Base Metals Prices Mostly Decline (Nov. 28-Dec. 2, 2016)

SHANGHAI, Dec. 2 (SMM) – Base metals surged early this week as the US dollar index fell. But Chinese yuan stopped weakening after the People’s Bank of China’s (PBOC) statement, rallying to 6.88, weighing down base metals. As OPEC countries agreed to freeze oil output, crude oil prices rebounded, driving up base metals.

The SMMI was down 2%, with aluminum, nickel and copper leading price declines. Arriving shipments of aluminum grew, allowing cargo holders to sell off goods. The SMMI.Al decreased 4.2%. SHFE nickel was down 4.42%. Jinchuan Group lowered ex-works prices by RMB 3,000/mt from last week. SMMI.Ni fell 3.52%. The SMMI.Cu fell 3.1%. Tin resisted declines, and SMMI.Sn only dropped 1%. The SMMI.Pb rose 4.5%.

SHFE zinc surged initially and then dropped, down 3%. The SMMI.Zn slid 0.99%. base metals are expected to remain range-bound next week.