SMM Daily Review – 2012/5/16 Base Metals Market-Shanghai Metals Market

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SMM Daily Review – 2012/5/16 Base Metals Market

SMM Insight 09:56:17AM May 17, 2012 Source:SMM

SHANGHAI, May 17 (SMM) --

Copper:
As LME copper extended losing streak overnight, the most active SHFE 1208 copper contract opened RMB 130/mt down at RMB 55,530/mt Wednesday. After the opening, the contract drifted lower after hovering briefly around the opening price, with a high at RMB 55,700/mt. In the afternoon session, LME copper slid below USD 7,700/mt and dragged down the contract gradually to as low as RMB 54,660/mt after losing RMB 55,000/mt. Finally, SHFE 1208 copper contract ended at RMB 54,690/mt, down RMB 970/mt or 1.74%, with trading volumes and positions falling by 16,980 lots and 3,624 lots, respectively. However, trading volumes and positions for SHFE 1209 copper contract increased by 109,000 lots and 61,138 lots, respectively, highlighting the continuous shift of the most active copper contract. Positions for all SHFE copper contracts exceeded 600,000 lots as short investors began to dampen markets, inverting from previous cautious attitudes. In this context, SHFE copper prices will continue to fall for the foreseeable future.

SHFE copper prices hovered around RMB 56,000/mt in the morning. Traders in spot markets sold aggressively during the first trading day after SHFE 1205 copper contract was delivered, leading to active market activity. Quotations for spot copper premiums were between positive RMB 80-140/mt in Shanghai in the morning business. As SHFE copper prices fell to around RMB 55,800/mt after 10 am, offers for spot copper premiums increased to positive RMB 80-150/mt. Traded prices for standard-quality copper were between RMB 55,900-56,000/mt, and RMB 55,940-56,100/mt for high-quality copper. Downstream producers stepped up purchases at prices below RMB 56,000/mt, helping improve overall market transactions in the morning. In the afternoon, SHFE copper prices continued to fall, down by RMB 300/mt, with SHFE 1206 copper contract prices retreating to around RMB 55,500/mt, causing spot copper premiums to increase further. Premiums on high-quality copper were quoted between positive RMB 220-250/mt, and some cargo-holders even offered as high as positive RMB 270-300/mt, showing strong reluctance to sell at the lows. Traded prices lost RMB 56,000/mt completely in the afternoon, and markets were dominated by wait-and-see attitudes, although some downstream producers entered markets. Market transactions fell in the afternoon as a result. 

Aluminum:
As LME copper extended losing streak overnight, the most active SHFE 1208 copper contract opened RMB 130/mt down at RMB 55,530/mt Wednesday. After the opening, the contract drifted lower after hovering briefly around the opening price, with a high at RMB 55,700/mt. In the afternoon session, LME copper slid below USD 7,700/mt and dragged down the contract gradually to as low as RMB 54,660/mt after losing RMB 55,000/mt. Finally, SHFE 1208 copper contract ended at RMB 54,690/mt, down RMB 970/mt or 1.74%, with trading volumes and positions falling by 16,980 lots and 3,624 lots, respectively. However, trading volumes and positions for SHFE 1209 copper contract increased by 109,000 lots and 61,138 lots, respectively, highlighting the continuous shift of the most active copper contract. Positions for all SHFE copper contracts exceeded 600,000 lots as short investors began to dampen markets, inverting from previous cautious attitudes. In this context, SHFE copper prices will continue to fall for the foreseeable future.

SHFE copper prices hovered around RMB 56,000/mt in the morning. Traders in spot markets sold aggressively during the first trading day after SHFE 1205 copper contract was delivered, leading to active market activity. Quotations for spot copper premiums were between positive RMB 80-140/mt in Shanghai in the morning business. As SHFE copper prices fell to around RMB 55,800/mt after 10 am, offers for spot copper premiums increased to positive RMB 80-150/mt. Traded prices for standard-quality copper were between RMB 55,900-56,000/mt, and RMB 55,940-56,100/mt for high-quality copper. Downstream producers stepped up purchases at prices below RMB 56,000/mt, helping improve overall market transactions in the morning. In the afternoon, SHFE copper prices continued to fall, down by RMB 300/mt, with SHFE 1206 copper contract prices retreating to around RMB 55,500/mt, causing spot copper premiums to increase further. Premiums on high-quality copper were quoted between positive RMB 220-250/mt, and some cargo-holders even offered as high as positive RMB 270-300/mt, showing strong reluctance to sell at the lows. Traded prices lost RMB 56,000/mt completely in the afternoon, and markets were dominated by wait-and-see attitudes, although some downstream producers entered markets. Market transactions fell in the afternoon as a result. 

