Reuters Review (5-11)

LME market: Base metal futures fell on Wednesday. After the US announced that the trade deficit has narrowed unexpectedly, the US dollar has strengthened and the base metals have been under pressure. One trader said, "The market seems very neutral. Investors are uncertain about China's factors. Chinese consumers want to buy metals, but not at current prices." Copper: Three-month copper composite trading in the evening ended at $3,182 per ton, down $41 from yesterday. The spot/three-month copper inverse spread widened to $147. After the US announced that its trade deficit in March unexpectedly dropped to US$54.99 billion, the euro fell nearly 0.75 cents to US$1.2802 against the US dollar. The deficit was below the US$60.57 billion in February and far below the expected 61.5 billion. Due to market speculation that copper supply may be damaged earlier than expected by the excess. Before the International Copper Research Organization (ICSG) announced that in January-February this year, the global refined copper production surplus of 24,000 tons. Analysts had expected to later this year There will be excesses. Traders said that the situation of sluggish demand is expected to improve before the usual mid-year weak period. Another trader said, "Chinese buyers may be rushing to buy later this month, they hope to be at the refinery at 6 We will establish the inventory before the suspension of production and maintenance in July." Aluminium: Three-month aluminum fell by US$20 to US$1,755 per ton. COMEX Copper: Copper futures closed lower on Wednesday, and the US’s trade deficit narrowed in March and far below expectations. The dollar was used to dampen copper. One trader said, "The trade data determines the market conditions. The figure is far better than expected, and the dollar is almost immediately stronger, which has prevented any possible upward trend in copper futures." The July July copper settlement price fell 1.45 cents to 1.4425 pounds, intraday to midday 1.4330-1.4580. Spot copper prices in May fell 0.95 cents to 1.4825 pounds per pound. Far-month contract price fell 0.95-1.55 cents. Volume was only 8,000, but higher than yesterday's 7,414.