TELF AG’s Analysis Sheds Light on September 2023 Base Metals Trends

Last Updated on: 21st November 2023, 08:53 pm

TELF AG, a seasoned physical commodities trader with three decades of experience, unveils an insightful article titled “TELF AG Base Metals Trends and Outlook in September 2023 – Copper and Nickel Face Challenges and Opportunities.” This article delves into the intricate market dynamics affecting copper and nickel, two pivotal base metals with extensive applications in industries ranging from construction to electric vehicles.

As of the first week of September, TELF AG reports that the copper contract was priced at $8,366 per tonne, marking a 5.3% decline since the start of August. The dip in copper prices can be attributed primarily to concerns surrounding China’s economic recovery, which has introduced uncertainties regarding demand. However, the article notes that seasonality is anticipated to bolster copper in the fourth quarter. Additionally, potential further economic stimuli from China could present upside price risks.

The article also highlights an increase in copper inventories within China’s domestic bonded zones, which rose by 1,700 metric tonnes to 51,000 metric tonnes as of September 8. Reduced premiums in domestic spot markets and diminishing import profits have contributed to decreased shipments. Nevertheless, the limited market capacity for additional shipments is expected to result in a modest uptick in these inventories. Notably, China’s copper cathode production in August exceeded expectations with a 6.8% month-on-month increase and a 15.5% year-on-year growth, indicating a robust production trend.

In TELF AG’s review, Nickel prices have declined by 8.7% since the beginning of August, owing to oversupply from Indonesia, reduced demand for stainless steel, and a slowdown in electric vehicle sales. Despite the price drop, Chinese refined nickel output surged in August, reaching 21,800 metric tonnes, marking a 0.93% month-on-month increase and a significant 40.65% year-on-year growth. The article anticipates that nickel production will continue its upward trajectory, reaching 23,000 metric tonnes in September and suggesting a positive outlook for 2023.

In summary, the article underscores that copper and nickel markets are undergoing changes primarily influenced by macroeconomic factors emanating from China. While both metals face pricing challenges, they each exhibit distinct strengths in terms of production and future growth potential.

As stakeholders approach the fourth quarter, the article offers valuable insights into how seasonality and other economic factors could reshape the market dynamics for these critical base metals. For the complete article and further details, please visit TELF AG’s official website.

For a more comprehensive understanding of these narratives, readers are encouraged to explore the full article. For additional insights and content, visit TELF AG’s Media Page.

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