Reuters commentary (May 11)

The LME market, basic metals futures, slipped on Wednesday. After the US announced that the trade deficit has narrowed unexpectedly, the US dollar has strengthened and the base metals have been under pressure. One trader said, “The market seems very neutral. Investors are a factor in China. Uncertainty. Chinese consumers want to buy metal, but not at current prices." Copper: Three-month copper composite trading in the evening market closed at $ 3,182 per ton, down $ 41 from yesterday. Spot / three-month copper inverse spread widened to 147 USD. After the US announced that its trade deficit unexpectedly dropped to USD 54.99 billion in March, the EURUSD fell by almost 0.75 cents to US$1.2802. The deficit was lower than February’s US$60.57 billion and far below the expected 61.5 billion. Copper sentiment was also hurt by market speculation that copper supply may have been exceeded earlier than expected. Before the International Copper Research Organization (ICSG) announced that in the January-February of this year, the global refined copper production surplus was 24,000 tons. Analysts originally expected this year. There will be a surplus later. Traders said that the situation of sluggish demand is expected to improve before the usual mid-year weak period. Another trader said, "Chinese buyers may be rushing to buy later this month, they hope to be in the refinery. On 6 Before and during the month of maintenance shutdown in July." Aluminium: Three-month aluminum fell by 20 US dollars to 1,755 US dollars per ton. COMEX copper - copper futures closed lower on Wednesday, the US announced trade deficit narrowed in March and far lower In anticipation of boosting the US dollar, copper prices were thus suppressed. One trader said, "The trade data determines the market conditions. The figure is much better than expected, and the US dollar is almost immediately stronger, which has prevented any possible upward trend in copper futures." Indicator July Copper settlement price fell by 1.45 cents to 1.4425 pounds, trading in the range of 1.4330-1.4580. Spot copper prices in May fell by 0.95 cents to US$1.4825 per pound. Far-month contract settlement prices fell by 0.95-1.55 cents. Etc. The estimated volume was only 8,000, but higher than yesterday's 7,414.

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