Market and product
Base metals prices weak, risk-off mode hits sentiment
"Metal prices are in pretty much risk-off mode with the slump in oil prices and uncertainty in Russia - activity will be minimal now given the time of year. [We are] expecting prices to stay their lower ranges now until the New Year," a trader said.
Oil prices have suck to five-and-and-half-year lows since the OPEC cartel said it would not curb output.
"The oil market has now resumed it downward path, there is nothing new from the FOMC and the physical traders along with the industrial clients will pretty much shut shop at the end of this week until the new year - so it would suggest the metals will simply follow the lead it is given from other market sectors," Malcolm Freeman at Kingdom Futures added.
In its statement on Thursday, the Federal Open Market Committee (FOMC) said it can be "patient in beginning to normalize the stance of monetary policy", it said, adding that this new language is consistent with its previous position that the federal fund rate will remain unchanged for a "considerable time".
Fed chair Janet Yellen defined this as "at least a couple of meetings," meaning the Fed may not signal an increase in rates at least until early next year.
The move was broadly anticipated, a second trader said, with the recovery in the dollar - last at 1.2323 against the euro - sending base metals "lower in light overnight trading, unsettled by bearish oil fundamentals and in turn deflationary risks to the economy".
In data today, the German IFO business climate number at 105.5 was as predicted and up from 104.7 last month. US unemployment claims, the flash services PMI, the CB leading index and the Philly Fed manufacturing index are due later.
Copper at a price of $6,367 per tonne was unchanged on Wednesday's close - it touched $6,268 yesterday, its lowest in three weeks. Business has been routine - around 5,000 lots have changed hands so far.
Stocks fell a net 1,300 tonnes to 170,900 tonnes and cancelled warrants slipped 1,275 tonnes to 30,175 tonnes.
Aluminium at $1,917 was down $4, while stocks increased 9,875 tonnes to 4,271,625 tonnes, following the arrival of 15,850 tonnes into Vlissingen.
Nickel was $8 lower in price at $15,637 but off its earlier one-month low of $15,360. While stocks fell 132 tonnes to 406,722 tonnes, cancelled warrants climbed 6,084 tonnes to 103,008 tonnes.
The sell-off in lead continues - it hit its weakest since August 2012 at $1,836 before settling at $1,866, still down $18. Inventories were 975 tonnes higher at 220,800 tonnes.
Zinc touched its softest since June 17 at $2,107.50 and last at $2,135, a $5 loss. Stocks and cancelled warrants were both 3,575 tonnes lower at 681,700 tonnes and 106,450 tonnes respectively.
The tin price fell $195 to $19,255 - stocks were stagnant but cancelled warrants fell 1,030 tonnes to 2,410 tonnes.
Steel, cobalt and molybdenum were neglected. Cobalt cancelled warrants slipped two tonnes to 155 tonnes while molybdenum stocks and cancelled warrants both fell 12 tonnes to 120 tonnes and zero respectively.
