SMM Daily Review (Nov. 5)

SHANGHAI, Nov. 6 (SMM) --

    Copper:

    SHFE copper prices moved narrowly below daily moving average line, with positions and trading volumes down slightly. SHFE spot-month contract copper prices still received support from RMB 50,500/mt. In spot market, premium copper still held price advantage, with spot discounts of RMB 150/mt, while market supply of parity copper declined due to large losses, narrowing spot discounts to RMB 200/mt, and transactions were moderate. Copper prices will consolidate in the RMB 50,000-51,000/mt range in the short term.

    Aluminum:

    SHFE aluminum prices hovered around daily moving average line, and SHFE three-month contract aluminum prices still faced pressure at RMB 15,200/mt, with positions down more than 1,400 lots, while SHFE spot-month contract aluminum prices failed to break through RMB 14,950/mt, with significant resistance from 5-day moving average line. In spot market, offers quoted by traders were RMB 14,900-14,910/mt in the morning, with discounts of RMB 50/mt, but today offers for imported aluminum ingot from Russia were RMB 14,860/mt, dampening the market consumption. Limited traders reduced prices for low-grade aluminum to RMB 14,890/mt after 11:00, but transactions remained weak. Aluminum prices are expected to fall further from RMB 15,000/mt due to weak consumption.

    Lead:

    In Shanghai lead market, SMM lead prices remained unchanged for four consecutive days, but traders had interest in sell-offs, expanding spot discounts slightly to RMB 150/mt, and traded prices fell to RMB 15,500/mt as well. The mainstream traded price range for domestic lead prices will fall further if LME lead prices continue to fluctuate. Traders will not likely to keep offers firm for a long time due to sufficient downstream inventories. 

    Zinc:

    SHFE zinc prices opened high, but were still below daily moving average line. SHFE three-month contract zinc prices met resistance at RMB 17,000/mt, while SHFE spot-month contract zinc prices tried to stand firm at RMB 16,500/mt. In spot market, SMM #0 zinc prices remained unchanged, and spot discounts were RMB 400-450/mt. Downstream consumers remained quiet, leaving lukewarm trading sentiment. 

    Tin:

    In Shanghai tin market, offers for domestic high-grade tin remained firm, while low-grade tin holders continued to reduce offers to RMB 115,000-116,000/mt in an effort to move goods. Offers for high-grade tin stood firm at RMB 117,000-118,000/mt.

    Nickel:

    In Shanghai nickel market, offers for goods from Jinchuan Group were RMB 130,000/mt, and limited traders reduced offers to RMB 129,500/mt in order to move goods. In this context, imported nickel was quoted at RMB 12,900/mt, with no price advantage compared to goods from Jinchuan Group. Market sentiment was lackluster, and the pessimism dominated market players. 

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