SHANGHAI, Apr. 12 (SMM) – China's March credit loans and financing data was both higher than expectations. RMB loans increased by RMB 1.06 trillion in March, up RMB 440 billion from February. M2 increased by 15.7%, while M1 increased by 11.9%. Q1 financing was RMB 6.16 trillion, up RMB 2.27 trillion YoY, with March financing volume of RMB 2.54 trillion, hitting an all-time monthly high last seen in January.
China's March PPI unexpectedly fall, while China's official PMI only rose modestly, depressing market confidence towards China's economic growth.
The monthly report by European central bank and US first-time jobless claims last week were the focuses of markets overnight.
Spot transactions of base metals weakened. Spot copper discounts in Shanghai were RMB 20-100/mt, with some spot prices below SHFE copper prices. Traded prices for stand-quality copper were RMB 55,300-55,420/mt, with prices for high-quality copper between RMB 55,360-55,500/mt. Traders were mostly cautious, and planned to return to the market after SHFE 1305 copper contracts become the most actively traded contracts, keeping transactions muted.
Spot aluminum prices in Shanghai were between RMB 14,580-14,610/mt, with discounts of RMB 90-60/mt. Prices for low-iron aluminum were around RMB 14,750/mt, with spot aluminum prices weighed down to RMB 14,600/mt as traders lowered quotes, and with transactions muted. Spot aluminum traders in south China were actively moving goods, but downstream buyers purchased modestly, with traded prices struggling around RMB 14,690/mt.
Spot lead prices fluctuated narrowly, with prices for well-known brands such as Chihong Zn & Ge and Nanfang were around 14,250/mt, with spot discounts against SHFE three-month lead contract prices of RMB 210/mt, and with warehouse warrant price for YT lead at RMB 14,200/mt.
#0 zinc was traded between RMB 14,710-14,730/mt, with prices for #1 zinc between RMB 14,670-14,700/mt. Downstream markets remained sluggish, with pessimism prevailing in the market, and downstream buyers purchasing on an as-needed basis.