Most base metals fall on China price curb fears

PUBLISHED: Fri, 21 May 2021 09:32:39 GMT
Mai Nguyen;
Reuters
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HANOI, May 21 (Reuters) – Most base metals fell on Friday, weighed down by fears that authorities in top consumer China will take measures to curb a rally in commodity prices.

Three-month copper on the London Metal Exchange fell 1.1% to $9,939 a tonne by 0313 GMT, while the most-traded June copper contract on the Shanghai Futures Exchange declined 1.1% to 72,050 yuan ($11,198.15) a tonne.

ShFE aluminium decreased 1.3% to 18,800 yuan a tonne and ShFE nickel dropped 2.5% to 125,160 yuan a tonne, while LME nickel shed 1.2% to $16,935 a tonne.

China said on Wednesday it would strengthen its management of commodity supply and demand to curb “unreasonable” increases in prices and prevent them being passed on to consumers.

FUNDAMENTALS

  • The global nickel market deficit widened to 16,100 tonnes in March from a 600-tonne gap in February, International Nickel Study Group data showed.
  • The global world refined copper market showed a 111,000 tonne surplus in February, compared with a 20,000 tonnes surplus in January, the International Copper Study Group said.

MARKETS NEWS

  • Asian stocks rose, setting the region up for a weekly gain, as investors tempered fears about hot inflation and the prospects of an early tapering of stimulus by the Federal Reserve.

DATA/EVENTS (GMT)

0600 UK Retail Sales MM, YY; Ex-Fuel MM April

0715 France Markit Mfg, Serv, Comp Flash PMIs May

0730 Germany Markit Mfg, Serv, Comp Flash PMIs May

0800 EU Markit Mfg, Serv, Comp Flash PMIs May

0830 UK Flash Comp, Mfg, Serv PMIs May

1345 US Markit Mfg, Serv, Comp Flash PMIs May

1400 US Existing Home Sales April

1400 EU Consumer Confid. Flash May

0700 Finance ministers from the 19 countries sharing the

euro meet in person in Lisbon to discuss macroeconomic

and fiscal developments in the euro area.

($1 = 6.4341 yuan)

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