LME metalsLME metals are trading lower amid escalation between the two significant economies of the globe, which in turn, jeopardized the recovering global economic conditions. The recent decision by the president of the United States to raise the import tariffs on China, exerted pressure on base metals prices as it raised fear among the metal consumers of a potential industry slowdown.
In a recent statement made by the U.S. President Donald Trump, he mentioned that the counterpart and Chinese president Xi Jinping did not fulfil their commitment and if no action is taken, China will face a dire effect. The Chinese president is moving to another round of trade talks on 9th and 10th May 2019 in Washington.
As per the market expectation, if no resolution is reached in the upcoming meeting, the market could face dire impacts.
The prices of LME Aluminum futures fell from its previous day high of US$1836.50 (as on 8th May) to the present level of US$1796.75 (as on 9th May 2019 GMT-4 1:45 AM), down by almost 2.17% as compared to its previous high.
However, the lesser supply in the Chinese market of primary aluminum is expected by the market participants to provide a cushion to the prices. As per the data, the social inventories of primary aluminum across major eight consumption provinces declined by 33,000mt to stand at 1.409 million metric tonnes (as on 9th May 2019) from 5th May 2019.
The decline in inventory in China is expected to support the prices of SHFE aluminium future prices, which in turn is expected to support the counterpart LME prices.
Copper futures prices also slipped on the LME counter; the prices fell from the level of US$6289.50 (Day’s high on 7th May 2019) to the present level of US$6137.25 (as on 9th May GMT-4 1:58 AM).
Zinc futures traded lower and marked a third consecutive decline in prices. The market prices of the metal dropped from the level of US$2797.75 (Day’s high on 3rd May 2019) to the present level of US$2638.50 (as on 9th May GMT-4 2:08 AM). The LME inventory marked a build-up of around 6,000mt, which in turn, coupled with the re-escalation of the trade war, exerted pressure on Zinc prices.
Lead prices are trading near flat and in a narrow range from US$1895.00 (Day’s high on 7th May) to the level of 1852.50 (Day’s low on 2nd May). The prices slightly recovered yesterday after a steep fall from the level of US$1967.25 (day’s high on 30th April 2019). Lead futures on LME is currently trading around US$1872.00 (as on 9th May GMT-4 2:16 AM).
Tin futures traded comparatively higher to other metals. The prices recovered from the level of US$19217.50 (Day’s low on 3rd May) to the level of US$19697.50 (Day’s high on 7th May 2015). The prices are currently trading at 19437.50 (as on 9th May 2019, GMT-4 2:23 AM).
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.