SMM Daily Review (Oct. 30)

SHANGHAI, Nov. 2 (SMM) --

    Copper:

    SHFE copper prices opened high and fluctuated. Today, the stock prices advanced in A-share market driven up by the launch of Growth Enterprises Market (GEM), and copper prices grew by 2.11% and regained lost ground. The trading volumes declined, and positions slipped as well, indicating the profit-takings by overnight long positions.

    In spot market, spot discounts expanded to RMB 250-300/mt, and the price gap between premium and parity copper narrowed, helping increase the cargo movement of premium copper. Copper prices stabilized at RMB 50,000/mt, and downstream consumers were accepting offers above RMB 50,000/mt gradually, plus stock replenishment for the weekend, spot consumption improved greatly today.

    Aluminum:

    SHFE aluminum prices opened high. SHFE three-month contract aluminum prices fell to RMB 15,250/mt after hitting the daily high of RMB 15,330/mt, and closed at RMB 15,235/mt, with a growth rate of 0.86%, while SHFE spot-month contract aluminum prices stood firm above RMB 15,000/mt again.

    In spot market, today is the last trading day for October, and enterprises faced great capital pressure, so downstream manufacturers held a low interest in purchases. The moving range for aluminum prices in Shanghai region narrowed, and limited imported aluminum ingot was mainly traded at RMB 14,930-14,940/mt today, while spot aluminum traded prices were mainly above RMB 14,950/mt in Shanghai region. Traded prices were RMB 14,920-14,950/mt in Wuxi region in view of higher inventory pressure and inflow of low-priced goods transported by automobiles. At present, base metal prices were still in upward track, and although any upward momentum and room for aluminum prices will be limited, there is a great possibility aluminum prices will advance further after gradually stand firm at an important level.

    Lead:

    In Shanghai lead market, SMM raised lead prices by RMB 100/mt to the range of RMB 15,800-16,000/mt. Frequent fluctuations in LME lead prices and the cautious attitude by downstream consumers were responsible for the failure of actual traded price to hit RMB 15,800/mt, so lead was mainly traded in the RMB 15,700-15,750/mt range. Whether or not lead market sentiment will improve during November will depend on the macro economic conditions.

    Zinc:

    SHFE zinc prices opened high and moved around RMB 16,800/mt, with a growth rate of 2%. However, both trading volumes and positions slid, resulting in neutral trading sentiment in futures market.

    In spot market, the purchasing sentiment by downstream consumers was flat yesterday levels. Spot discounts for #0 zinc against spot-month contract were RMB 150/mt, with traded prices around RMB 16,300/mt. Both smelters and downstream consumers were firm with zinc prices, as smelters were reluctant to move goods when zinc prices were lower than RMB 16,300/mt, while downstream consumers were cautious when zinc prices were higher than RMB 16,300/mt. At present, downstream manufactures still preferred to purchase at lower prices.

    Tin:

    In Shanghai tin market, the wait-and-see attitude dominated downstream consumers during the last trading day during October, while smelters ("Jinhai", "Yunheng", and "YT") raised offers given rebounding LME tin prices. Traders were moving low-end tin to meet end-user demand through its price advantage, and the market sentiment remained lukewarm.

    Nickel:

    In Shanghai nickel market, imported nickel from Russia was traded at RMB 131,500-132,000/mt, while Jinchuan nickel was traded at RMB 132,500-133,000/mt. Sales of low-priced imported nickel was better, but its supply was limited. Limited downstream consumers purchased. Overall trading sentiment remained lackluster.

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