February 7, 2018 / 4:59 AM / 10 months ago

METALS-London metals recover as stock markets rally; options expiry looms

 (Changes quote, updates prices)
    BEIJING, Feb 7 (Reuters) - London base metals on Wednesday
recovered some of the ground lost in the previous session as
global equities bounced back after days of sharp falls, although
Shanghai metals fell across the board. 
    Analysts said metal prices were holding up well given the
recent share market volatility, with London copper holding above
the $7,000 a tonne mark that has only been breached on three
trading days so far this year. 
    "The metals reacted by basically following the global equity
markets and also trying to focus in on which strike price level
they will settle at for today's declarations," Kingdom Futures
CEO Malcolm Freeman wrote in a note.
    Traders of LME calls and puts, the right to buy or sell a
contract at a fixed price later, have to decide whether to
exercise their options on the first Wednesday of each month.
    
    FUNDAMENTALS
    * LME COPPER: Three-month copper on the LME was up
0.3 percent at $7,100 a tonne by 0702 GMT, partly recovering
from a 1.3 percent drop in the previous session. It had gained
as much as 1 percent in early trade on Wednesday.
    * SHFE COPPER: The most-traded March copper contract on the
Shanghai Futures Exchange closed down 0.8 percent at
52,710 yuan ($8,423.49) a tonne. 
    * OTHER METALS: LME zinc, nickel and
aluminium gave up early gains of 1 percent to 2 percent
to trade half a percent to 1 percent higher; lead was
the laggard, declining 0.9 percent.
    * FREEPORT: Freeport-McMoRan Inc reinstated its cash
dividend on Tuesday, three years after suspending it, reflecting
a stronger financial position, improved market conditions and a
positive outlook for cash generation.
    * ZIMBABWE: Zimbabwe has the potential to be a leading
producer of lithium, which has so far attracted more interest
than any other of its minerals, Zimbabwe's new Minister of Mines
and Mining Development Winston Chitando said on
Tuesday.
    * MARUBENI: Japanese trading house Marubeni Corp on
Tuesday posted a 53 percent jump in April-December net profit
and lifted its full-year forecast by 18 percent, boosted by
higher copper and coal price.
    * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    * Asian share markets took back some of their earlier gains
on Wednesday as investors were unnerved by a drop in U.S. stock
futures, underscoring lingering anxiety following steep losses
in global equities over the past few days.    
    PRICES    
       
 BASE METALS PRICES                        0701 GMT
 Three month LME copper                        7108
 Most active ShFE copper                      52710
 Three month LME aluminium                   2190.5
 Most active ShFE aluminium                   14200
 Three month LME zinc                          3480
 Most active ShFE zinc                        26475
 Three month LME lead                          2597
 Most active ShFE lead                        19200
 Three month LME nickel                       13545
 Most active ShFE nickel                     102260
 Three month LME tin                          21810
 Most active ShFE tin                        151230
                                                   
 BASE METALS ARBITRAGE                             
 LME/SHFE COPPER              LMESHFCUc3     1037.6
 LME/SHFE ALUMINIUM           LMESHFALc3   -1632.97
                                          
 LME/SHFE ZINC                LMESHFZNc3     631.18
 LME/SHFE LEAD                LMESHFPBc3     -427.5
 LME/SHFE NICKEL              LMESHFNIc3    1683.85
                                          
 
($1 = 6.2575 Chinese yuan)

    
 (Reporting by Tom Daly; Editing by Subhranshu Sahu and Richard
Pullin)
  
 
 
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