SHANGHAI, May 14 (SMM) – European and US economic data were mixed last week. The US dollar index rose, while ferrous metals prices in China tumbled. Base metals extended declines, with copper and nickel leading declines. SMMI was down 1.97%.
LME nickel lost 4.32% and SHFE nickel lost 3.11%. Jinchuan Group cut ex-works prices 5 times. SMMI.Ni was down 3.28%.
SMMI.Cu dropped 3.11%. LME copper and SHFE copper lost over 3% on short selling. Spot premiums in domestic spot market rose, and downstream buyers went bargain hunting.
SHFE aluminum fell, while spot aluminum prices fell slower. SMMI.Al was down 1.85%.
LME tin fell over 3% and SHFE tin fell 3.47%. Smelters held back goods at lows. SMMI.Sn dropped 1.77%.
LME lead fell 1.66%. Lead supply was ample in China, and demand was poor, with SMMI.Pb down 0.22%.
Supply of #1 zinc was tight early last week. Traders released hedged goods into the market after SHFE zinc fell, and downstream buyers were active in the market. Smelters became eager to sell in the second half of week after zinc prices rebounded, but downstream buyers turned away from higher prices. SMMI.Zn was up 1.47%.
Base metals prices are expected to continue falling this coming week.