DAILY ROUND-UP – FastMarkets on a metals bounce, tighter spreads and tin cuts

A round-up of FastMarkets’ top stories published on January 14.

LME base metals veered away from their early lows during the latter segment of Thursday LME trading, with end-day covering temporarily negating overall downward momentum.

LME aluminium spreads have moved into backwardation again for nearby dates and, this time, the forward curve has tightened too, making financing a less profitable business and probably pushing more stock off-warrant.

Price-induced supply cuts in China and elsewhere will see the tin market slip to a 10,000-tonne deficit in 2016, said Peter Kettle, manager of market analysis at industry association ITRI.

Codelco will maintain copper output at the current level of 1.8 million tonnes per year despite the bearish market depressing commodity prices.

The announcement of production cuts has given the CME Group’s Aluminum MW US Transaction Premium (AUP) contract a small bump for January through March but participants remain fairly pessimistic about the rest of the year.

Bankruptcies, asset sales and a lack of expansionary capex will alter leads to significant changes to the mining industry landscape, market participants told FastMarkets.

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.