SHANGHAI, Dec. 14 (SMM) – Crude oil prices hit the lowest in nearly seven years to USD 37/bbl. The US dollar index rebounded after touching low. However, the connection between base metals in China and crude oil and US dollar index weakened. Instead, news on production cuts and stockpiling in Chinese aluminum market dominated domestic base metals market.
SHFE aluminum closed last week up 3.36%. Falling stocks in China’s major trading markets allowed SMMI.Al to gain 3.95%.
In China’s spot copper market, suppliers held back goods at lows, while processors were cautious about buying. SMMI.Cu inched up 1.43%.
Trading activity improved in domestic lead market. Smelters held back goods and traders held offers firm, while downstream producers showed higher buying interest due to improving lead-acid battery consumption. SMMI.Pb rose 1.16%.
Tin prices rebounded on shortages of certain brands, driving SMMI.Sn up 0.27%.
LME nickel lost 5%, and SHFE tin also moved down. Jinchuan nickel gained favor, but flooding of imported nickel caused SMMI.Ni to drop 1.5%.
Large inflow of imported zinc dragged down market prices. The price spread between imported and domestic zinc widened to over RMB 100/mt. SMMI.Zn slipped 0.69%.
SMMI advanced 1.37%. Base metals will continue diverging from each other this week, with weak ones likely to draw some support from strong ones.