By Onome Amuge
Base metal prices on the London Metal Exchange (LME) were mainly weaker on Wednesday morning, with the exception of aluminium and tin, after average rebounds of about 1.4 percent garnered at the close of Tuesday’s trading sessions
Copper was down 0.4 percent at $9,471 per tonne, nickel lost 0.1 percent at $18,700 per tonne, zinc shed 0.2 percent at $2,994 per tonne, lead declined 0.3 percent at $2,290.5 per tonne. Aluminium remained unchanged at $2,586 per tonne, while tin gained 0.4 percent at $35,190 per tonne.
Commodity analysts opine that the yield on US 10-year treasuries which leapt higher to 1.37 percent (highest level since July 13) compared with 1.31 percent at a similar time on Tuesday and a firmer dollar recorded on Tuesday, wielded pressure on base metal prices.
On the other hand, the most-active base metals contracts on the Shanghai Futures Exchange (ShFE) were mainly stronger Wednesday morning in reaction to Tuesday’s LME gains. The exception being September lead, which shed 0.1 percent at 15,410 yuan per tonne, while the rest were up by an average of 1.2 percent.
September tin had the highest gain of 2.4 percent at 238,330 yuan per tonne, September aluminium rose 1.5 percent 20,155 yuan per tonne, September copper was 0.8 percent higher at 69,800 yuan per tonne, October zinc was up 0.7 percent at 22,475 yuan per tonne, while September nickel gained 0.5 percent at 139,630 yuan per tonne.
Despite the losses recorded on the LME this morning, analysts noted that the underlying sentiment for base metals is bullish – or at least not bearish, and likely to close the day’s session in positive territory. Their assertion is based on the fact that the metals have in most cases, shrugged off recent weakness as seen by Tuesday’s rebounds off earlier lows. They also noted that any weakness in base metal prices could only be short-lived because the underlying long-term picture remains bullish.
As it stands, aluminium and zinc prices continue to hold in high ground, while tin remains the strongest in the base metals complex due to being surrounded by supply disruptions at a time of strong demand.
September tin had the highest gain of 2.4 per cent at 238,330 yuan per tonne,September aluminium rose 1.5 per cent 20,155 yuan per tonne,September copper was 0.8 per cent higher at 69,800 yuan per tonne,October zinc was up 0.7 per cent at 22,475 yuan per tonne, while September nickel gained 0.5 per cent at 139,630 yuan per tonne.
Despite the losses recorded on the LME this morning, analysts noted that the underlying sentiment for base metals is bullish – or at least not bearish, and likely to close the day’s session in positive territory. Their assertion is based on the fact that the metals have in most cases, shrugged off recent weakness as seen by Tuesday’s rebounds off earlier lows. They also noted that any weakness in base metal prices could only be short-lived because the underlying long-term picture remains bullish.
As it stands, aluminium and zinc prices continue to hold in high ground, while tin remains the strongest in the base metals complex due to being surrounded by supply disruptions at a time of strong demand.
Copper was down 0.4 percent at $9,471 per tonne, nickel lost 0.1 percent at $18,700 per tonne, zinc shed 0.2 percent at $2,994 per tonne, lead declined 0.3 percent at $2,290.5 per tonne. Aluminium remained unchanged at $2,586 per tonne, while tin gained 0.4 percent at $35,190 per tonne. 
