DAILY ROUND-UP – FastMarkets on physical premiums and Gunvor book sale

A daily round-up of the top FastMarkets stories from June 21. 

Singapore metals trader Kyen Resources has agreed to buy Gunvor’s copper and zinc books, sources close to the negotiations told FastMarkets.

Physical markets were relatively mixed this week, with a slowing in activity already evident for the seasonally quieter summer months.

Base metals apart from nickel concluded Tuesday LME trading in positive territory but the mood remains uncertain, with investors sticking to the sidelines ahead of this week’s UK referendum on EU membership.

Brokers and traders on the the LME, as well as the exchange itself, are getting ready for the decision and fallout from Thursday’s UK EU referendum, which will decide whether the country remains a member of the 28-strong European Union (EU).

The copper price would be vulnerable to a downturn should the UK vote to leave the EU in this week’s referendum due to dollar strength, Societe Generale said.

China’s import of unwrought copper and copper alloy rose 20.1 percent year-on-year but fell five percent month-on-month to 380,000 tonnes in May, according to final trade data released by the country’s General Administration of Customs.

China’s exports of aluminium fabricated products rose 2.9 percent year-on-year and 2.8 percent month-on-month to 370,000 tonnes in May, according to final trade data published by the country’s General Administration of Customs.

Rio Tinto has shaken up its organisational structure under its new chief executive Jean-Sébastien Jacques, with planned changes to take effect from July 2, it said.

Hong Kong futures brokerage Bands Financial, founded by base metal industry veterans John Browning and Tiger Shi, is expanding operations in Hong Kong and Shanghai.

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.