DAILY ROUND-UP – FastMarkets on LME spreads and ‘misunderstood’ China ali export subsidies

A round-up of FastMarkets’ top stories published on April 18.

Base metals reversed direction during late LME trading on Monday, aided by oil prices regaining some traction and a softer dollar, with nickel and zinc in particular moving to notable mini-upswing highs.

LME aluminium spreads tightened this week while available material continues to fall amid a series of planned and potential changes to warehouse regulations.

Metals trading veteran Christian Schirmeister with be joining LME ring dealer member (RDM) Amalgamated Metal Trading Ltd (AMT) at the start of May as a senior client liaison officer.

The forward curve for the CME Group’s Aluminum MW US Transaction Premium (AUP) contract remains remarkably flat, which suggests that participants expect premiums to trade in a narrow range for the remainder of this year.

Reports from the US government that China will withdraw export subsidies on aluminium have been “misunderstood” and the status quo of tax rebates for exports remains in place for now, sources in the Chinese aluminium industry told FastMarkets on Monday.

Britain’s exit from the European Union (EU) would see the UK stop being “rule makers and become rule takers”, BHP Billiton CEO Andrew Mackenzie has warned.

What’s happened to LME warehouses since the ‘bazooka’ was loaded – a timeline of warehousing reforms.

Fajr Investment Advisory has been approved as a category five member of the LME.

The LME’s cash-settled ferrous contracts - steel scrap and steel rebar - that were launched late last year continue to grow, with turnovers and open interest increasing, albeit undramatically.

High-frequency traders (HFTs) are not systematically using their speed advantage over slower forms of trading to anticipate order flows in equity markets over small time-frames although there are signs that over longer time-spans that this is taking place, the UK’s Financial Conduct Authority (FCA) said in a study.

Codelco said late on Saturday that it had suspended production at its El Teniente mine in Chile, which will likely lead to a loss of 5,000 tonnes of copper production.

Will Adams

About Will Adams

William Adams has been involved in the metals markets since 1982 – he has experience in many areas of the market from researching to trading and has worked in London, New York and Tokyo.