal Exchange was down 0.1% at $9,585 per metric ton by 0704 GMT. The most-traded copper contract on the Shanghai Futures Exchange (SHFE) edged 0.1% lower to 78,200 yuan ($10,868.36) per ton. The dollar index added to overnight gains, making dollar-denominated assets more expensive to holders of other currencies. The global refined copper market showed a 17,000 metric tons surplus in March, compared with a 180,000 metric tons surplus in February, the International Copper Study Group (ICSG) said in its latest monthly bulletin. However, risk sentiment received a boost in the wider financial markets after Trump rolled back on Sunday his threat to impose 50% tariffs on imports from the EU next month, restoring a July 9 deadline to allow for talks. "Copper prices in the last two weeks have been trading in line with all sentiment in the global stock market. Trade optimism has lifted the US stock market and it has a kind of a spill over impact on copper prices as well," said Kelvin Wong, a senior market analyst, Asia Pacific at OANDA. Also supporting risk sentiment was data on Tuesday that showed U.S. consumer confidence snapped five straight months of decline and improved in May amid the truce in the trade war between Washington and Beijing. Among other London metals, aluminium eased 0.3% to $2,478 a ton, zinc fell 0.7% to $2,688, lead shed 0.4% to $1,977 and nickel weakened 1.6% to $15,165. Tin was down 2.3% to $31,840. SHFE aluminium rose 0.2% to 20,095 yuan a ton, lead was down 0.5% at 16,705 yuan, nickel slipped 2.1% to 119,800 yuan, while zinc dipped 0.9% to 22,210 yuan and tin fell 3.1% to 256,870 yuan. ($1 = 7.1952 Chinese yuan renminbi) (Reporting by Brijesh Patel in Bengaluru; Editing by Janane Venkatraman and Sherry Jacob-Phillips)
Bloomberg
7 days ago
- Business
- Bloomberg
China Plans Commodities Overhaul to Attract Global Investors
China is on the cusp of its biggest move yet to open up its vast commodities markets, after the Shanghai Futures Exchange unveiled an internationalization plan to streamline access for overseas investors. The country's biggest raw materials bourse is soliciting views on a proposal to let participants post foreign exchange as collateral for yuan-denominated trades, according to a statement on Tuesday. Restrictions on foreigners and their capital are an oft-cited reason for China's failure to punch its weight in international markets.
Business Recorder
7 days ago
- Business
- Business Recorder
Copper steadies as tariff reprieve lifts risk appetite
Copper prices in London were stable on Wednesday, supported by improved risk appetite across financial markets following US President Donald Trump's latest tariff respite, though a firm dollar kept gains in check. Three-month copper on the London Metal Exchange held its ground at $9,593.5 per metric ton by 0214 GMT. The most-traded copper contract on the Shanghai Futures Exchange (SHFE) edged 0.1% higher to 78,390 yuan ($10,886.29) per ton. 'Copper prices in the last two weeks have been trading in line with all sentiment in the global stock market. Trade optimism has lifted the US stock market and it has a kind of a spill over impact on copper prices as well,' said Kelvin Wong, a senior market analyst, Asia Pacific at OANDA. Trump rolled back on Sunday his threat to impose 50% tariffs on imports from the EU next month, restoring a July 9 deadline to allow for talks. This boosted risk sentiment in the wider financial markets. Data showed on Tuesday that US consumer confidence snapped five straight months of decline and improved in May amid a truce in the trade war between Washington and Beijing. Copper rallies to one-month peak on signs of improving demand Meanwhile, the dollar index added to overnight gains, making dollar-denominated assets more expensive to holders of other currencies. The global refined copper market showed a 17,000 metric tons surplus in March, compared with a 180,000 metric tons surplus in February, the International Copper Study Group (ICSG) said in its latest monthly bulletin. Among other London metals, aluminium eased 0.3% to $2,478.50 a ton, zinc edged 0.1% lower to $2,703, lead shed 0.3% to $1,979.5 and nickel weakened 0.3% to $15,370. Tin was up 0.1% to $32,630. SHFE aluminium rose 0.5% to 20,165 yuan a ton, lead was down 0.2% at 16,765 yuan, nickel edged 0.4% lower to 121,870 yuan, while zinc was steady at 22,415 yuan and tin fell 0.3% to 264,440 yuan.
Business Times
7 days ago
- Business
- Business Times
China plans commodities overhaul to attract global investors
CHINA is on the cusp of its biggest move yet to open up its vast commodities markets, after the Shanghai Futures Exchange (SHFE) unveiled an internationalisation plan to streamline access for overseas investors. The country's biggest raw materials bourse is soliciting views on a proposal to let participants post foreign exchange as collateral for yuan-denominated trades, according to a statement on Tuesday (May 27). Restrictions on foreigners and their capital are an oft-cited reason for China's failure to punch its weight in international markets. The much-anticipated move would serve a number of purposes, including China's long-held ambition to more directly influence the price of the imported commodities on which its economy relies. It would also help burnish the yuan's appeal as an international currency to rival the US dollar in financial markets. SHFE, set up in 1999 and run by China's government, offers trading in contracts from copper and steel to gold, crude oil and petrochemicals. The country is the world's largest buyer of raw materials, but benchmark pricing for key commodities is usually set elsewhere, including New York and London for oil, London for base metals and Singapore for iron ore. 'It's time for yuan pricing to go global,' said Tiger Shi, managing partner at Bands Financial, who has been involved in China's commodities markets for more than two decades. Earlier, more modest moves to open up commodities futures have had limited success. The Shanghai International Energy Exchange, a SHFE unit, has offered yuan-denominated copper to overseas participants since 2020, and a crude-oil contract since 2018, but neither has made much of a dent in the dominance of international exchanges. The Dalian Commodity Exchange opened up iron ore futures in 2018, and that has found more traction as a benchmark. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The latest plan appears to go much further, by proposing sweeping changes to ease participation across 18 of SHFE's domestic contracts. The exchange will overhaul rules on market access, trading, settlement, risk control and delivery to 'systematically internationalise' trading, SHFE said. It has asked for public feedback by Jun 4. 'This is welcome news,' said Zheng Jia, head of trading at Shanghai Soochow Jiuying Investment Management. 'It will attract more diversified participants and boost liquidity, and will also connect Chinese prices more closely with overseas prices.' Price setting The proposals would serve the country's broader opening-up strategy, while helping Shanghai to develop as an international financial centre and enhancing China's influence over global commodities pricing, SHFE said. Chinese authorities have pledged to expand cross-border financial services in Shanghai, the nation's premier commercial hub. A plan released in April vowed to help international investors become more deeply involved in trading platforms, and included a push to expand yuan-denominated pricing at the Shanghai Gold Exchange. 'The future direction is to develop the yuan into a trade financing currency, or a funding currency,' said Tommy Xie, head of Asia macro research at OCBC. 'An important function of any trade financing currency is the pricing of commodities.' Shi at Bands Financial said he expects nickel to be the first contract that SHFE opens up under its new proposals. He said the bourse's plan will complement other steps to bridge the gap between China's commodities markets and the rest of the world's. The London Metal Exchange – owned by Hong Kong Exchanges & Clearing – is poised to add warehouses in Hong Kong to its global network. That's aimed at giving businesses in mainland China an easier way to ship metal to the exchange, especially at times of market stress and major dislocations between Chinese and international prices. BLOOMBERG
