Forecast on Peru’s copper production proves to be wrong

Last week, the US Fed announced that it may begin to shrink the balance sheet at the next meeting in May. The pace will be accelerated to a monthly reduction of $95 billion.

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

Shanghai base metals mostly fell after Fed’s hawkish statements and amid the weakened demand before the China’s National Day holiday. Meanwhile, their counterparts on LME basically fell as well.

Shanghai base metals mostly trended higher on Friday morning amid slumping US dollar and eased market concerns about the default of Evergrande. Meanwhile, their counterparts on LME performed similarly.

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.

 This is a roundup of China's metals weekly inventory as of September 17.

The Biden government of the United States on September 9 stated that it would restart a procedure to permanently suspend the development of the Pebble Mine project, thereby permanently protecting the ecology of an important water area in Alaska.

Shanghai base metals trended mixed on Tuesday morning without significant bullish or bearish influential factors in the market. Meanwhile, their counterparts on LME mostly fell.

Trades in the imported copper market were quiet today as import losses expanded to 200 yuan/mt. Backwardation of LME cash to the three-month copper contract stands at $6.5/mt.     

Shanghai base metals mostly went down on Wednesday morning amid the cooled down market sentiments by the uncertainty of economic recovery. Meanwhile, their counterparts on LME all increased.