Nonferrous metals traded lower for the most part on Thursday morning as comments from Federal Reserve Chairman Jerome Powell and downbeat economic data out of the US and Europe weighed on investor sentiment.

Crude steel output across major mills in China averaged 2.05 million mt per day in the first 10 days of May.

While production expands, inventory pressure at steel plants continued to reduce on the back of growing consumption, and this may provide upward momentum in near-term steel prices. 

Inventories of hot-rolled coils of steel sheets used to produce home appliances and cars in China fell for an eighth straight week this week, as demand remained robust. SMM data showed that HRC stocks across social warehouses and steelmakers decreased 2.31% in the week ended May 7 to 4.45 million mt. That was smaller than a 4.6% fall in the previous week due to the Labour Day holiday and improved arrivals.

Prices of construction steel rebar will likely stay rangebound in the weeks ahead, underpinned by strong demand from stepped-up operations at construction sites while supply pressure continues to mount. 

The oil market collapse weighed on investors sentiment for a second straight day.

SHFE nonferrous metals, except for lead and nickel, closed lower on Tuesday, as oil prices plunged after the May US crude futures prices turned negative for the first time in history overnight.

SHFE nonferrous metals opened higher across the board on Friday morning, recovering some losses Thursday, as investors caution eased amid US tentative steps to restart the economy and progress on the fight against the coronavirus.

SMM data showed that HRC stocks across social warehouses and steelmakers decreased 4.56% in the week ended April 16 to 5.02 million mt, marking a fifth straight week of decline and larger than a 3.59% fall in the previous week.

SHFE base metals traded mixed on Wednesday morning, after a broad rally on Tuesday which was prompted by lifted market sentiment following better-than-expected China March trade data.