LME Base Metals Inventories (2017-10-30)

Total zinc ingots inventories across seven major markets in China stood at 284,100 mt as of April 15, up 6,100 mt from April 8, down 3,700 mt from April 11.

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.

Shanghai nonferrous metals mostly closed in the positive territory as the market was cheered up by the macro front, as China released its December official manufacturing and non-manufacturing PMI readings, which topped market expectation.

Total zinc inventories across seven Chinese markets stood at 120,100 mt as of December 31, down 6,600 mt from December 27 and 4,100 mt from December 24.

SHFE and LME zinc prices once again hit new highs in two months, mainly owing to the continuously rising electricity and natural gas prices which rose by more than 20% amid intensifying energy shortages in the eurozone, according to SMM. Meanwhile, the costs of smelters also climbed due to low zinc concentrate TCs as a result of tight supply.

Shanghai base metals basically trended lower amid a cautious market which expected the Fed to wrap up the bond purchasing program early than estimate. Meanwhile, their counterparts on LME mostly closed in the positive zone.

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.

Shanghai base metals basically trended higher on Tuesday morning amid extended power rationing. Meanwhile, their counterparts on LME mostly fell.

Purchasing interest among downstream consumers in Shanghai's spot nickel market cooled on Thursday June 21

Spot copper in the Shanghai market was offered at a premium of 230-270 yuan/mt on the morning of Friday April 20, down from a premium of 300-350 yuan/mt a day earlier