DAILY ROUND-UP – FastMarkets on LME Week Asia and China SRB

A round-up of the top FastMarkets stories from June 16.

Comex copper tilted back into negative territory Thursday in the US amid a combination of a stronger dollar and worsening global growth expectations.

To be or not to be; that is the question - or the question on the majority of delegates’ lips during LME Week Asia here, at least – facing the mooted trading platform run by its members and overseen by former LME CEO Martin Abbott.

China plans to increase its reserves of some non-ferrous metals “appropriately” and overhaul the system of stockpiling as carried commercially and officially, according to State Council guidelines posted on its website on Thursday.

Base metals were largely lower during a jumpy Thursday LME session, reversing direction from the previous session, against a backdrop of widespread negativity in global financial markets, traders said.

China will extend its resource tax reforms to non-ferrous metals ores and concentrates – among other commodities – in July, according to a statement posted on the State Administration of Taxation’s official website.

The LME said on Thursday that its latest member, Jump Trading Futures LLC, will commence activity from the start of next week.

Global commodities broker Marex Spectron, which is a ring dealer member (RDM) of the London Metal Exchange (LME), has appointed Matthew France as head of institutional sales, metals, in Asia.

Volumes and open interest are growing in the LME’s two cash-settled steel contracts, which have gained more traction after a slow genesis amid some significant movements in underlying ore and physical markets.

Commodities have started to be affected by the uncertainty around the UK’s future in the EU, ANZ said.

Crude stainless steel producer at China’s largest stainless steel producer, Tsingshan Holding Group, is expected to rise 3.8 percent to around 5.5 million tonnes this year, said Kevin He, vice president of Tsingshan Holding Group.

Chinese zinc smelters have shunned imported concentrates in the spot market this year due to the closed arbitrage between the London Metal Exchange and Shanghai Futures Exchange for most of this year, while choosing to rely on domestic concentrate supply.

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.