China was squarely in focus this morning with Bloomberg reporting “Global stock markets are starting the week with a bang after China’s influential state media stoked bullish enthusiasm…
- A front-page editorial in China’s Securities Times on Monday said that fostering a ‘healthy’ bull market after the pandemic is now more important to the economy than ever.”
- The Shanghai stock index gained 5.7% today while the major stock indexes on Wall Street were up more than 1% late this morning.
- In London, LME 3-mo. copper prices traded as high as $6,143/mt today while 3-mo. aluminum and nickel traded as high as $1,636/mt and $13,400/mt, respectively.
- On the scrap front, Macquarie reports today that “China approved a large import block of copper/aluminum/steel scrap, the largest since 1Q20, probably a response to a scrap shortfall that emerged during lockdown. The China Solid Waste and Chemicals Management Center (CSWCMC) approved additional imports of 176.7kt of high-grade copper scrap; 209.7kt of aluminum scrap and 5kt of steel scrap. Approvals so far in 2020 (9 separate directives) total 718.5kt copper (7% of China’s 2020e total supply); 693.7kt aluminum (2%), 16.5kt steel scrap (tiny contribution; most scrap generated locally). Scrap flows have been scrutinized since 2017 by both the CSWCMC and China’s Ministry of Ecology and Environment, to limit imports of polluting materials.”
- In foreign exchange trading US Dollar Index was down 0.45% today as the euro edged up to around $1.131 while the British pound approached $1.25.
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