Can you believe we have just passed through the middle of the year already! With the Financial year now over, it’s all downhill towards Christmas which will no doubt be upon us in no time.
Up until yesterday I was of the opinion that prices would need to come back this morning, however a slight recovery in the LME and a steady exchange rate have allowed prices to remain reasonably level. There is a little tension in the market at the moment with many traders and manufacturing plants continuing to keep stocks low to ensure they are not caught with overpriced material.
**** Copper Hits Ten-Day High As LME Metals Rise ****
By Laura Clarke @ dowjones.com
0917 GMT [Dow Jones] Copper jumps to a ten-day high on a bout of short-covering as a weaker dollar helps lift metals. Analysts at Commerzbank note that following substantial losses in recent weeks, the mood in metal markets has turned somewhat upbeat. “In China, the official Purchasing Managers’ Index for the manufacturing sector did fall as expected to 50.1 in June – however, it did not slide below the expansion threshold of 50,” the German bank notes. “A slowdown in China’s economic activity was clearly already priced in, as the positioning of speculative financial investors also shows,” it says. LME 3-month copper +1.8% at $6,870/ton.
**** DJ BASE METALS HIGHLIGHTS: Top Stories Of The Day ****
UPDATE: LME Proposes to Cut Warehouse Waiting Time
The London Metal Exchange proposed major reforms to its warehouse network aimed at reducing long waits for aluminum, copper and other metals that have sparked complaints from industrial consumers.
MARKETS: Copper Rallies to Two-Week High on Global Manufacturing Data
NEW YORK: Copper prices settled at their highest level in two weeks as manufacturing data from around the world soothed worries about demand.