Mining News -The most-traded April copper contract on the SHFE stood at 52,660 yuan ($8,300) per tonne as of 12.37pm Shanghai time, down by 130 yuan from the previous session’s close.
A similar plunge was also seen in the most-traded April aluminium contract on the SHFE, which stood at 14,095 yuan – down 10 yuan from the previous session’s close. About 106,234 lots of the contract have changed hands so far.
The strong performance of US dollar has weighed on the red metal in the first trading day after the week-long Chinese New Year holiday.
The US dollar index has maintained a sustained rally since February 16, and hit as high as 90.229 at 15.06pm Shanghai time.
“The US dollar found its feet overnight rallying relatively broadly after finally breaking its unusual, negative correlation with US yields.” ANZ Research said.
In addition, the rising stocks also kept the copper prices subdued.
Before the Chinese New Year holiday started on February 15, the SHFE copper inventory increased by 11,627 tonnes – or 6.2% – to 197,759 tonnes in only three days as of February 14.
“China copper stocks may increase after the Chinese New Year holiday, and consumption won’t improve until mid-March,” Citic Futures Research said.
Meanwhile, the most-traded May nickel contract plunged 540 yuan to 102,950 yuan per tonne amid consolidation, with around 171,930 lots traded so far.
Other metals lower
The SHFE March zinc contract price eased by 350 yuan to 26,300 yuan per tonne.
The SHFE May tin contract price dived 1,190 yuan to 147,690 yuan per tonne.
The SHFE March lead contract slipped 65 yuan to 19,255 yuan per tonne.
Currency moves and data releases
The dollar index was down by 0.03% to 90.09 as of 12.37pm Shanghai time.
In other commodities, the Brent crude oil spot price was down by 0.25% to $64.86 per barrel as of 12.37 pm Shanghai time.
In equities, the Shanghai Composite was down by 2.06% to 3,264.75 as of 12.37 pm Shanghai time.
In the UK today, the CBI retail sales report and Q4 GDP data will be announced.
The ECB will release of the Accounts of its Jan 24-25 meeting.
Initial jobless claims are out in the United States and Canada releases retail sales figures.