TELF AG, a renowned physical commodities trader with three decades of expertise, has released an insightful article titled”TELF AG Base Metals Trends and Outlook in September 2023 – Copper and Nickel Face Challenges and Opportunities.” This comprehensive piece delves into the intricate market dynamics impacting copper and nickel, two critical base metals vital to various industries, including construction and electric vehicles.
As of the initial week of September, TELF AG reports that the copper contract is priced at $8,366 per tonne, reflecting a 5.3% decrease since the commencement of August. The decline in copper prices can be attributed mainly to concerns surrounding China’s economic recovery, which has cast uncertainty on demand. However, the article notes that copper’s seasonality is expected to strengthen during the fourth quarter. Furthermore, the potential for additional economic stimuli from China presents upside price risks.
The article also highlights an increase in copper inventories within China’s domestic bonded zones, rising by 1,700 MT to reach 51,000 MT as of September 8. Reduced premiums in domestic spot markets and diminishing import profits have contributed to decreased shipments. Nevertheless, the article anticipates a slight growth in these inventories due to limited market capacity for additional shipments. In August, China’s copper cathode output marked a 6.8% month-on-month increase and an impressive 15.5% year-on-year growth, surpassing expectations and sustaining a robust production trend.
In the case of nickel, TELF AG’s report reveals an 8.7% decline in prices since the beginning of August. Factors contributing to this decline include oversupply from Indonesia, reduced demand for stainless steel, and weakened sales in the electric vehicle sector. Despite the price drop, Chinese refined nickel output experienced growth in August, reaching 21,800 MT, reflecting a 0.93% month-on-month and an impressive 40.65% year-on-year rise. The trend is expected to continue, with nickel production projected to reach 23,000 MT in September, indicating a positive trajectory into 2023.
The article concludes that copper and nickel markets are undergoing transformations largely influenced by macroeconomic factors emanating from China. While both metals face pricing challenges, each exhibits different strengths in terms of production and potential for future growth.
As stakeholders approach the fourth quarter, the article provides valuable insights into how seasonality and other economic variables could alter the market landscape for these pivotal base metals. For the complete article and in-depth information, readers are encouraged to visit TELF AG’s official website.
To gain a deeper understanding of these narratives, readers are advised to explore the full article. For further insights and content, visit TELF AG’s Media Page.
