The People’s Bank of China (PBOC) conducted a seven-day reverse repurchase of 2 billion yuan and lowered the rate by 10 basis points to 1.9% on June 13, the first reduction in the rate since August 2022. 

Total net imports of primary aluminium in the first quarter of 2023 were 213,000 mt, up 804% year-on-year. The main supplying countries in the first quarter were the Russian Federation, Iran and Bahrain. In the first quarter, total imports from the Russian Federation reached 172,500 mt in aluminium content, a year-on-year increase of 185%.

The average operating rate of Chinese aluminium foil producers stood at 74.61% in April, down 0.82 percentage point month on month and 2.03 percentage points year on year.

Petroleum coke prices moved rangebound during April 10 and May 10, and the market transactions improved compared with the previous month. Downstream carbon plants still purchased as required. Petroleum coke stocks at domestic ports were still at a high level, exceeding 5 million mt to reach a new high as of the week ending May 5.

An aluminium giant in Shandong province lowered its May benchmark purchase prices of prebaked anode by 850 yuan/mt MoM to 4,525 yuan/mt (cash payment). As of May 12, SMM prebaked anode prices stood between 4,525-7,800 yuan/mt in east China and 4,975-5,345 yuan/mt in north-west China.

In early May, the US Fed hiked the rate by 25 basis points as expected to 5%-5.25%, the highest since August 2007.

Crude oil futures rose today. WTI oil has risen for two consecutive days, and Brent oil has risen for three consecutive times.

LME copper prices closed at $8,580/mt last Friday evening, a rise of 0.53%. Trading volumes were 18,000 lots and open interest stood at 253,000 lots. The most active SHFE 2306 copper contract ended at 66,960 yuan/mt last Friday evening, up 0.56%. Trading volume was 49,000 lots, and open interest stood at 183,000 lots. On the macro front, the stronger-than-expected U.S. employment data and wage growth rate hit expectations of the Federal Reserve’s interest rate cut. The labour market remains strong.

Crude oil futures gained ground today. As of 15:13 CST, WTI oil and Brent oil rose more than 1%.

Crude oil futures opened lower but moved higher today. WTI oil hit the lowest of $63.64 per barrel since December 2, 2021.