Metals News
SMM Daily Review (Nov. 25)
smm insight
01:16PM
Dec 7,2009
Source:SMM

SHANGHAI, Nov. 26 (SMM) --

    Copper:

    SHFE copper prices experienced wide fluctuations today. SHFE copper prices soared in the morning, but dipped at noon negatively affected by falling A-share stock market. However, SHFE copper prices climbed in the afternoon supported by recovering A-share stock market, and positions of March-delivery contract increased by more than 18,000 lots, and copper for March delivery stood above RMB 55,000/mt. SHFE forward contract copper prices inched up to RMB 56,000/mt, while SHFE spot-month contract copper prices moved in the RMB 53,800-54,200/mt range. Technically, SHFE copper prices will continue to move up after short-term reduction.

    In spot market, spot discounts narrowed to RMB 150-250/mt in the morning when SHFE copper prices fell. Although market sentiment was bearish compared to yesterday morning, and trading volumes declined in response, cargo-holders held an optimistic outlook and were reluctant to move goods, as spot discounts will likely disappear gradually next week. Traded prices were in the RMB 53,700-53,900/mt range in the morning, but climbed to the range of RMB 53,850-54,000/mt in the afternoon. Supply of imported copper declined, and offers for high-grade copper were firm, but transactions of standard-grade copper dropped. Spot copper prices will continue to test RMB 54,000/mt.

    Aluminum:

    SHFE aluminum prices fluctuated narrowly today, with limited downward room. SHFE aluminum prices were restricted by 5-day moving average line in the morning, but later inched up along with the recovering A-share stock market in the afternoon. SHFE three-month contract aluminum prices found solid support at RMB 15,550/mt, but faced pressure at RMB 15,700/mt, while aluminum for March delivery moved up to RMB 15,800/mt after stabilized at RMB 15,700/mt, and will climb to RMB 16,000/mt. Technically, aluminum prices will move in a narrow range today.

    Spot aluminum market was brisk. Traded prices dropped to RMB 15,080/mt from RMB 15,130/mt in the morning, but recovered to the range of RMB 15,120-15,150/mt in the afternoon, as the rising SHFE aluminum prices helped traders increase purchase volumes. Today, only limited deals were made by consumers.

    Lead:

    In Shanghai lead market, SMM lead prices remained unchanged. Well-known lead smelters kept their offers firm at RMB 16,000/mt, and prices for unknown brands were as low as RMB 15,850-15,900/mt. However, downstream consumers stood out of market, waiting for a clear market direction. 

    Zinc:

    SHFE zinc prices dipped, with positions down more than 10,000 lots. Technically, the optimistic market sentiment remained strong. Zinc for January delivery stood firm at RMB 18,000/mt, while zinc for February delivery was moving up to test RMB 18,500/mt, and will climb to RMB 19,000/mt or even RMB 20,000/mt in the long run. SHFE spot-month contract zinc prices faced great resistance at RMB 18,000/mt, and received support at RMB 17,750/mt.

    In spot market, suppliers were not eager to move goods when zinc prices dropped in the morning, with offers for #0 zinc at RMB 17,600/mt and offers for #1 zinc at RMB 17,550/mt. The rising SHFE zinc prices helped drive up spot zinc prices in the afternoon, raising cargo-holder unwillingness to move goods. Traded prices for #0 zinc are expected to inch up to test RMB 17,700/mt tomorrow.

    Tin:

    LME tin prices moved around USD 15,000/mt. In Shanghai tin market, the purchasing interest faded, while the wait-and-see attitude emerged, leaving neutral transactions of well-known brands. In this context, traded prices for well-known brands will remain unchanged at RMB 115,500-116,000/mt due to rising costs and limited sales.

    Nickel:

    In Shanghai nickel market, profit margins for goods from Jinchuan Group narrowed further, with prices at RMB 127,000/mt, and market surplus remained unchanged, hampering the cargo movement of imported nickel, and overall trading volumes were limited. 

 

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