Commodity News
HeadLine : Base Metals Mostly Went Up under Dual Control Policy
Date : Sep 27 2021
Shanghai base metals trended mixed on Monday morning under China’s intensifying dual control policy. Meanwhile, their counterparts on LME basically rose. LME metals mostly closed higher in the intraday or overnight trading last Friday. Copper advanced 0.82%, aluminium decreased 0.91%, lead rose 1.19%, and zinc rose 0.7%. SHFE metals performed similarly last Friday night. Copper edged up 0.8%, aluminium dropped 1.06%, lead rose 1.71%, and zinc increased 0.92%. On the macro front, Fed officials’ remarks fueled the expectations of asset purchase reduction. The market’s concerns about inflation made the US dollar index strengthen on Friday night, which suppressed copper prices to a certain extent. However, copper prices stood high with the fundamental support. According to SMM survey, China’s copper inventory across the major consumption areas fell by 8,500 mt on the week to 103,500 mt, setting a new low in 2021, which supported the copper prices. In addition, many places in China have recently implemented power rationing under the government's dual control policy, and some smelters have been affected. SMM will follow the impact of the electricity rationing on the supply and demand as well as the restocking before the National Day holiday. The Fed's permanent vote committee, Yellen, and the chairman of the European Central Bank all have important speeches this week, and the signals disclosed in the speeches will influence the market risk appetite. The spot transaction was quiet last Friday with few purchases amid the risk aversion sentiment. The quotations will be switched to over the 2110 contract, and the premiums are expected to stand lower.

Source: SMM
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