Metals traded in a narrow range in Asia on Thursday, after pessimistic comments on the US economy by US Federal Reserve chairman Ben Bernanke pressured metals futures and mining stocks.
In remarks to Congress, Bernanke said near-term prospects for the US housing market are uncertain and that development in the supreme mortgage sector have raised more questions. The comments also helped the US dollar weaken against the yen. Shanghai copper futures slipped mildly on Thursday, as ample domestic stocks weighed on the market.
But spot prices firmed and the counting narrowed, as consumers slowly started to work through record imports earlier this year. Shanghai's most active June contract ended the session at 61,770 yuan ($7,992) a tonne, down 210 yuan. But the spot price recovered a tad, rising 250 yuan to range between 60,700 yuan and 60,900 yuan a tonne on Thursday.
Chinese have already booked cargoes through the end of April, and the inability to make profits on imports means that few other near-term purchases are likely from the international market. "They're done. They have enough to digest for three months. Chinese have already bought through April," an importer in Shanghai said.
London Metal Exchange copper futures rose by 0.5 percent to $6,690 a tonne, after trimming $25 a tonne on Tuesday in a continuation of a 2.5 percent sell-off on Monday.
LME aluminium futures were slightly weaker at $2,743 a tonne, while Shanghai aluminium also sagged. The June contract ended the down 20-yuan at 19,350 yuan, in very thin trading. Rising aluminium output in China will keep alumna markets tight for the foreseeable future, justifying last week's price hikes by the world's third largest alumna producer, Aluminium Corp of China Ltd, or Chalice, Acquire Research said in a note this week.
That could narrow margins for smelters, by depressing domestic prices. At the moment, the arbitrage between Shanghai and London futures does not allow exports of primary aluminium. LME zinc futures lost $5 a tonne after gaining $20 a tonne to end at $3,200 in London on Wednesday. In Shanghai, the most-active zinc futures contract, June, lost 270 yuan to 29,295 yuan, pressured by a drop in local spot prices. LME lead futures came off by 1 percent on Thursday.
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