Shanghai base metals mostly trended lower on Wednesday morning amid stronger risk aversion sentiments. Meanwhile, their counterparts on LME all trended higher.

According to a report by the Australian Department of Industry, Science, Energy and Resources (DISER), global nickel finished products consumption will record 2.7 million mt in 2021, an increase of 15%, and register 2.9 million mt and 3 million mt in 2022 and 2023, respectively.

The PMI for steel downstream sectors stood at 49.97 in November, down 0.1 point month on month, but up 0.29 point year on year. The seasonally-adjusted composite index stood at 49.77, an increase of 1.37 points MoM and 0.27 point YoY.

Shanghai base metals mostly trended upwards on Tuesday morning after the market concerns of new COVID-19 variant subsided. Meanwhile, their counterparts on LME trended mixed.

The steel mills lowered their guide prices early last week, depressing the spot market and growing market pessimism.

The operating rates at alloy plants increased as the production in Jiangsu and Zhejiang recovered after the easing of production restrictions. Besides, the alloy plants that digested finished products in the previous period have plans of producing.

Focuses this week should include: Industrial/Economic Climate Index, CPI monthly rate and the readings of Manufacturing PMI in Eurozone in November, US ADP payrolls and US unemployment rate in November; China official manufacturing PMI, China Caixin Manufacturing PMI in November. In terms of events, the Fed Governor Bowman will deliver a speech on the central bank and the US economy this Tuesday. European Central Bank President Lagarde will participate in a round table meeting in Turin. The Fed will publish a Beige Book on economic conditions this Thursday.

Imports of cobalt intermediate products were 5,166 mt in metal content in October (calculated at 27% grade), down 30% MoM.

Shanghai base metals basically trended lower on Monday morning amid risk aversion sentiments after the discovery of a super strong variant of COVID-19 was discover last Friday. Meanwhile, their counterparts on LME all cruised higher.

Shanghai nonferrous metals mostly closed in the negative territory, as the market feared the new COVID variant detected in South Africa with higher infection rate, according to some health authorities.