LME Market Report - Base metals mixed, aluminum fell nearly 1% due to stronger US dollar
May 22 08:05:36, 2024
Metal prices on the London Metal Exchange (LME) were mixed on Thursday, with aluminum falling by nearly 1% due to a stronger US dollar triggering fund selling, but zinc recovery on dips in buying support. Zinc fell sharply on the previous day. Traders said. Investing cautiously before Easter, before the end of the previous quarter, the market may still be under pressure to close out the fund. LME will be closed on Fridays and next Mondays for Easter. Three-month aluminum overnight composite trading closed lower 18 The US dollar was quoted at US$1,929 per tonne. "Aluminum once again led the decline and suffered some speculative selling pressure," said Standard Chartered Bank analyst Baha, adding that the dollar’s ​​strength has triggered the settlement of the fund and selling. He pointed out that today Closed below $1,940, the aluminum futures will be further pressured next week. "The futures price of copper has not been affected by the decline in aluminum prices." He said. Copper futures composite trading fell 11 US dollars to 3,197, but the cash/three-month reverse spread has been From about 125 US dollars a week ago to 150/160 US dollars. Dealers said that although the base metal market is still affected by the US dollar, but LME inventory decline and tight supply will support copper. LME copper stocks fell by 1,575 tons to 45,125 tons, It was lower since February 27. 9,625 or 21% will be delivered, unable to enter the market. Copper fell more than 2% on Wednesday, zinc fell more than 4% during the period, due to dollar strength triggered fund selling and triggered stop-loss sell orders. ** fundamentals remain tense ** an analyst "As the fund has always been a major support factor for the metal market, it is not surprising that its profit-taking behavior has had a significant impact on the market." "However, the fund's sell-off has not changed the fact that The fundamentals are still tense, and supply will become increasingly tense this year for many metals." "This indicates that trade and consumer buyers will regard this sell-off as a good opportunity to dip and buy." US dollar against the euro Stronger, partly driven by technical factors. The euro is currently trading at about $1.2952. The three-month zinc rallied and rose by $14 to $1,341 per ton. Three-month lead rose by $1 to $951 per ton. Three-month nickel fell $150 to 15,750. Three-month nickel was flat at $8,175.