SMM News: Shanghai lead rose on Thursday, following a rise in lead prices in London as investors worried that some maintenance activities at Chinese factories would lead to a shortage of supplies.
The main September lead contract on the Shanghai Futures Exchange rose 1.06% to 16695 yuan per ton.
(LME) three-month lead fell 0.05 per cent to $2084 a tonne on the London Metal Exchange.
At 15-52 Beijing time, three-month lead jumped 2.6 per cent on Wednesday, the biggest increase in more than six weeks, as lead stocks at LME registered warehouses fell to a 10-year low of 57425 tons.
LME three-month nickel fell 3.44 per cent to $14050 a tonne in early European trading.
Shanghai nickel closed down 1.7% at 110040 yuan per ton.
"some people are happy with the price rise yesterday and they expect it to return to $15000," said one nickel analyst. But there was a big fall today. "
LME copper for three-month delivery rose 0.29 per cent to $6016.50 a tonne, aluminium for three-month delivery rose 0.05 per cent and zinc for three-month delivery fell 0.59 per cent.
Shanghai copper rose 0.6%, Shanghai aluminum rose 0.83%, and Shanghai zinc fell 0.05%.
LME spot lead to three-month lead turned to $1.50 a tonne on Wednesday, indicating a recent supply shortage.
But the supply shortage is expected to ease soon, and a senior executive at Henan Yuguang Gold and lead Co., Ltd. said a lead smelter in Jiyuan, Henan province, was about to complete repairs.
The LME three-month tin spread also turned to $10 a tonne after maintaining a discount for most of July. Shanghai tin closed up 1.41%, while LME tin fell 0.98%, the biggest gain in three weeks the previous day.
Gao, spokesman for the Ministry of Commerce, revealed at a regular press conference this afternoon that in order to implement the consensus reached at the Osaka meeting between the two heads of state, the leaders of China and the United States will meet in Shanghai, China, from 30 to 31 July. The 12th round of Sino-US high-level economic and trade consultations will be held on the basis of equality and mutual respect.
Marcin Chludzinski, chief executive of Polish miner KGHM, predicted on Wednesday that copper prices would fluctuate around $6000 a tonne by the end of the year.
"We believe that, from a fundamental point of view, copper prices are justified to rise sharply," Commerzbank analysts wrote in the report, which referred to a shortage of supply in the copper market.