Metals News
SMM Daily Review (Nov. 10)
smm insight
01:16PM
Dec 7,2009
Source:SMM

SHANGHAI, Nov. 11 (SMM) --

    Copper:

    SHFE copper prices opened low and moved stably. Copper futures for January delivery remained at RMB 51,150/mt in the morning, while copper futures for February delivery were RMB 51,300/mt. In the afternoon, SHFE three-month contract copper prices fell from RMB 51,000/mt to the range of RMB 50,750-50,850/mt, while SHFE spot-month contract copper prices stabilized at RMB 50,500/mt.

    Today, spot market remained strong. Spot discounts for premium copper moved from RMB 50/mt to RMB 0/mt in the morning, with traded prices in the RMB 50,800-50,850/mt range. A portion of imported copper holders were reluctant to sell goods due to drops in traded prices compared with yesterday levels. Spot discounts for parity copper were RMB 50-100/mt, with traded prices around RMB 50,750/mt, and transactions were worse than yesterday. Spot copper prices remained stable in the afternoon in view of plunged SHFE copper prices. Both traders and consumers took a cautious view, as struggles between long and short positions intensified at current levels.

    Aluminum:

    SHFE aluminum prices opened high and remained stable in the morning, but plunged in the afternoon. SHFE three-month contract aluminum prices faced resistance at RMB 15,200/mt, and closed at RMB 15,100/mt, and the price spread between spot-month contract and three-month contract narrowed. Positions of three-month contract declined by nearly 10,000 lots. SHFE spot-month contract aluminum prices stood firm at RMB 14,900/mt, with a sign that long positions will withdraw from the market. 

    In spot market, offers were RMB 14,870-14,880/mt in the morning, and transactions were slim. Prices for imported aluminum from India fell from RMB 14,850/mt to RMB 14,820/mt. In this context, a number of domestic aluminum holders also reduced selling prices to RMB 14,850-14,860/mt, but transactions remained weak. Aluminum prices faced great pressure at RMB 14,900/mt as the delivery date nears, an indication of supply pressure and weak consumption in aluminum market.

    Lead:

    Weak performance of LME lead prices last night depressed market player confidence in Shanghai lead market, and domestic lead holders reduced offers to RMB 15,400/mt, an indication that they lost confidence in lead prices at RMB 15,500/mt. Lead prices will likely fall rapidly if LME lead prices continue to slip tonight. 

    Zinc:

    SHFE zinc prices opened low. SHFE three-month contract zinc prices moved around RMB 16,850/mt in the morning, but fell to RMB 16,650/mt in the afternoon, while SHFE spot-month contract zinc prices dipped to RMB 16,300/mt, and the price spread between soon-to-expire contract and forward contract narrowed increasingly.

    In spot market, SMM zinc prices remained unchanged. #1 zinc was traded at RMB 16,400/mt in the morning, and #0 zinc was traded at RMB 16,450/mt, and the downstream purchasing interest was low. The trading sentiment was lackluster in the afternoon given declines in SHFE zinc prices.

    Tin:

    In Shanghai tin market, offers for low-quality tin were RMB 114,500/mt, and offers for high-quality tin were lowered to RMB 116,500-117,000/mt reluctantly, but transactions remained weak given sluggish downstream consumption.

    Nickel:

    In Shanghai nickel market, offers for goods from Jinchuan Group remained at RMB 129,000-129,500/mt, while offers for imported nickel were RMB 129,000/mt. Cargo-holders were unwilling to lower prices further, resulting in lukewarm trading sentiment. Traders and downstream consumers were reluctant to replenish stocks due to the pessimistic market sentiment.

 

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