The US dollar index surged to 82.24 helping weigh down base metal prices. Without any significant improvement in downstream demand, CBI believes base metal prices will continue to fluctuate in the coming week.
Copper: Jiangxi Copper's takeover of Yantai Penghui Copper Industry Company marks a new phase in mergers and acquisitions in China's copper smelting sector. Over the next two years, more companies will be involved in mergers and acquisitions described in the adjustment and revitalization plans for the non-ferrous metals sector. (Page 3)
Aluminum: Drought conditions in southwest China continue to deteriorate. Although no production cuts or stoppages were recently reported, most producers are conducting maintenance on electrolytic cells ahead of schedule in order to reduce demand for electricity. Approximately 50 kt/yr of aluminum capacity is believed to be affected by this maintenance, but any negative impact may grow in the future. (Page 8)
Zinc: The strengthening US dollar weighed down metals prices, but SHFE zinc prices fell slower than overseas market prices. (Page 9)
Lead: Domestic lead prices fell slower compared with LME lead prices, helping improve trading sentiment. (Page 11)
Nickel: Nickel plate inventories at traders and producers continue to enter markets, adding to oversupply pressure. (Page 15)