[May 17, 2010]Expectations of Higher Interest Rates Weigh on Base Metal Market Long Positions - Highlight from China Base Metal Briefing-Shanghai Metals Market

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[May 17, 2010]Expectations of Higher Interest Rates Weigh on Base Metal Market Long Positions - Highlight from China Base Metal Briefing

Data Analysis 04:35:56PM May 17, 2010 Source:SMM

Market concerns over the ongoing debt crisis in Europe are easing, with base metals markets stabilizing over the past week. Market expectations grew of higher interest rates in China, given a CPI growth of 2.8% and a PPI increase of 6.8%, measured on a yearly basis. CBI believes base metals market will lack upward momentum in the short term. 

Copper: The ongoing debt crisis in Europe sent LME copper prices lower. Market caution resulted in low spot consumption, and coupled with the coming seasonal low demand period beginning in June, demand is expected to fall further.   (Page 3)

Aluminum:  China's alumina imports declined significantly to 150 kt during April. It will also take for new alumina capacity to be able to meet demand from aluminum producers in China.  (Page 7)

Zinc:  TC of domestic zinc concentrate declined steadily, and zinc concentrate producers in some regions were reluctant to move goods.  (Page 9)

Lead:  Last week, LME lead prices rose at first, then fell back. Transactions in domestic lead market were made between RMB 15,150-15,300/mt. (Page 11)

Nickel: Prices of (4-6%) NPI and (10 -15%) NPI all fell. (Page 14)

Key Words:  metal  SMM report 

[May 17, 2010]Expectations of Higher Interest Rates Weigh on Base Metal Market Long Positions - Highlight from China Base Metal Briefing

Data Analysis 04:35:56PM May 17, 2010 Source:SMM

Market concerns over the ongoing debt crisis in Europe are easing, with base metals markets stabilizing over the past week. Market expectations grew of higher interest rates in China, given a CPI growth of 2.8% and a PPI increase of 6.8%, measured on a yearly basis. CBI believes base metals market will lack upward momentum in the short term. 

Copper: The ongoing debt crisis in Europe sent LME copper prices lower. Market caution resulted in low spot consumption, and coupled with the coming seasonal low demand period beginning in June, demand is expected to fall further.   (Page 3)

Aluminum:  China's alumina imports declined significantly to 150 kt during April. It will also take for new alumina capacity to be able to meet demand from aluminum producers in China.  (Page 7)

Zinc:  TC of domestic zinc concentrate declined steadily, and zinc concentrate producers in some regions were reluctant to move goods.  (Page 9)

Lead:  Last week, LME lead prices rose at first, then fell back. Transactions in domestic lead market were made between RMB 15,150-15,300/mt. (Page 11)

Nickel: Prices of (4-6%) NPI and (10 -15%) NPI all fell. (Page 14)

Key Words:  metal  SMM report