Posted on 08 Aug 2022
The most-traded Chinese copper and nickel contracts on the Shanghai Futures Exchange (SHFE) closed further higher on week when the daytime trading sessions ended on August 5, the exchange's data showed, while the SHFE's most-traded aluminum contract reversed down.
The SHFE's most-traded copper contract for September delivery increased by Yuan 640/tonne ($94.8/t) from the settlement price on July 29, closing at Yuan 60,310/t when the daytime trading session of August 5 ended. Similarly, the nickel contract – also for September delivery – climbed by Yuan 8,270/t from last Friday's settlement price to close at Yuan 177,260/t.
In parallel, the exchange's September aluminum contract closed at Yuan 18,515/t when ending the daytime trading session on Friday, down Yuan 165/t during the same period.
"The fundamentals of nickel have changed little recently, while market sentiment remains an important factor driving the futures price trend of this metal," said a Shanghai-based analyst. He warned that pressure from the supply side will increase in the future, however.
By Friday, SHFE's weekly stocks survey showed that stocks of copper and aluminum at the exchange's registered bonded and non-bonded warehouses had declined further, thinning by 2,257 tonnes and 9,566 tonnes on week to reach 34,768 tonnes and 175,792 tonnes, while nickel stocks grew 1,891 tonnes on week to 3,632 tonnes.
As of August 4, the three-month contracts of copper, aluminum and nickel on the London Metal Exchange had all declined from their prices on the previous Friday, falling by $190/t, $85.5/t and $1,409/t respectively on week to close at $7,727.5/t, $2,403/t and $22,210/t.
Source:Mysteel Global
