The Agricultural Bank of China's huge IPO sent China's financial markets lower. Together with slower PMI growth in China and an agreement to cut deficits by G-20 Summit leaders, depressed financial markets resulted in strong short sentiment throughout base metal markets.
Copper: Last Monday, LME copper prices slid from USD 6,882/mt, while SHFE copper prices fell slower due to shortages in spot supply. The lower prices stimulated downstream buying interest. (Page 4)
Aluminum: Higher spot premiums in Henan and Shandong provinces compared to Shanghai prices were reported, but SMM believes improvements in market fundamentals in China's aluminum markets are only superficial. Market supply and demand remains sluggish and may cause aluminum prices to fall in the mid-to-long term. (Page 7)
Zinc: Zinc prices fell 25% during 2Q 2010, the largest quarterly decline since the financial crisis erupted in late 2008. (Page 8)
Lead: LME lead prices fluctuated around the 20-day moving average after tumbling on Tuesday. On Tuesday, depressed LME prices also caused domestic lead prices to fall as low as RMB 14,450-14,600/mt, with low trading sentiment reported. (Page 11)
Nickel: China's NPI output in May was down as some NPI producers with blast furnaces have halted production. (Page 12)