LIVE FUTURES REPORT 23/11: LME metals weaker across the board; copper corrects

“This follows a stronger performance on Wednesday when the complex closed with gains of between 0.3% and 0.7% – it seems the market read the US Federal Open Market Committee (FOMC) minutes as being more dovish than expected,” Metal Bulletin senior analyst William Adams said.

The three-month copper price corrected lower after climbing $45 per tonne at the close yesterday. Prices were buoyed by news of strike action in Peru but production is reportedly unaffected.

Nickel’s three-month price dipped $160 per tonne this morning and continues to be unstable, drifting between the $11,600 and $11,800 per tonne range.

The metal should continue to find support from underlying fundamentals over the next few weeks.

“As the International Nickel Study Group (INSG) reported on Monday, the global nickel market showed a supply deficit of 54,300 tonnes in the first three quarters of the year. This was somewhat higher than in the same period last year. For the year as a whole, the INSG is envisaging a deficit of nearly 100,000 tonnes, which implies a huge shortfall in supply in the fourth quarter,” Commerzbank said

Lead and zinc prices are both lower this morning after lead came under pressure yesterday from a let technical sell-off.

“Yesterday’s underperformance for lead saw the lead and zinc switch widen out to -$765 by the close, the widest seen since November 2,” Marex Spectron said in their morning note.

Zhuzhou Smelter, China’s largest zinc smelter, has also announced plans to build a new zinc smelting project with 300,000 tpy of capacity.

Aluminium prices continue to consolidate at current levels, following continued winter capacity cuts in China.

Base metals prices 

• The three-month copper price was down $34 to $6,920 per tonne. Stocks continued to decline, falling a net 7,200 tonnes to 219,075 tonnes. 
• Aluminium’s three-month price was down $5 to $2,102 per tonne. Inventories dropped 4,925 tonnes to 1,128,875 tonnes with 3,300 tonnes freshly cancelled. 
• The three-month nickel price declined $160 to $11,690 per tonne. Stocks dipped 438 tonnes to 383,766 tonnes, with 2,244 tonnes freshly cancelled. 
• Zinc’s three-month price fell $10 to $3,218 per tonne. Inventories were 1,400 tonnes lower at 221,125 tonnes. 
• The three-month lead price declined $31 to $2,431 per tonne. Stocks were unchanged at 145,325 tonnes. 
• Tin’s three-month price was at $19,300 per tonne, a decline of $100. Inventories were also unchanged at 2,200 per tonne.

Currency moves and data releases 

• The dollar index was down 0.15% to 93.16. 
• In other commodities, the Brent crude oil spot price fell 0.49% to $62.93 per barrel. 
• The weaker tone from the FOMC minutes has pushed the dollar lower as seen by the dollar index that has fallen to 93.22, down from 95.15 in late October and early November. 
• Trading may be quiet in the United States with the national Thanksgiving holiday today. 
• The economic agenda is busy today with flash manufacturing and services purchasing managers index (PMI) data out across Europe. The second estimate for the United Kingdom’s third-quarter gross domestic product (GDP) is also due as well as the country’s preliminary business investment and CBI realized sales. 
• In addition, the European Central Bank’s October monetary policy meeting accounts will be released at 12.30pm London time.