SHANGHAI, May 21 (SMM) –Amid mixed news, base metals posted diverging movements in this past week with SMMI finally edging up 0.28%.
US economic figures were positive and US Fed officials said that rate hike in June is possible should US economic figures continue improving. US dollar index thus jumped 1% to 95.502, refreshing a 7-week high. Crude oil prices grew to a half-year high of near USD 50/bbl thanks to support from falling output in Nigeria, dropping US inventories and cut in oil price forecast by Goldman Sachs.
Aluminum performed best among base metals and SMMI.Al reported a gain of 2.7%. Inventories slid continuously and spot supply remained tightened. Traders rushed to hoarded stocks, inverting spot discounts into premiums. SMMI.Cu increased 0.14%. Cargo holders held offers firm and pushed up spot premiums. SMMI.Sn led the losses of 1.59% with shorts gathering strength.
SMMI.Pb fell 1.13%. Hedged goods flowed into market in a large amount, though smelters held back sales. In spot zinc market, hedged goods and delivered goods were filled in market, weighing on spot prices. Downstream buyers purchased at lows and SMMI.Zn slipped 0.37%. Jinchuan Group cut ex-work prices for four times this week and traders were active in selling. SMMI.Ni registered a fall of 0.12%. SHFE base metals will still face downward pressure while spot base metals prices will stay firm.
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