Lead:
SHFE lead prices moved around at RMB 15,535/mt Wednesday after opening due to the increasing risk for Greece to exit the euro zone. In the afternoon, SHFE lead prices dropped on account of the falling domestic stocks and since LME lead prices dipped below USD 2,000/mt, to finally close at RMB 15,255/mt, a new low of the year, down RMB 265/mt from the previous trading day. Trading volumes were down 168 lots to 176 lots, and positions increased by 6 lots to 1,088 lots.

On Wednesday, traders were actively moving goods on bearish outlook despite narrowing profits. Quotations for well-known brands such as Chihong Zn & Ge, Nanfang were mainly between RMB 15,420-15,430/mt, close to the most active SHFE lead contract price. Tongguan was quoted at RMB 15,400/mt. Quotations for lead from Gejiu region were at around RMB 15,280/mt. Enterprises downstream still purchased on an as-needed basis, and trading did not improve.

Zinc:
On Wednesday, SHFE three-month zinc contract prices opened higher at RMB 14,980/mt and touched an intraday high at RMB 15,065/mt in the morning session and moved between RMB 15,000-15,050/mt around the moving average. As the US dollar index surged in the midday, SHFE three-month zinc contract prices plunged and finally closed at RMB 14,860/mt, down RMB 80/mt or 0.54%. Trading volumes were 112,424 lots, and total position increased by 5,128 lots to 172,690 lots.

In domestic spot markets, discounts of #0 zinc against SHFE three-month zinc contract prices were between RMB 50-60/mt, with traded prices between RMB 14,930-14,970/mt. #1 zinc prices were between RMB 14,920-14,950/mt. Some market players were receiving goods during the delivery period, while traders were unwilling to purchase due to low discounts, and downstream buying interest was low since they had built stocks and due to low orders, leaving the overall transactions quiet.

Tin:
In Shanghai tin market, transactions were still quiet on Wednesday. Nanshan, Yunxiang and Yunshan were mainly traded at RMB 155,000/mt, with a few deals for Nanshan and Yunxiang done at lower prices. Most transactions for Jinhai, Yunheng and Yunxi were concluded between RMB 157,000-158,000/mt. In the afternoon, trading was further dampened. Smelters suffered losses due to remaining high costs, while demand downstream remained lackluster.

Nickel:
On Wednesday, mainstream traded prices of Jinchuan nickel were between RMB 126,500-126,700/mt in the morning session, while mainstream Russian nickel prices were between RMB 124,300-124,700/mt. Downstream buying interest improved as spot nickel prices were extremely low, causing trading volumes to increase. Traders did not hold goods.

 

 

 

 

 

 


 

SMM Daily Review – 2012/5/16 Base Metals Market

SMM Insight 09:56:17AM May 17, 2012 Source:SMM

SHANGHAI, May 17 (SMM) --

Copper:
As LME copper extended losing streak overnight, the most active SHFE 1208 copper contract opened RMB 130/mt down at RMB 55,530/mt Wednesday. After the opening, the contract drifted lower after hovering briefly around the opening price, with a high at RMB 55,700/mt. In the afternoon session, LME copper slid below USD 7,700/mt and dragged down the contract gradually to as low as RMB 54,660/mt after losing RMB 55,000/mt. Finally, SHFE 1208 copper contract ended at RMB 54,690/mt, down RMB 970/mt or 1.74%, with trading volumes and positions falling by 16,980 lots and 3,624 lots, respectively. However, trading volumes and positions for SHFE 1209 copper contract increased by 109,000 lots and 61,138 lots, respectively, highlighting the continuous shift of the most active copper contract. Positions for all SHFE copper contracts exceeded 600,000 lots as short investors began to dampen markets, inverting from previous cautious attitudes. In this context, SHFE copper prices will continue to fall for the foreseeable future.

SHFE copper prices hovered around RMB 56,000/mt in the morning. Traders in spot markets sold aggressively during the first trading day after SHFE 1205 copper contract was delivered, leading to active market activity. Quotations for spot copper premiums were between positive RMB 80-140/mt in Shanghai in the morning business. As SHFE copper prices fell to around RMB 55,800/mt after 10 am, offers for spot copper premiums increased to positive RMB 80-150/mt. Traded prices for standard-quality copper were between RMB 55,900-56,000/mt, and RMB 55,940-56,100/mt for high-quality copper. Downstream producers stepped up purchases at prices below RMB 56,000/mt, helping improve overall market transactions in the morning. In the afternoon, SHFE copper prices continued to fall, down by RMB 300/mt, with SHFE 1206 copper contract prices retreating to around RMB 55,500/mt, causing spot copper premiums to increase further. Premiums on high-quality copper were quoted between positive RMB 220-250/mt, and some cargo-holders even offered as high as positive RMB 270-300/mt, showing strong reluctance to sell at the lows. Traded prices lost RMB 56,000/mt completely in the afternoon, and markets were dominated by wait-and-see attitudes, although some downstream producers entered markets. Market transactions fell in the afternoon as a result. 

