Shanghai aluminium prices slip as ingot flows improve
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Shanghai aluminium prices slip as ingot flows improve
(Adds analyst comment, updates prices)
BEIJING, Jan 17 (Reuters) - Shanghai aluminium prices
extended declines into a second session on Wednesday as
improving weather conditions smoothed the flow of ingots from
China's remote northwestern Xinjiang region to the east of the
country.
Heavy snowfall in Xinjiang, a key aluminium smelting region,
had disrupted transportation this month, leaving ingots stuck in
transit. "Even so, the inventory on the market is still
growing," said Xu Maili, director of non-ferrous metal reserarch
at Everbright Futures in Shanghai.
Shanghai aluminium prices are already down 3.9 percent year
-to-date, with deliverable Shanghai Futures Exchange (ShFE)
aluminium stocks at a record 773,941 tonnes, as of Jan. 12.
"As the weather is okay now, transport will get better and
people expect to see more ingot deliveries to warehouses," said
CRU analyst Jackie Wang.

FUNDAMENTALS
* SHANGHAI ALUMINIUM: The most-traded March contract
on the ShFE was down 1.8 pct at 14,625 yuan
($2,275.34) a tonne, as of 0452 GMT. Earlier in the session, it
touched its lowest since Dec. 20 at 14,560 yuan a tonne.
* LONDON ALUMINIUM: Aluminium on the London Metal Exchange
(LME) slipped 0.1 percent to $2,188 per tonne, shedding
the modest gains it posted since Tuesday's close.
* SHFE COPPER: The most-traded ShFE copper contract
edged 1.4 percent down to 53,850 yuan a tonne, to its lowest
close since Dec. 20, as traders locked in profits ahead of Lunar
New Year.
* LONDON COPPER: Three-month copper on the London Metal
Exchange gained 0.1 percent to $7,082 a tonne, partly
recovering from the 1.8 percent fall in the previous session.
* POSITIONS: Futures brokerage Gelin Dahua cut its long
position on the ShFE April copper contract by 35 percent
on Tuesday, according to ShFE data, but remains the top position
holder for the month with 7,803 lots.
* NICKEL: Shanghai nickel was down 1.9 percent at
97,280 yuan a tonne, poised for its fourth consecutive session
of declines, tracking a more than 5 percent slide in London on
Tuesday.
* INVENTORIES: Stocks of industrial metals in LME warehouses
fell more than 40 percent last year and further declines are
expected in 2018, which should in theory signal tighter supplies
and fuel a blistering price rally.
* AUSTRALIA: Mining group South32 Ltd's
second-quarter metallurgical coal output dropped 43 percent due
to the suspension of operations at its Appin mine in Australia
over safety concerns, the company said on Wednesday.

* RIO TINTO: Rio Tinto Plc on Tuesday said a
U.S. regulator's lawsuit accusing the big Anglo-Australian
mining company of fraud for overstating the value of Mozambique
coal assets it had bought in 2011 should be dismissed.


* For the top stories in metals and other news, click
or

MARKETS NEWS
* Asian stocks stepped back from a record high on Wednesday
as the region's resource shares were hit by falling oil and
commodity prices while digital currencies tumbled on worries
about tighter regulations.

DATA/EVENTS AHEAD (GMT)
1415 U.S. Industrial production Dec
1500 U.S. NAHB housing market index Jan
1500 U.S. Senate Banking Committee votes on nomination
of Jerome Powell to be chairman of the
Federal Reserve

PRICES

BASE METALS PRICES 0515 GMT
Three month LME copper 7087
Most active ShFE copper 53850
Three month LME aluminium 2187
Most active ShFE aluminium 14625
Three month LME zinc 3396.5
Most active ShFE zinc 26105
Three month LME lead 2563
Most active ShFE lead 19140
Three month LME nickel 12500
Most active ShFE nickel 97280
Three month LME tin 20410
Most active ShFE tin 145010


LME/SHFE COPPER LMESHFCUc3 675.03
LME/SHFE ALUMINIUM LMESHFALc3 -1705.26

LME/SHFE ZINC LMESHFZNc3 274.57
LME/SHFE LEAD LMESHFPBc3 -702.6
LME/SHFE NICKEL LMESHFNIc3 2244.93


($1 = 6.4276 Chinese yuan)


(Reporting by Tom Daly, Editing by Joseph Radford and Sherry
Jacob-Phillips)



First Published: 2018-01-17 04:54:04
Updated 2018-01-17 07:19:57



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