With LME copper being mired overnight, SHFE 1308 copper contract opened RMB 230/mt lower at RMB 49,500/mt on Tuesday. After its opening, worse-than-expected HSBC’s China PMI sent the Shanghai Composite Index plunging 2.5%, weighing down the most active SHFE copper contract. However, more investors bought SHFE forward-month copper contracts, helping SHFE copper for August delivery move within RMB 49,000-49,500/mt in the morning session, with its high-end price at RMB 50,730/mt. In the afternoon, panic selling and the retreat of LME copper from USD 6,800/mt drove SHFE copper for delivery in four months down to RMB 48,460/mt. Finally, the most active SHFE copper contract closed down RMB 650/mt or 1.31% at RMB 49,080/mt. Trading volumes and positions of SHFE 1308 copper contract increased 158,000 lots and 12,062 lots, respectively. Total trading volumes and positions were also up 306,000 lots and 34,426 lots.
Spot copper in
SHFE 1306 aluminum contract started Tuesday at RMB 14,525/mt. The most active SHFE aluminum contract moved in tight ranges during the day as shorts and longs exited the market, and finally closed at RMB 14,540/mt, a slight RMB 5/mt or 0.03% gain. Positions contracted 2,722 lots to 64,028 lots.
Spot aluminum was traded at RMB 14,400-14,420/mt in
SHFE 1306 lead contract price started slightly higher at RMB 13,745/mt on Tuesday. However, as the HSBC China flash PMI was reported at
SHFE lead prices were again dragged down by the worse-than-expected China HSBC PMI on Tuesday, and spot lead price also fell below RMB 13,700/mt. Cargo holders were more reluctant to move goods, with quotations rarely reported. Chihong Zn & Ge and Nanfang were quoted at RMB 13,640-13,650/mt, with spot discounts of RMB 30-40/mt against the most active SHFE lead contract price. Warrants for Yubei were offered at RMB 13,620/mt, with premiums of RMB 20/mt over the HSFE 1305 lead contract price. Inquiries downstream were also limited, with only a few transactions done between traders.
SHFE 1307 zinc contracts prices opened at RMB 14,540/mt on Tuesday, touching RMB 14,615/mt following LME zinc prices, but then falling back to RMB 145,20/mt. HSBC’s April PMI for China was only 50.5, showing the path to recovery of China’s manufacturing is still marked with twist and turns. With growing investor concerns, the Shanghai Composite Index plummeted and closed with declines of 2.57%, dragging down SHFE 1307 zinc contract prices to USD 14,415/mt, but gaining back some previous losses, and finally closing at RMB 14,515/mt, down RMB 30/mt. Total positions decreased by 2,564 lots to 125,410 lots.
SHFE 1307 zinc contract prices soared briefly but then inched down. Spot discounts of #0 zinc against SHFE 1307 zinc contract prices narrowed from RMB 70-90/mt, to RMB 50-60/mt, with traded prices between RMB 14,460-14,490/mt. #1 zinc prices were between RMB 14,430-14,440/mt, with supply remaining tight. Smelters were still holding back goods, while downstream buyers began to replenish stocks modestly, with overall transactions muted. SHFE zinc prices stopped falling in the afternoon, and #0 zinc prices edged down to RMB 14,440-14,450/mt, but the market did not improve.
Mainstream traded prices in