SHFE & Market today (May 22nd)

As a weaker dollar pushed investor appetite for commodities,  base metals prices on the SHFE went up during Asia morning trading today.


Firstly, the most-traded July copper contract on the Shanghai Futures Exchange rose 580 yuan ($84.30) or 1.3% to 45,880 yuan per tonne as of 03:30 BST. Secondly, over 250,000 lots of the contract have changed hands so far.

In the meantime, the three-month copper contract on the LME rose $29 to $5,676.50 per tonne.

“Commodity markets rallied across the board as the political turmoil in the USA reignited, sparking a weaker US dollar, which helped increase investor appetite in commodities.” (ANZ Research)

The dollar index fell as low as 97.08 last Friday. Which makes it the lowest since November 2016. The political uncertainties in the USA are questioning the US president Donald Trump’s planned infrastructure spending and tax cut plans.

Crude oil prices are also rising supported by the news that members of the Organisation of the Petroleum Exporting Countries will extend their supply cut into next year while also deepening the cuts.

 

Copper stocks in SHFE 

Observing the  deliverable copper stocks at Shanghai Futures Exchange: Approved warehouses rose 1,365 tonnes or 0.7% over last week to 196,358 tonnes as of Friday May 19. Meanwhile the SHFE-LME copper arbitrage remains at a loss – it was at close to $90 per tonne on Friday. Later, on Friday, total copper stocks at LME warehouses fell 3,700 tonnes, to 336,650 tonnes.

Other base metals higher 

When speaking about the SHFE contract, July aluminium contract rose 45 yuan or 0.3% to 14,075 yuan per tonne. Following, the SHFE July zinc price went up 905 yuan or 4.2% to 22,335 yuan per tonne.  Also, the SHFE June lead price climbed 400 yuan or 2.6% to 15,785 yuan per tonne. 

Paying attention to nickel prices, the SHFE September nickel contract gained 2,290 yuan to 78,310 yuan per tonne. Finishing with  the SHFE September tin price which moved up 3,140 yuan. In percentage that is 4.1%, to 147,190 yuan per tonne.

Currencies & data

The Brent crude oil spot price rose 0.6% to $54.11 per barrel as of 03:21 BST on Monday.
Currently, the dollar index rose 0.2% to 97.31 as of 03:20 BST. Observing the Shanghai Composite index, it stood at 3,100.59 recently. Which makes it about 0.32% up.

As of today’s data, those are mainly the European events in slight focus. First of all Europe’s Buba monthly report and then China’s CB leading index due later today. The Euro group meeting will also take place in Brussels later today.
The UK prime minister Theresa May is speaking.

The beginning of the weekly trading seems to have picked up a positive expectations and the upward trends. As for the base metals, for Oil also. Speaking about Important Economic Events today, it is pretty calm day. Nothing bombastic is not currently happening. Later during the day FOMC Members are speaking. Also the RBA Assist Gov Debelle speaks. Some data about RUB Retail Sales are already out. It reached the actual level of -0.4%, while the expected was -1.2%.

Japan Trade Balance fell to actual 482B, while the forecast was 521B.

 

By | 2017-05-22T06:48:45+00:00 May 22nd, 2017|International|0 Comments

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