LME Base Metals Finished Down, Interest Lacking
The base metals prices on the London Metal Exchange (LME) slipped on a lack of interest Wednesday.
International creditors (ECB, IMF) and Greek government were still struggling to bridge the debt gaps Wednesday, which weighted on the LME base metals prices.
China is speeding up efforts to internationalize its commodity markets all by itself, demand for metals has softened and regulatory hurdles are forbidding. The HKEx has had an icy reception from the Shanghai Futures Exchange (SHFE), vital for any commodities link.
“Implementing a ‘commodities connect’ is much trickier than with stocks, since you are talking about a physical product with the need to be able to take delivery, as opposed to just a piece of paper,” said an analyst at Credit Suisse in Hong Kong.
LME volumes fell 6% in May, and it needs new products to boost activity. Its “mini metals” contracts, 20% the size of the main LME contracts and aimed at retail investors, have met a lukewarm response.
“Base metals are new to Hong Kong’s markets and new products often take time to develop, so we are taking a long-term view with our Asia commodities contracts,” HKEx said in a statement.
But progress has been limited since it bought the LME in Y 2012, and it also said its immediate focus was another stock trading link with Shenzhen.
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The 3-month unofficial Copper price was up 42, or 0.73%, to 5,816/tonne.
The 3-month unofficial Aluminium price lost 3.5, or 0.20%, to 1,725/tonne.
The 3-month unofficial Lead price was up 4, or 0.22%, to 1,805/tonne.
The 3-month unofficial Zinc price lost 3, or 0.15%, to 2,054/tonne.
The 3-month unofficial Nickel price lost 50, or 0.39%, to 12,737.5/tonne.
The 3-month unofficial Tin price lost 12.5, or 0.08%, to 15,275/tonne.
Stay tuned…
HeffX-LTN
Paul Ebeling
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