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How will Base metals prices move in September?
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Base metal prices are likely to trade lower this month as decision on the US rate hike timing in the upcoming meeting on September 17 will be cautiously awaited by investors across the globe. Also, sharp volatility in Chinese equity despite repeated intervention by the PBoC will exert pressure, as per a report by Angel Commodities.
However, ECB President Mario Draghi emphasized that the central bank was willing to expand ECB’s already massive 1 trillion-euro plus asset-buying programme if needed will restrict sharp losses.
Copper prices will likely trade with a negative bias as China demand concerns remain at the forefront. However, Copper output in China, the world’s biggest producer of the refined metal, is expected to expand more slowly than expected this year because of reduced ore and scrap supplies.
“We expect Aluminium prices to trade higher in Sep’15 as supply glut concerns will likely get a breather as Russia’s Rusal, the world’s top aluminium producer, is considering capacity cuts of 200,000 tonnes a year this year,” Angel said.
Also, its new Boguchansk smelter, which had been due to open in June, is now due to start producing in the second half of this year. Further, some big aluminium producers have offered Japanese buyers a premium of $110 per tonne for October-December primary metal shipments, up 10 percent from the previous quarter.
“We expect Nickel prices to trade higher in Sep’15 as Indonesia decided to retain its export ban on nickel ore, contrary to media reports suggesting the country may relax curbs to prop up its slowing economy,” according to Angel.
Also, Norilsk Nickel PJSC-the world’s second largest producer of nickel has raised the nickel deficit forecast for 2016 by additional 5,000 tons, on account of production cuts by high cost producers and falling nickel prices along with drastic fall in Chinese nickel pig iron output.
Fonte: Commodity Online
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