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Base Metals Extend Gains, Jinchuan Group Cuts Nickel Prices
Apr 10,2013 11:03CST
smm insight
All base metals on the SHFE opened higher on Tuesday.

SHANGHAI, Apr. 10 (SMM) – All base metals on the SHFE opened higher on Tuesday. SHFE 1307 zinc contract was the best performer, which closed 1.6% higher at RMB 14,890/mt, breaking through the 5-day and 10-day moving averages. The most active SHFE copper contract also ended the day up 1.42% at RMB 55,090/mt. The National Bureau of Statistics announced yesterday China’s PPI slid more than expected by 1.9% YoY in March, but this failed to affect base metals prices.  

Most base metals on the LME extended gains during the Asian trading hours, except for a slight decline in LME tin. 

Spot copper in Shanghai was quoted at a premium of RMB 150-250/mt over SHFE 1304 copper contract price on Tuesday. Traded prices for standard-quality copper were between RMB 55,100-55,250/mt, and RMB 55,150-55,350/mt for high-quality copper. Middlemen generally watched from the sidelines out of caution toward future prices, and downstream producers similarly believe the rally in copper prices will only be transitory, leaving transactions subdued at above RMB 55,000/mt.  

Spot aluminum was traded at RMB 14,480-14,500/mt in Shanghai on April 9, a discount of RMB 60-80/mt over SHFE 1304 aluminum contract price. Low-iron aluminum was trade around RMB 14,650/mt. Traders rushed to move goods, while downstream producers purchased as needed, leaving overall trading light. Spot aluminum prices in south China advanced to RMB 14,610-14,630/mt, a premium of RMB 130/mt over Shanghai. Cargo holders held offers firm, while downstream producers and middlemen purchased to need, leaving overall trading brisk.

Quotations for Chihong Zn & Ge were reported at RMB 14,270/mt, compared with RMB 14,250/mt for Nanfang. YT lead was quoted at RMB 14,230/mt, while Tongguan was offered at RMB 14,260/mt, level with SHFE 1304 lead contract price, but transactions were muted at highs.

Mainstream traded prices for #0 zinc and #1 zinc were RMB 14,640-14,650/mt and RMB 14,610/mt, respectively. Inquiries were brisk among traders, but only a few deals were done. Downstream producers were little interested in buying out of bearishness over future prices.

Jinchuan Group cut ex-works prices of nickel to RMB 113,500/mt, a decrease of RMB 1,500/mt. 

Shanghai spot copper prices
SHFE base metals prices

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