LUGANO, SWITZERLAND, September 25, 2023 - TELF AG, a physical commodities trader with 30 years of experience, announced the publication of an incisive article titled "TELF AG Base Metals Trends and Outlook in September 2023 – Copper and Nickel Face Challenges and Opportunities." The article delves into the complex market dynamics affecting copper and nickel, two essential base metals for various industries, including construction and electric vehicles.
According to TELF AG, as of the first week of September, the contract for copper stood at $8,366 per tonne, down 5.3% since the start of August. The decrease in copper prices is primarily due to concerns over China’s economic recovery, which has caused uncertainty over demand. Nevertheless, seasonality is expected to strengthen for copper in the fourth quarter. In addition, further economic stimuli from China could present upside price risks.
The article also reports an increase in copper inventories in China’s domestic bonded zones by 1,700 MT to 51,000 MT as of September 8. Decreased premiums in domestic spot markets and losses in import profits have led to reduced shipments. However, a slight growth in these inventories is expected due to limited market capacity for additional shipments. In August, China’s copper cathode output marked a 6.8% month-on-month increase and a 15.5% year-on-year growth, exceeding expectations and maintaining a strong production trend.
As per TELF AG’s recap, Nickel prices declined by 8.7% since the beginning of August due to an oversupply from Indonesia, reduced stainless steel demand, and weakening electric vehicle sales. Despite the drop in prices, Chinese refined nickel output in August increased to 21,800 MT, a 0.93% month-on-month and 40.65% year-on-year rise. Nickel production is projected to reach 23,000 MT in September, indicating a continuation of this upward trend into 2023.
The article concludes that copper and nickel markets are experiencing shifts, largely influenced by macroeconomic factors from China. While the metals face challenges in pricing, each also shows different strengths in terms of production and potential for future growth.
As stakeholders approach the fourth quarter, the article provides some insights into how seasonality and other economic factors could change the market landscape for these crucial base metals. For the complete article and further information, please visit TELF AG’s official website.