Copper CMCU3 increased 2.1% to $7,515 a tonne on the London Metal Exchange. While zinc CMZN3 up 0.6% to $2,926, nickel CMNI3 fell 2.2% to $21,735. Lead CMPB3 dropped significantly 2.3% to $1,944. And tin CMSN3 fell 1.0% to $19,100. (Read more)
As available supplies decreased and investors held out hope that China will loosen its rigorous COVID restrictions, aluminium prices on rebounded on Thursday, snapping a four-session losing streak.
After falling 8% over the previous four sessions. The price of three-month aluminium on the London Metal Exchange CMAL3 has increased 2.5% to $2,220 per tonne by 1730 GMT.
On the Shanghai Futures Exchange, the most actively traded aluminium contract, SAFcv1, increased 1% to 18,470 yuan a tonne.
“There’s nothing sustainably bullish in this market – it’s still massively bearish there.” Said Tom Price, head of commodities strategy at Liberum. “We might see some rebounds in metals prices, largely on rates-related re-positioning and short-covering.”
According to sources with knowledge of the situation. China is considering reducing the quarantine period for incoming tourists from 10 to 7 days.
“It is motivated by emotions. If they lift the quarantine, it at least moves us closer to reopening. That will have a significant impact given how much China eats, “said Zenon Ho, a Marex analyst.
To stop the coronavirus, that has slowed economic growth and decreased demand for metal. China has implemented rigorous transportation and quarantine laws.
Data on Thursday revealed an 18% reduction in the quantity of aluminium that was readily available in LME registered warehouses MALSTX-TOTAL after owners of more than 100,000 tonnes of metal announced their intention to withdraw their stock.
However, other data showing a generally solid supply, with international aluminium supply up 4.3% year over year to 5.7 million metric tonnes in September, restrained price increases.