Home > May 2017 > May 4, 2017 CHINA Commodities and basic metals encountered “black Thursday”, iron ore, hot volume limit, rebar was also limit Down

May 4, 2017 CHINA Commodities and basic metals encountered “black Thursday”, iron ore, hot volume limit, rebar was also limit Down

Well, we again see the Theme of 2017 playing out…the Slow down of China. China Govt has warned us, the housing prices are falling, It was BLACK THURSDAY tonight in the Basic Metals. Limit down in Iron Ore, Rebar, etc.. Shanghai Copper continued huge sell off.  Japan is closed for holiday again so their traders aren’t around so much. Iron Ore out of Australia Limit Down tonight too. Huge Huge SELL OFF.

May 2017

  • Trading_Nymph

    Current status of Copper Sell Off… MELBOURNE, May 4 London copper fell on Thursday
    after a big build-up in exchange stocks and as traders priced in
    two U.S. interest rate rises expected this year that could curb
    interest in dollar-denominated metals.
    Concerns that heat is evaporating from China’s economy have
    added to downside pressure on metals, exacerbated by China’s
    weaker Caixin PMI numbers, said Kingdom Futures in a report.
    “Later today there is a mass of U.S. data including key
    employment numbers, durable goods and factory orders and if
    these also fall below expectations it would be reasonable to
    expect another wave of afternoon selling.”

    FUNDAMENTALS
    * LME COPPER: Three-month copper on the London Metal
    Exchange edged down 0.2 percent to $5,590 a tonne by
    0520 GMT, having earlier hit $5,567 a tonne, the weakest since
    April 20. Prices extended losses from the previous session when
    they recorded the biggest one day drop in 18 months.
    * LME STOCKS: LME copper stocks surged by 31,250 tonnes, the
    most recent data showed, dousing concerns over falling supply.

    * SHFE COPPER: Shanghai Futures Exchange copper
    fell 2.6 percent to 45,470 yuan ($6,591) a tonne.
    * U.S. RATES: The U.S. Federal Reserve kept interest rates
    unchanged on Wednesday and downplayed weak first-quarter
    economic growth while emphasising the strength of the labour
    market, in a sign it was still on track for two more rate rises
    this year.
    * CHINA STEEL: Shanghai zinc and nickel
    fell more than 2 percent tracking weakness in China’s steel
    industry. Chinese iron ore futures tumbled more than 7 percent
    on Thursday, their biggest single-day fall in more than five
    months, on concerns that demand for the raw material was at risk
    from slower steel consumption.
    * CHINA ECONOMY: Growth in China’s services sector cooled to
    its slowest in almost a year in April as fears of slower
    economic growth dented business confidence, even as cost
    pressures eased, a private survey showed on
    Thursday.
    * EUROZONE ECONOMY: The euro zone economy started the year
    with robust growth that outstripped that of the United States
    and set the stage for a strong 2017, preliminary estimates
    showed on Wednesday.
    * COPPER: Copper output in Democratic Republic of Congo,
    Africa’s top producer, hit 274,316 tonnes in the first quarter
    of 2017, a more than 20 percent increase over the same period
    last year, the central bank said on Wednesday.
    * GLENCORE: Mining-trading group Glencore Plc has
    hired the Bank of Nova Scotia to sell a portfolio of
    royalty assets, including one for the Antamina copper-zinc mine
    in Peru, four people familiar with the process have told
    Reuters.
    * COM

  • Trading_Nymph

    From CHina Press.
    iron, steel, hot rolled, Shanghai Copper , Shanghai zinc , Shanghai lead fell a week low;
    coking coal hit a nearly four months low;
    coking coal nearly three months low;
    Shanghai nickel hit a 10-month low.

  • Trading_Nymph
  • panther341

    reply to you on yesterday about those century bonds. I have been watching that discussion. LOL

    in meantime May the Fourth be with you. I had some storm damage overnight.

  • panther341

    quick note about your gaps from last week: both cash and futures tried to fill the higher of those 2 gaps from last week, and failed. So part of the gap #2 still exists. Technicians call this “look below and fail” – in other words nobody joined the bear party. First, lower gap: never been touched yet.

  • panther341

    gold joining the metals bear party. silver not down as much but silver has been down 8 consecutive trading days and 13 out of 14 days. That’s pretty spectacular.

    Oil as well. oil below the price from day of OPEC official announcement last November.

    also the tractor beam between oil and equities presently broken.

  • Trading_Nymph

    And a May 4th back to you Strong Jedi Warrior…lol. Such strange weather we have been having for sure.Well the 100 year Japanese Bond would give Kuroda something to buy, lol.

  • Trading_Nymph

    Well commodities did,that was SO ugly last night. Lot of Chinese Speculators lost a lot money last night for sure!

  • Trading_Nymph

    What amazes me is that our overall market is SO calm, barely down. But, I am thinking about what Kyle Bass told Bloomberg..Even Massive liquidity problems in 2007 took until mid 2008 to really go atomic

  • panther341

    oil – limits to be extended but not reduced. Meeting in 3 weeks in Vienna. http://www.reuters.com/article/us-opec-oil-idUSKBN1801YB

    Have a double issue in US – increased production and drilling, plus lower demand. Storage issue hasn’t been solved.

  • Trading_Nymph

    Plus if UN orders a Oil Embargo against N Korea, we have a big buyer of Chinese Oil going away..ouch. I think the China Teapot Refiners have bought enough Oil to fill every teapot in China, lol.

  • Trading_Nymph

    Watching CNBC not on Mute right now, Brothers are talking about huge call option buying in SNAP going into earnings next week. I guess everyone knows their earnings already..lol.

  • Trading_Nymph

    FWIW..totally agree with global times on this,…Since the global financial crisis, the size of debt issued by non-financial enterprises from the emerging market economies in offshore markets has grown rapidly. Many enterprises from the emerging markets conducted arbitrage transactions by issuing bonds on the offshore markets through their offshore subsidiaries. According to the Institute of International Finance, from 2014 to 2018, the amount of corporate debt issued by enterprises in the emerging economies that needs renewal is estimated to reach $1.68 trillion, of which about 30 percent is priced in the US dollar. If the greenback enters into an appreciation cycle, the costs of renewing these emerging countries’ bonds will increase sharply, pointing to growing debt risks accordingly.

  • Trading_Nymph

    USD/Swissy is down .72%…intervention could be popping up

  • panther341

    WOrking on clean up outside, hampered by that finger from 2 months ago! I keep coming in for a rest and to check where oil and gold are. I was afraid to be short either one when I couldn’t sit at the computer after the move both have had.

    In the meantime, even WSJ is talking about 6 FED speakers tomorrow. LOL 5 is not enough.

    http://www.marketwatch.com/story/fed-returns-to-pulpit-with-six-speeches-friday-2017-05-04?mod=econpol_twitter_new&link=sfmw_tw