China’s copper cathode output in March increased even as secondary copper production continued to contract due to the unfavourable price spread between copper cathode and copper scrap, in addition to copper scrap supply issues. The global outbreak of COVID-19 took a toll on copper scrap supply from Malaysia.

SHFE nonferrous metals, except for tin and nickel, traded lower on Monday, giving up the rebound from last Friday as investors remained cautious about the economic toll of the COVID-19 pandemic. 

London and Shanghai base metals cruised broadly higher in early morning trade on Friday, as a series of stimulus steps around the world, including a gigantic US package, calmed a panic over a global recession following the coronavirus outbreak.

SHFE nonferrous metals declined across the board on Monday, giving up gains from last Friday, as uncertainties around the economic impact of the fast-spreading coronavirus outbreak continued to depress investors’ sentiment.

London and Shanghai base metals traded lower across the board in early morning trade on Monday, extending declines from the prior week, as fears over the economic impact of the global coronavirus outbreak continue to weigh heavily on investor sentiment. The most active SHFE copper contract for May delivery plunged 8% to hit its “limit down” level at 35,300 yuan/mt shortly after the opening the bell.

SHFE nonferrous metals went higher across the board on Friday, recovering from the heavy losses in the prior two sessions, as investors hoped that more stimulus from governments and central banks will shield the world economy from the rapid spread of the coronavirus. Zinc led the increases with a rise of 4.22%. Copper advanced 2.45%, aluminum gained 0.46%, lead added 3.38%, tin increased 3.31%, and nickel expanded 2.95%. 

SMM data showed that lead social stocks across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin decreased more than 10,000 mt in the week ended March 20 to 25,600 mt, much larger than a decline of 1,900 mt mt in the previous week.

Operating rates across licensed smelters of secondary lead in Jiangsu, Anhui, Henan and Guizhou increased 1.7 percentage points from the prior week to 23% in the week ended March 20, showed a SMM survey.

London industrial metals rallied broadly on Friday, boosted by further economic measures by Beijing and expectations of a stimulus package from the US. LME metals later eased to close the day mostly higher, with nickel leading the gains with a 3.6% surge. Zinc jumped 1.8%, aluminium rose 1.7%, and copper advanced 0.3%, while lead fell 0.7% and tin dropped 1.7%.

Lead shed 1.2% on the day to be the biggest loser among SHFE base metals, copper slipped 0.6%, nickel lost 0.5% and aluminium sank 0.3%. Zinc and tin held their gains from the broad rebound in the previous session, climbing 0.6% and 0.3% on the day, respectively.