London 09/11/2016 - Base metals apart from tin ended LME trading on Wednesday, November 9 in positive territory after Donald Trump confounded opinion polls to win the US presidency
The three-month copper price peaked at $5,433 per tonne earlier, its strongest since June 2015. It concluded at $5,411 per tonne, still up $175.50 on Tuesday's close.
Copper is up around 10% so far in November, its biggest monthly rise since October 2015. Volumes on Select were extremely high - more than 53,000 lots of copper changed hands by
Trump's promise to spend massively to overhaul the US' crumbling transport, telecommunications, water supply and electricity systems will boost demand for metals, market observers said.
“We think investors see a Trump presidency as a reason to boost their exposure to commodities (especially industrial metals) to play a more pronounced reflation cycle - Trump seems inclined to boost spending to stimulate the US economy,” Metal Bulletin analyst Boris Mikanikrezai said.
Another possible explanation for today's increases in metal prices could be the risk of trade conflicts with China under a Trump administration that would hamper the country's ability to export, Commerzbank noted.
“In this case the markets would presumably be less amply supplied. However, this would affect steel and aluminium more than copper,” the bank added.
In stock moves, 15,775 tonnes of copper were placed back on warrant mainly in listed warehouses in Asia, reducing cancelled warrants to 112,775 tonnes. Inventories fell a net 9,025 tonnes to 282,600 tonnes.
“Can we expect any positive base metal tailwinds from a Trump presidency over the mid-term? It’s difficult to figure out right now,” Citi’s analyst Nell Agate said.
"While Trump threatened to scrap a number of existing free trade agreements, as well as labelling China as a currency manipulator during his campaign, a lot remains to be seen until he is formally inaugurated in January 2017,” she added.
Three-month aluminium peaked at $1,760.50 per tonne, its strongest since June 2015. The price ended at $1,753 per tonne, still up $22.
Stocks fell 4,125 tonnes to 2,116,600 tonnes and cancelled warrants fell 2,875 tonnes to 774,225 tonnes.
The three-month nickel price hit its highest since July 2015 at $11,660 per tonne before concluding at $11,575 per tonne, up $315. Stocks slipped 192 tonnes lower to 363,162 tonnes and cancelled warrants rose 1,152 tonnes up 122,826 tonnes.
The three-month zinc price ended at $2,490/2,491 per tonne, up $12. Stocks fell 775 tonnes to 447,800 tonnes.
The three-month lead price at $2,141 per tonne was up $16 and around its highest since September. Stocks and cancelled warrants were both 325 tonnes higher at 187,725 tonnes and 31,400 tonnes respectively.
The three-month tin price ended at $21,275 per tonne, down $270. Stocks rose 150 tonnes to 3,035 tonnes.
Still billet was last indicated at $300/325 per tonne and cobalt and molybdenum at $28,750/29,250 and $14,750/15,250 respectively.
(Additional reporting by Kathleen Retourne, editing by Mark Shaw)