SMM News: according to foreign news on May 10, the price of (LME) copper and other industrial metals on the London Metal Exchange rebounded on Friday as the market hoped that China and the United States would reach a trade agreement. But metal prices remain vulnerable to further friction between the world's two largest economies.
China deeply regrets that the US has raised tariffs on $200 billion of Chinese imports from 10 per cent to 25 per cent and will have to take the necessary countermeasures, the Ministry of Commerce said on Friday. The 11th round of high-level economic and trade consultations between China and the United States is under way, and it is hoped that the United States and China will move in the opposite direction and make joint efforts to resolve the existing problems through cooperation and consultation.
"I thought the market would be a red ocean at the start of the day, but I thought the market was going to break down completely," said Ross Strachan, senior commodities economist at CIC Macro in London. "I thought the market was going to be a red ocean at the start of the day, but I think the market was going to break up completely. But this is not the case, which at least provides some comfort. "
"the market is generally quite optimistic about the prospects for a deal, which does leave some room for metal prices to be hit down by more unpleasant surprises in the coming days."
Copper for three months rose 0.4 per cent to $6126 a tonne at 17:00 London time on May 10 (00:00 on May 11, Beijing time), but is still expected to fall for the fourth straight week.
Michael Taylor, managing director and chief credit officer of Mudia Pacific, said: "in the context of the economic slowdown, the tariff increase will have a significant negative impact on exports."
He added that China's further easing of policy could only partially mitigate the impact.
LME spot nickel hit a three-month nickel discount this week at its lowest level since mid-January at $39.50 a tonne in a sign of supply tightening. The discount has fallen from $84 in the past three weeks to $43.
LME nickel stocks fell to 169578 tons, the lowest since April 2013, according to LME data.
Rebar futures rose slightly on Friday on the Shanghai Futures Exchange, following gains in commodity markets, and investors are still looking forward to a trade agreement between China and the United States. This further supports the price of nickel.
LME three-month nickel closed untraded, with the final purchase price rising 1.5 per cent to $11925 a tonne, making it LME's second-best performing metal today.
Three-month aluminium closed 0.6% higher at $1808 a tonne.
Three-month zinc rose 0.8 per cent to $2630 a tonne.
Three-month lead fell 0.7 per cent to $1822 a tonne.
Three-month tin rose 1.9% to $19625 a tonne.