SHANGHAI, Jan. 9 (SMM) – Metals market staged a slight upturn at the beginning of 2013 as the positive expectation on urbanization and continued recovery in property market reflected improvement of the overall market.
During the first trading week after the New Year holiday, spot prices for base metals edged up, with transactions enlivened. Spot discounts of #1 refined copper over the most active SHFE copper contract price narrowed to RMB 70-150/mt. In south China, traders and downstream buyers replenished aluminum ingots at low prices. Meanwhile, quotations for spot lead held firm due to price increase in lead-acid batteries, and Chihong Zn & Ge was quoted at RMB 14,780/mt, with spot discounts over the most active SHFE lead contract price at RMB 420/mt. Spot discounts of #0 zinc over the most traded SHFE zinc contract price also narrowed to RMB 260-280/mt.
Prices for batteries used in electric vehicles were adjusted upward by RMB 20/set with the price war coming to an end. However, given the sluggish demand, whether battery prices will continue the upward trend remains uncertain.
China’s CPI and PPI data for December will be released this Friday. The CPI is expected to rebound while decline in PPI may narrow, which will further prove the continuous recovery in China’s economy and add to market confidence.