SHANGHAI, Apr. 20 (SMM) – Base metals on the SHFE drifted lower after a high opening on Wednesday. SHFE 1308 copper contract closed down 0.55%, while the most active SHFE lead contract also ended the day 0.5% lower. SHFE aluminum and zinc managed to close higher.
Spot copper in Shanghai was quoted at a premium of RMB 130-270/mt over SHFE 1305 copper contract. Traded prices for standard-quality copper were between RMB 53,150-53,280/mt, and RMB 53,230-53,450/mt for high-quality copper. Downstream producers were little interested in entering the market out of their belief that rebound in copper prices will not sustain, while middlemen largely held to the sidelines, depressing overall trading.
Spot aluminum was traded at RMB 14,450-14,470/mt in Shanghai, a discount of RMB 90-110/mt over SHFE 1305 aluminum contract. Low-iron aluminum was traded around RMB 14,620/mt. Traders were eager to sell, but downstream producers were cautious about buying at highs. Only middlemen purchased modest amounts at RMB 14,450/mt. Traders in south China took a wait-and-see stance, holding offers at RMB 14,600/mt. Downstream producers purchased to need, leaving overall trading stable.
Trading in spot lead market continued to improve. Although smelters remained unwilling to move goods, middlemen were active in purchasing and downstream producers were also highly interested in bargain hunting as they considered current prices low. Traded prices were RMB 14,010/mt for Chihong Zn & Ge, a discount of RMB 50/mt over the most active SHFE lead contract, RMB 13,960/mt for Nanfang, and RMB 13,950/mt for Yubei, RMB 30/mt lower than SHFE 1305 lead contract.
Traded prices were RMB 14,530-14,540/mt for #0 zinc, and RMB 14,500/mt for #1 zinc. Downstream producers refrained from buying out of growing optimism over future prices, leaving trading muted.