Non-ferrous metals keep traders on their toes

Non-ferrous metals are trading negatively on the London Stock Exchange, and the Greek debt crisis has become a bone of contention for global markets. Investors around the world have been hooked on the Athens drama that could ultimately mean Greece's exit from the euro area. Unfortunately Greece cannot pay the IMF. This tension in the Greek nation keeps investors wary in anticipation of serious risks.

In addition, optimism about the US economy has only increased after Fed officials raised their estimates of the labor market and the economy, pushing the central bank on a path to hike interest rates this year for the first time in nearly a decade, putting pressure on base metals. ... In addition, the debacle in Chinese markets since June 12 led to a sell panic that wiped out the value of some Chinese companies. The reason for this most likely lies in the belated symptoms of China's economic problems after the downturn in activity since last year.

Lead alone was the big winner with an increase of 8.7 percent, while aluminum stocks fell more than 4 percent. On the London Metal Exchange, copper prices traded lower in June 2015, with prices falling about 4 percent as China's refined copper output surged this year, adding to the oversaturated copper market.

LME aluminum prices remain in negative territory for the second month in a row as global mills posted 12.0 percent YoY production growth in May, the fastest growth since 2011. China's production continues to surge, in part due to lower alumina costs. Top producer Rusal said it could idle 200,000 tonnes of capacity, while Alcoa is considering 500,000 tonnes of smelting capacity to do so. In addition, Rusal said the company has revised its forecast that the aluminum market may be in deficit this year, saying it now expects supply and demand to be roughly in balance.

Nickel prices in international markets fell 4.6 percent in June, and global stainless steel production saw 1.1 percent growth in the first quarter of this year, up from 8.3 percent last year, according to data from the International Stainless Steel Forum. ...