Locally and Internationally, metal markets are coasting along without any major fluctuation to report of. Additionally, with a slight show of stability being shown by the US Government, the Australian Dollar has stopped gaining ground against the USD.
**** DJ LME Metals Trade Higher, Eyes on Fed — Market Talk ****
By Laura Clarke @ dowjones.com
1037 GMT [Dow Jones] LME metals push moderately higher, with Commerzbank noting a “positive undertone.” Investors this week are eyeing the Federal Open Market Committee’s October policy meeting that concludes Wednesday. Many market watchers believe the case for a “tapering” of U.S. economic stimulus has been pushed down the road by the federal shutdown. Should the Fed decide to stick with its bond-buying program at the current rate this week, as is expected, the metals may find some support. The Fed’s bond-buying program is supportive for industrial metal demand as a form of economic stimulus and a source of market liquidity.
**** DJ SHFE Copper Stocks Uptick Offers Signs of 4Q Surplus in China -Barclays — Market Talk ****
By Yue Li @ wsj.com
0253 GMT [Dow Jones] Barclays says an uptick in copper stocks at the Shanghai Futures Exchange (SHFE) may offer some first signs of a domestic surplus dynamic evolving after Chinese refined copper consumption surged to a record level in September. The house put China’s refined copper consumption for last month at a record 950,000 tons (net imports and record-high production minus changes in bonded and SHFE stocks), a nearly 30% year-on-year rise. That helped offset concerns over news of higher funding costs and further nonperforming loans in the Asian nation, the world’s largest consumer of the red metal. Nonetheless, “the critical question is whether all this metal will be absorbed by real demand,” Barclays says. A 20,000-ton rise in SHFE stocks so far this month is the first monthly increase since March, while physical premiums in the domestic market remained largely flat, it adds. “As we noted in September, the sharp drop in investment in the power grid last month suggests at least a moderating effect on Chinese copper demand into Q4.”