Alcoa raises deficit forecast; global demand to grow 7%

Alcoa Corp will suspend aluminium production at its Spanish plant (the second largest aluminium plant in Europe) for two years in response to the recent soaring energy prices in Europe. Aluminium Dunkerque Industries France, the largest aluminium smelter in Europe, announced a production cut earlier in December as energy costs hit a record high in the previous week and aggravated the financial pressure on heavy industries.

According to SMM survey, the conversion margins of aluminium billet have been standing high for a long period.

The moves of SHFE and LME have been heading toward different directions recently. As of December 8, LME lead has been falling for five consecutive sessions. SHFE lead, on the other hand, rallied strongly after falling for two days in a row, and rose 1.88% to 15,175 yuan/mt to close the day.

Market focus this week includes the readings of the manufacturing PMI in the Eurozone in November and the Markit manufacturing PMI in the United States in November; the one-year loan market interest rate as of November 22 in China. On the events front, the Federal Reserve FOMC will release the minutes of the monetary policy meeting this Thursday; Bank of England Governor Bailey will deliver a speech this Friday.

Market focus this week include: the annualised reading of new housing starts in the United States in August, the initial value of the manufacturing PMI in the Eurozone in September, and the initial value of the Markit manufacturing PMI in the United States in September; China's one-year loan market quotation interest rate as of September 22. In terms of events, FOMC will announced the interest rate resolutions this Thursday; the Fed Chairman Powell will hold a press conference; and the European Central Bank will announces an economic bulletin.

Nickel stocks across LME-approved warehouses gained 2,874 mt on Monday to 69,180 mt

Global nickel deficit in 2017 stood at 103,400 mt, compared with a deficit of 42,200 mt in 2016, according to a report by International Nickel Study Group (INSG) on Thursday February 22.

There are four hot topics of refined aluminium market under supply-side reform, said Liu Xiaolei, chief analyst of SMM at the Die-casting Industry Chain Supply-demand Communication Summit.

China’s copper prices will maintain an upward movement with the continuous recovery of global economy despite some current retracement.

As per data released by LME on Thursday. LME Lead inventory is 145,075 tons, setting new low during past two years.