Commodity News
HeadLine : Base Metals Basically Rose amid Extended Power Rationing
Date : Oct 12 2021
Shanghai base metals basically trended higher on Tuesday morning amid extended power rationing. Meanwhile, their counterparts on LME mostly fell. LME metals basically closed higher in the intraday or overnight trading on Monday. Copper rose 1.94%, aluminium gained 1.79%, zinc won 1.69%, and lead fell 0.4%. SHFE metals performed similarly last night. Copper gained 1.07%, aluminium rose 2.21%, zinc won 1.88%, and lead dropped 0.64%. As the energy crisis intensified, global coal and natural gas inventories stood low, and their prices soared, boosting the demand for crude oil. US oil rose on Monday and closed above $80 for the first time in 7 years. In the spot market, the transaction was light. Traders did not intend to enter the market due to the high prices despite the wide Backwardation structure. A large amount of imported copper may arrive at the ports recently, and the high premiums may fall back. SMM data showed that the social inventory of aluminium ingots rose further to 864,000 mt on October 11. Aluminium plants are still affected by power rationing and their costs continue to rise. As such, aluminium prices still have strong upward momentum.

Source: SMM
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