SMM Price Outlook for Base Metals on SHFE (Aug. 25, 2017)

Trilogy Metals said its Arctic copper project in Alaska has been accepted into the FAST-41 federal permitting program, aimed at accelerating approvals for major infrastructure and critical mineral projects. The project is being developed through a joint venture with South32. The company recently submitted its Clean Water Act Section 404 permit application, officially starting the federal permitting process. Trilogy also noted that the US government previously announced plans to take a 10% direct ownership stake in the company as part of efforts to strengthen domestic critical mineral supply chains. According to company estimates, the Arctic deposit contains indicated resources of approximately 35.7 million tonnes grading 2.98% copper and 4.09% zinc.

[SMM Shanghai Spot Copper] Copper prices declined intraday, dipping to around 103,500 yuan/mt. Downstream buying interest rebounded notably compared to the previous trading day. According to SMM, orders at some copper processing enterprises rebounded by more than 30% from the previous day.

SMM Morning Meeting Summary: Last Friday, LME copper opened at $13,609.5/mt, touched a high of $13,661.5/mt in early trading, then the price center gradually shifted lower to $13,467.5/mt, and finally moved sideways to close at $13,544.5/mt, down 3.15%, with trading volume at 34,000 lots and open interest at 281,000 lots, an increase of 3,469 lots from the previous trading day, indicating bears adding positions. Last Friday evening, the most-traded SHFE copper 2606 contract opened at 104,050 yuan/mt, dipped to 103,810 yuan/mt in early trading, then the price center shifted slightly higher to touch 104,760 yuan/mt, and finally moved sideways to close at 104,440 yuan/mt, down 0.26%, with trading volume at 38,000 lots and open interest at 167,000 lots, a decrease of 3,793 lots from the previous trading day, indicating bulls reducing positions.