SMM Daily Review (Nov. 4)

SHANGHAI, Nov. 5 (SMM) --

    Copper:

    SHFE copper prices slipped after surged, but SHFE three-month contract copper prices found solid support at RMB 51,000/mt, with trading volumes up. SHFE three-month contract copper prices climbed to RMB 51,400/mt in the afternoon, but still faced resistance at RMB 51,300/mt, with positions down more than 10,000 lots. Technically, SHFE three-month contract copper prices will stand firm at 10-day moving average line today. SHFE spot-month contract copper prices tried to stabilize at RMB 51,000/mt, but mainly moved below daily moving average line in a narrow range.

    In spot market, a number of optimistic market players bought futures and sold off spot goods in the morning amid brisk market sentiment, and spot discounts for premium copper like "ENM" and goods from Jiangxi Copper were RMB 180-200/mt, while wealth private person showed special attention to premium copper, reducing spot discounts for premium copper to RMB 150/mt. In this context, spot discounts for parity copper stabilized at RMB 250/mt. The market players became more confident in market outlook.

    Aluminum:

    SHFE aluminum prices opened high, but later slipped. SHFE three-month contract aluminum prices moved below daily average line in the morning, and then increased rapidly in the afternoon, but later fell from RMB 15,300/mt, with positions up 5,000 lots and trading volumes up 1.8%. SHFE spot-month contract aluminum prices failed to break through RMB 15,000/mt, and dipped below daily moving average line, but with limited downward room.

    In spot market, spot discounts were firm at RMB 50-70/mt, and cargo-holders kept offers firm above RMB 14,900/mt. However, CHALCO moved goods at RMB 14,900/mt, dampening market sentiment. In this context, traders reduced prices to sell goods, leaving the lowest traded prices at RMB 14,880/mt, and prices for imported aluminum from India dropped to RMB 14,860/mt as well. Transactions were mainly done by arbitrageurs, with limited deals done by downstream consumers.

    Lead:

    In Shanghai lead market, SMM lead prices remained unchanged. Market prices moved around RMB 15,600/mt. Spot discounts will fall to RMB 0/mt from RMB 100/mt tomorrow, if LME lead prices show positive performance tonight.

    Zinc:

    SHFE zinc prices soared to RMB 17,000/mt, with great resistance, and mainly moved below daily moving average line, with positions and treading volumes up. SHFE spot-month contract zinc prices received support at RMB 16,500/mt.

    In spot market, SMM #0 zinc prices were RMB 16,300-16,400/mt, and smelters kept their offers firm at RMB 16,450-16,500/mt upon their optimistic sentiment, but downstream consumers hoped lower prices. However, it seems zinc prices have found solid support at RMB 16,000/mt recently. Zinc prices are expected to stabilize at RMB 16,500/mt tomorrow, helping push up trading sentiment.

    Tin:

    In Shanghai tin market, domestic market remained stable due to no changes in LME tin prices. Smelters were confidence in tin prices despite of weak consumption. Transactions of low-end tin remained brisk, stimulating the purchasing interest at lower price below RMB 116,000/mt. 

    Nickel:

    In Shanghai nickel market, offers for imported nickel stabilized at RMB 130,000/mt, but limited deals were made. Offers for goods from Jinchuan Group were only RMB 130,500/mt, with sufficient market supply. In this context, goods from Jinchaun Group had price advantage compared with imported nickel, but overall trading sentiment remained weak.

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