Shanghai nickel and zinc tumbled alongside steel on Wednesday, extending losses from the previous session, as traders cut exposure to the sector following cooling industrial production growth and property sales in China.
China’s economy cooled further last month, with industrial output, fixed asset investment and retail sales missing expectations as the government extended a crackdown on debt risks and factory pollution.
“The selloff appeared to be sparked by the weaker-than-expected Chinese industrial production and fixed asset investment data … Both series showed a slowing of growth in the Chinese economy,” said ANZ in a report.
SHFE: Shanghai Futures Exchange nickel slid by limit down of 6 pct, as it corrects from a one-year peak hit on Nov 6. Shfe zinc, used in galvanizing, slid 3 percent.
The gains piled pressure on other metals with Shanghai copper falling 2.2 pct and lead down 2.4 percent.
LME: Losses were also seen in London, with LME nickel giving up 1.2 percent, after careening more than 5 percent in the previous session. Zinc and lead fell 1 percent while copper slid 0.4 percent to $6,733.
REBAR: Shanghai rebar prices fell more than 4 percent at one point as did iron ore, before it finished off the lows down 2.5 pct.
TCRCS: China’s top copper smelters held an unscheduled meeting in Shanghai on Tuesday to reaffirm their position that there will be no shortage of copper concentrate supply in 2018 as the key contract renegotiation season hots up.
ALUMINIUM M&A: Zhongwang USA, an investment firm backed by a Chinese tycoon, has called off its planned acquisition of U.S. aluminum maker Aleris Corp after failing to win U.S. government approval, the companies said on Monday.
BATTERIES: Chinese battery giant Contemporary Amperex Technology Co Ltd (CATL) is planning a $2 billion IPO in Shenzhen, aiming to boost its financial muscle amid a global battle for a share of the country’s fast-growing electric car market.
FREEPORT: An Indonesian police officer was killed and a second wounded on Wednesday, after being shot in the back in an area near Freeport-McMoRan Inc’s giant Grasberg copper mine in the eastern province of Papua, a police spokesman said.
Asian stocks slipped on Wednesday after weaker crude oil prices took a toll on Wall Street, while the euro kept big gains after enjoying a boost from robust German economic growth.
BASE METALS PRICES (01:52 GMT)
Three month LME copper (6,742.5)
Most active ShFE copper (52,880)
Three month LME aluminum (2,093)
Most active ShFE aluminum (15,455)
Three month LME zinc (3,143)
Most active ShFE zinc (25,140)
Three month LME lead (2,462)
Most active ShFE lead (18,650)
Three month LME nickel (11,730)
Most active ShFE nickel (95,090)
Three month LME tin (19,365)
Most active ShFE rin (142,560)
BASE METALS ARBITRAGE
LME/SHFE COPPER (LMESHFCUc3) 698.25
LME/SHFE ALUMINIUM (LMESHFALc3) -656.28
LME/SHFE ZINC (LMESHFZNc3) 516.11
LME/SHFE LEAD (LMESHFPBc3) -992.67
LME/SHFE NICKEL (LMESHFNIc3) 2,714.25