Aluminum:
As LME copper extended losing streak overnight, the most active SHFE 1208 copper contract opened RMB 130/mt down at RMB 55,530/mt Wednesday. After the opening, the contract drifted lower after hovering briefly around the opening price, with a high at RMB 55,700/mt. In the afternoon session, LME copper slid below USD 7,700/mt and dragged down the contract gradually to as low as RMB 54,660/mt after losing RMB 55,000/mt. Finally, SHFE 1208 copper contract ended at RMB 54,690/mt, down RMB 970/mt or 1.74%, with trading volumes and positions falling by 16,980 lots and 3,624 lots, respectively. However, trading volumes and positions for SHFE 1209 copper contract increased by 109,000 lots and 61,138 lots, respectively, highlighting the continuous shift of the most active copper contract. Positions for all SHFE copper contracts exceeded 600,000 lots as short investors began to dampen markets, inverting from previous cautious attitudes. In this context, SHFE copper prices will continue to fall for the foreseeable future.

SHFE copper prices hovered around RMB 56,000/mt in the morning. Traders in spot markets sold aggressively during the first trading day after SHFE 1205 copper contract was delivered, leading to active market activity. Quotations for spot copper premiums were between positive RMB 80-140/mt in Shanghai in the morning business. As SHFE copper prices fell to around RMB 55,800/mt after 10 am, offers for spot copper premiums increased to positive RMB 80-150/mt. Traded prices for standard-quality copper were between RMB 55,900-56,000/mt, and RMB 55,940-56,100/mt for high-quality copper. Downstream producers stepped up purchases at prices below RMB 56,000/mt, helping improve overall market transactions in the morning. In the afternoon, SHFE copper prices continued to fall, down by RMB 300/mt, with SHFE 1206 copper contract prices retreating to around RMB 55,500/mt, causing spot copper premiums to increase further. Premiums on high-quality copper were quoted between positive RMB 220-250/mt, and some cargo-holders even offered as high as positive RMB 270-300/mt, showing strong reluctance to sell at the lows. Traded prices lost RMB 56,000/mt completely in the afternoon, and markets were dominated by wait-and-see attitudes, although some downstream producers entered markets. Market transactions fell in the afternoon as a result. 

Lead:
SHFE lead prices moved around at RMB 15,535/mt Wednesday after opening due to the increasing risk for Greece to exit the euro zone. In the afternoon, SHFE lead prices dropped on account of the falling domestic stocks and since LME lead prices dipped below USD 2,000/mt, to finally close at RMB 15,255/mt, a new low of the year, down RMB 265/mt from the previous trading day. Trading volumes were down 168 lots to 176 lots, and positions increased by 6 lots to 1,088 lots.

On Wednesday, traders were actively moving goods on bearish outlook despite narrowing profits. Quotations for well-known brands such as Chihong Zn & Ge, Nanfang were mainly between RMB 15,420-15,430/mt, close to the most active SHFE lead contract price. Tongguan was quoted at RMB 15,400/mt. Quotations for lead from Gejiu region were at around RMB 15,280/mt. Enterprises downstream still purchased on an as-needed basis, and trading did not improve.

Zinc:
On Wednesday, SHFE three-month zinc contract prices opened higher at RMB 14,980/mt and touched an intraday high at RMB 15,065/mt in the morning session and moved between RMB 15,000-15,050/mt around the moving average. As the US dollar index surged in the midday, SHFE three-month zinc contract prices plunged and finally closed at RMB 14,860/mt, down RMB 80/mt or 0.54%. Trading volumes were 112,424 lots, and total position increased by 5,128 lots to 172,690 lots.

In domestic spot markets, discounts of #0 zinc against SHFE three-month zinc contract prices were between RMB 50-60/mt, with traded prices between RMB 14,930-14,970/mt. #1 zinc prices were between RMB 14,920-14,950/mt. Some market players were receiving goods during the delivery period, while traders were unwilling to purchase due to low discounts, and downstream buying interest was low since they had built stocks and due to low orders, leaving the overall transactions quiet.

Tin:
In Shanghai tin market, transactions were still quiet on Wednesday. Nanshan, Yunxiang and Yunshan were mainly traded at RMB 155,000/mt, with a few deals for Nanshan and Yunxiang done at lower prices. Most transactions for Jinhai, Yunheng and Yunxi were concluded between RMB 157,000-158,000/mt. In the afternoon, trading was further dampened. Smelters suffered losses due to remaining high costs, while demand downstream remained lackluster.

Nickel:
On Wednesday, mainstream traded prices of Jinchuan nickel were between RMB 126,500-126,700/mt in the morning session, while mainstream Russian nickel prices were between RMB 124,300-124,700/mt. Downstream buying interest improved as spot nickel prices were extremely low, causing trading volumes to increase. Traders did not hold goods.