Home > November 2017 > Nov 15, 2017 Futures Selling off

Nov 15, 2017 Futures Selling off

November 15th, 2017

Shanghai Futures had Copper and other metals are down big over the weaker econ data and the Copper Smelters coming out saying there is no shortage of Copper Concentrate in 2018. In addition the Pound continues to be sold down and the Risk Off Trade is hiding in the Yen. Brexit talks and US Tax Cuts talks seem to be breaking many hearts. US Futures are down .50% in the second hour of the European session.

November 2017

  • Trading_Nymph

    Reuters coverage on China Copper Meeting..China’s copper smelters insist no concentrate deficit after surprise Shanghai meeting
    Tom Daly, Melanie Burton
    3 MIN READ
    FUZHOU, China/MELBOURNE (Reuters) – China’s top copper smelters held an unscheduled meeting in Shanghai on Tuesday to reaffirm their position that there will be no shortage of copper concentrate supply in 2018 as the key contract renegotiation season hots up.

    The 10 companies on the China Smelters Purchase Team (CSPT) met to conduct a “comprehensive and systematic analysis” of supply and demand dynamics after their return from the recent London Metal Exchange (LME) gathering, an official within the group told Reuters.


    The move came in response to views expressed by miners at LME week, held in London from Oct. 30 to Nov. 3, that there will be a shortage of copper concentrate in 2018, said the official, who declined to be named.

    A shortage of concentrate is negative for smelters as they have to compete for supplies by charging miners less to process the raw material into copper metal.

    Copper prices have risen about 22 percent so far this year, partly driven by strong demand in China, the world’s top copper consumer, providing good margins for miners.

    The CSPT, however, which sets benchmark treatment and refining charges (TC/RCs) for copper concentrate processed in China, maintains that 2018 supply and demand will be “basically balanced, with a slight surplus,” the official said, adding that a deficit “does not exist.”

    An ample supply of concentrate allows the CSPT to set to higher charges. Its fourth-quarter benchmark TC/RCs, at $95 per tonne and 9.5 cents per pound, respectively, were above market expectations.

    This contrasts with deals in the spot market, however, where fees charged by Chinese smelters have ranged from $80 to $90 a tonne and 8 to 9 cents a pound so far this quarter.

    Three mining and trading sources told Reuters of two recent spot processing deals with Chinese smelters agreed for numbers in the mid-$50s, one by a major Chilean producer and another by a smaller Australian miner.

    Mine supply is also vulnerable to disruption next year with around 40 contract renegotiation agreements due.

    Members of the CSPT, which include Jiangxi Copper Co, Jinchuan Group and Tongling Nonferrous Metals Group, are expected to sit down for more talks with miners during Asia Copper Week in Shanghai from Nov. 28-Dec. 1.

    Even without taking into account the impact of China’s environmental crackdown on smelters, “the market remains balanced,” the CSPT official said, adding that the date of the group’s next meeting had not yet been fixed.

  • panther341

    well the dip buyers showed up. wonder if they will get it green by the close.

    spent the morning messing with the new phone. still haven’r managed to download an app or get my email! OMG spent an hour on the phone with tech support this morning then made a trip to the store.

  • panther341
  • Trading_Nymph

    They have been taught well to buy at the european close. lol.

  • Trading_Nymph

    I know. BUT OMG Panther, this Bubble is so big it has to pop. China made this mess (along with the central bankers), they really think they could make a bubble it they could control the air that is released out of it. Bubbles don’t work that way, even with a Govt Controlled Market. They Pop. I do like Gartman’s qoute, it is just the reason why Central Bankers can’t be “We will do Everything” when it all falls apart imho…from Market Watch..“All bear markets begin when economic activity is indeed at its peak just as all great bull markets begin at the depths of economic activity,” he wrote. “It’s always been thus and it shall always be thus. The equity market, by its very definition, anticipates the change in the economy, rising before the economy rises and falling before the economy falls.”

  • Trading_Nymph

    What Apple did you get?

  • Trading_Nymph

    Nice Build on Oil. Us Californians are using less after the pop in price cuz of tax. I think it’s a protest type of thing.

  • Trading_Nymph

    Trump talking before the Market closes….this should be good.

  • Trading_Nymph

    The Pound has been getting dip buyers cuz the UK Govt had a tiny small victory, but they are getting smaller…from telegraph…47m ago
    The closest vote so far, but it’s another tight win for the government.

    MPs have voted against discussing Labour’s new clause 58, which would have ensured that rights derived from EU law covering employment rights, environmental protection, standards of equalities, health and safety standards and consumer standards get enhanced protection after Brexit.

    Faisal Islam ✔@faisalislam
    Closest vote yet – Opposition amendment on emp rights defeated by 12 votes 299-311 -majority shrinking by 4 per division – seems more rebels
    11:03 AM – Nov 15, 2017
    11 11 Replies 48 48 Retweets 58 58 likes
    Twitter Ads info and privacy
    The chamber is now debating Caroline Lucas’s new clause 30, which would transfer the EU Protocol on animal sentience set into UK law, so that animals continue to be recognised as sentient beings under UK law.

  • panther341

    7Plus. I got the iphone for dummies book about 10 minutes ago. Mebbe I can get voice mail and email set up now! I found the Apple website with whatever manual they have online on Monday but …. didn’t help much or maybe I didn’t sit in front of the computer long enough. I need a book I can read elsewhere! LOL

  • panther341

    The yen and Nikkei haven’t helped. Neither has the Dax.

  • panther341

    now convinced I have to go to the Apple Store. cannot even get the phone set up with the dummies book. Last night I could not even call my sister on it. When I first got it I could at least make phone calls – now I can’t even do that.

    Expensive piece of hardware that doesn’t work.

    I miss my old blackberry!

  • panther341

    wow – market up a chunk. CNBC headline: stocks at session highs as House set to vote on tax bill.

    My sister is coming for Thanksgiving. This will be interesting!

    Apple store fixed 2 issues. We’ll see if I can now get the darned thing set up! VZ is ticked at the survey answers I gave about my experience in their store. And their phone support was probably worse.

  • panther341

    WMT up almost 10% on earnings. BBY earnings not so hot.

  • Trading_Nymph

    I can’t even remember the last time I saw a Blackberry lol.

  • Trading_Nymph

    I am glad that your IPhone may be up and running soon. I saw that rally over tax bill and just shook head. Bulls are so giddy beyond giddy.

  • Trading_Nymph

    wonder if Iron is still in it?

  • panther341

    LOL It never broke though! OMG I kept waiting for it to die and it would NOT! Still hasn’t!