SHANGHAI, May 27 (SMM) – Major economic indicators from the US were mixed last week, weakening market expectations of a Fed rate hike soon. The US dollar index fell, while crude oil breached USD 50/bbl on falling inventories. The central parity of the yuan against the US dollar hit a 3-year low. Base metals consolidated at lows.
The SMMI rose 0.58%. Copper prices rebounded, with spot premiums in China firm. The SMMI.Cu rose 1.37%. July aluminum on the SHFE plunged 3.5% at one point on Wednesday wthi the exodus of longs, falling below RMB 12,000/mt. With sharp drop in inventories, aluminum gained back losses, with SMMI.Al up 0.34%.
The SMMI.Ni was down 2.34%. SHFE nickel slipped as stainless steel plants purchased modestly on market pessimism. Nickel remains in oversupply.
Tin supply grew whilst demand softened, with the SMMI.Sn down 1.15%.
Lead and zinc rallied. The SMMI.Pb dropped 0.41%. Some smelters in Henan supported prices on limited supply. But downstream buying interest was weak. Zinc smelters held back goods, but hedge traders sold actively. Downstream buyers purchased proactively at lows. SMMI.Zn slid 0.21%. Base metals should fluctuate widely next week.