scholarly journals A Speculative Efficiency Analysis of the London Metal Exchange in a Multi-Contract Framework

2011 ◽  
Vol 3 (1) ◽  
Author(s):  
Sascha Werner Otto
Keyword(s):  
Efficiency Analysis ◽  
Metal Exchange ◽  
London Metal Exchange

scholarly journals Implicit Interpretation of Indonesian Export Bans on LME Nickel Prices: Evidence from the Announcement Effect

Risks ◽  
2021 ◽  
Vol 9 (5) ◽  
pp. 93
Author(s):  
Byungkwon Lim ◽  
Hyeon Sook Kim ◽  
Jaehwan Park
Keyword(s):  
Metal Exchange ◽  
London Metal Exchange ◽  
Announcement Effect ◽  
Knowledge Gaps ◽  
Indonesian Government ◽  
Interesting Topic ◽  
The Impact

Forecasting of LME (London Metal Exchange) nickel prices remains an interesting topic but lacks consensus. This study aims to fill knowledge gaps by demonstrating the announcement effect of export bans by the Indonesian government. This article focuses on Indonesia because Indonesia produces more than 60% of global nickel ore. We identified the sequence of two episodes in which Indonesian export bans of nickel ore appeared to increase LME nickel prices through the Romer and Romer (1989) approach. The impact of the Indonesian export ban in 2014 is somewhat larger than that of 2019. The shock on the LME nickel market in 2014 was sustained for a while after the ban was implemented. We believe that this is the first export ban that has had unexpected effects within the market.

On the efficiency of the London metal exchange

1988 ◽  
Vol 14 (3) ◽  
pp. 180-182 ◽  
Author(s):  
C. Paul Hallwood
Keyword(s):  
Metal Exchange ◽  
London Metal Exchange

Surging zinc price remains vulnerable to a correction

2017 ◽  
Keyword(s):  
North Korea ◽  
Metal Exchange ◽  
Base Metals ◽  
London Metal Exchange ◽  
Content Type ◽  
Northern Chinese ◽  
Zinc Concentrate ◽  
Zinc Deposits

Subject Zinc market Significance The zinc price rose by more than 50% last year -- the best performance of all base metals traded on the London Metal Exchange (LME). After approaching a ten-year high of 2,900 dollars per tonne in November, the price remains sharply higher than its low of 1,500 a year ago. Mine closures in Australia and Ireland removed 1.1 million tonnes of zinc from the market, limiting the increase in output last year to an estimated 0.5%. In contrast, demand rose strongly, led by Chinese infrastructure spending, which accounts for around one-quarter of zinc demand. The 2016 deficit was estimated at 400,000-600,000 tonnes, the fifth year of shortfalls. Impacts Northern Chinese smelters are increasingly turning to North Korea for zinc concentrate, making the country China's third-largest supplier. Namibia's Skorpion mine may close two years earlier than forecast, removing an estimated 140,000 tonnes of refined metal from the market. South Africa's Gamsberg mine, one of the world's largest undeveloped zinc deposits, is due to begin production in 2018. Rising prices are attracting more buyers for the mines that Belgium-based producer Nyrstar has for sale under its restructuring programme.

Global nickel oversupply will intensify in 2016

2016 ◽  
Keyword(s):  
Stainless Steel ◽  
Austenitic Stainless Steel ◽  
Market Share ◽  
The Philippines ◽  
Significant Part ◽  
Metal Exchange ◽  
Base Metals ◽  
London Metal Exchange ◽  
Content Type ◽  
Near Term

Subject Nickel market tests unprecedented lows. Significance The price of nickel, viewed initially as a favourite metal for 2015, has fallen 40.5% overall last year, making it the worst-performing of the London Metal Exchange (LME)'s six base metals. At current levels, as much as 60% of the global production base is unprofitable and, if commercial rationale were to prevail, a significant part of this overcapacity should be closed. Instead, the supply response has been slow, boosting inventories. Impacts Low nickel prices will bolster the market share of austenitic stainless steel to the detriment of low-nickel alternatives. Lianyungang, China's leading port for nickel ore, will not be able to replace Indonesian volumes with imports from the Philippines. The uptick in merchant premia charged above the LME price in the European and US markets points to near-term stabilisation.

Tech advances will bolster long-term copper demand

2019 ◽  
Keyword(s):  
Environmental Protection ◽  
Environmental Protection Agency ◽  
Copper Price ◽  
Metal Exchange ◽  
London Metal Exchange ◽  
Protection Agency ◽  
Content Type ◽  
Copper Producer ◽  
The Us

Subject The copper market. Significance The copper price has picked up by nearly 9% this year after weakening unexpectedly through 2018, losing 17.5%. Unusually, the slide was accompanied by metal inventories dropping steadily on the London Metal Exchange, Comex and Shanghai Metals Exchange. Stocks peaked at 900 kilotonnes (kt) in March 2018 before plummeting by 65% to start the year at the lowest since 2014. This rare combination of falling inventories and weakening prices has yet to find a viable explanation. Impacts Zambian import duties on concentrate has prompted 366 kt of capacity to be shutdown, reducing supply on the market. Boosting the outlook for US output, the US Environmental Protection Agency has approved Hudbay’s 112-kt-per-year Rosemont mine in Arizona. Chilean miner Codelco is spending 4.9 billion dollars to mine underground at Chuquicamata, aiming to extend operations by 40 years. Indonesia, the ninth largest copper producer, is to redirect output towards local smelters; it has cut annual export quotas by 25-75%.

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