METALS-Copper, nickel bounce off lows after China factory data, steel rally

By Kitco News / May 02, 2018 / www.kitco.com / Article Link


* LME/ShFE arb:
* GRAPHIC-2018 asset returns: (Adds closing prices, details)By Maytaal AngelLONDON, May 2 (Reuters) - Copper and nickel bounced offmulti-week lows on Wednesday as Chinese steel prices soared anda private survey showed growth in China's manufacturing sectorunexpectedly picked up in April.The Caixin/Markit Manufacturing Purchasing Managers' index(PMI) climbed to 51.1, from a four-month low of 51.0 in March,and topped economists' forecasts. But the same survey showed a sub-index on export ordersshrinking for the first time since November 2016. An officialPMI survey on Monday also showed slower shipment orders lastmonth. "The PMI (data) doesn't bode well for activity in the comingmonths," said Caroline Bain, senior commodities economist atCapital Economics."We're not expecting metals to fall off a cliff, we justthink they could drift lower in the second half. There's a riskwe've peaked with the global economy."


COPPER, NICKEL: Three-month copper on the London MetalExchange ended up 1.1 percent at $6,820 per tonne, afterhitting $6,710 on Tuesday, its weakest since April 4. Nickel closed up 2.4 percent at $13,980, after hitting itslowest since April 12 on Tuesday.CHINA STEEL: China's steel rebar futures soared to theirhighest in eight weeks, buoyed by a firm physical market andfalling inventories. U.S. TRADE EU: European Commission President Jean-ClaudeJuncker said the European Union will not accept threats in talkswith the United States to secure a permanent exemption from U.S.import tariffs on steel and aluminium. U.S. TRADE BRAZIL: Brazil contradicted a U.S. announcementthat the two countries had reached a deal on a permanentexemption from steel and aluminum import tariffs, saying theTrump administration had unilaterally cut off talks. RUSAL: The U.S. Treasury gave investors an additional monthto divest or transfer their holdings in sanctions targets En+Group Plc , GAZ Group and Rusal Plc , Russia's largest aluminium producer. ALUMINIUM: Aluminium closed up 2.7 percent at $2,322a tonne. Prices hit a seven-year peak of $2,718 on April 19after the United States imposed sanctions on Rusal.ALUMINIUM STOCKS: On-warrant or available LME aluminiumstocks have fallen to 880,350 tonnes, close to the their lowestnumber since 2007.COLUMN-Sanctions turmoil exposes alumina pricing fragility GLOBAL MARKETS: The U.S. dollar rose to four-month highs andworld stock indexes mostly edged lower amid expectations theFederal Reserve will sound more hawkish on policy tightening. OTHER METALS: Zinc closed down 0.2 percent at
$3,047 a tonne, lead ended down 1 percent at $2,270while tin closed down 0.6 percent at $21,080.




<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Manolo Serapio Jr.; Editing by DaleHudson, Louise Heavens and Jane Merriman)

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LME price overview COMEX copper futures Base metals news All metals news All commodities news Metals diary Foreign exchange rates SPEED GUIDES)) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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