SHANGHAI, Nov. 8 (SMM)--
SHFE 1401 copper contract prices opened RMB 170/mt lower at RMB 51,350/mt on Thursday. The red metal drifted lower to RMB 51,250/mt as shorts liquidated positions, but followed LME copper up above the daily moving average, regaining earlier losses. However, the prices remained under the resistance at RMB 51,530/mt. SHFE 1401 copper contract shed RMB 30/mt or 0.06% to close at RMB 51,490/mt. Trading volumes and positions plunged by 38,652 lots and 5,518 lots, respectively.
Spot copper in Shanghai was quoted at a contango of RMB 0-50/mt and a backwardation of RMB 0-50/mt over SHFE 1311 copper contract. Traded prices were RMB 51,440-51,520/mt for standard-quality copper, and RMB 51,480-51,600/mt for high-quality copper. High-quality copper was offered at a backwardation. Suppliers held back goods at low prices. Some traders went bargain hunting in the morning, while downstream producers purchased on an as-needed basis. In the afternoon, some sellers in spot markets lowered quotations, but others held prices firm, leaving quotes in the market unchanged. Traded prices rose to RMB 51,550-51,700/mt. Supplies increased, and transactions remained modest.
January aluminum on the Shanghai Futures Exchange (SHFE), the most active one, opened at RMB 14,310/mt on Thursday. The light metal ranged between day's high of RMB 14,330/mt and day's low of RMB 14,280/mt, closing the day RMB 5/mt higher. Wait-and-see sentiment ruled the market, leaving SHFE 1401 aluminum contract mired. Trading volumes contracted 2,976 lots to 3,990 lots, and positions also shrank 1,428 lots to 43,128 lots.
Spot aluminum prices were RMB 14,420-14,430/mt in Shanghai and Wuxi, and RMB 14,400-14,410/mt in Hangzhou. Cargo holders were eager to sell for fear that prices will not rally for the immediate term, while downstream producers bought only to need.
SHFE 1401 zinc contract prices opened at RMB 14,940/mt, and inched up to RMB 14,975/mt as a large number of longs entered the market. But with the lack of buying interest, SHFE zinc prices leveled out between RMB 14,970-14,985/mt, finding support at the 60-day moving average, and closing at RMB 14,975/mt. Trading volumes decreased by 2,470 lots, to 18,098 lots, and total positions increased by 1,646 lots, to 110,000 lots. The market is awaiting the release of US October non-farm employment data and the opening of the Third Plenary Session of the CPC Central Committee.
#0 zinc prices were between RMB 15,040-15,080/mt, with spot premiums between RMB 70-110/mt against SHFE 1401 zinc contract prices. #1 zinc prices firm between RMB 15,000-15,010/mt, with trades muted at the high end of the price range. Belgium #0 zinc prices were between RMB 14,980-15,000/mt, with KZ and SMC #0 zinc prices higher between RMB 15,040-15,050/mt. SHFE zinc prices opened low then fluctuated around RMB 15,000/mt. Traders held to the sidelines, with downstream buyers purchasing on an as-needed basis, leaving transactions muted.
The most active SHFE lead prices basically hovered around RMB 14,310/mt after starting slightly lower at RMB 14,280/mt and finally ended at RMB 14,310/mt, down RMB 20/mt. Traded volumes shed 332 lots to 412 lots, while open interest fell 308 lots to 9,458 lots on Thursday. Thin trading in spot lead markets also dampened transactions in futures markets.
In China's spot lead market, traded prices were little changed from Wednesday. Goods of Chihong Zn & Ge were traded at RMB 14,230/mt, a discount of RMB 80/mt against the most active SHFE lead prices. Nanfang was sold at RMB 14,190-14,200/mt, and Mengzi was traded at RMB 14,180/mt. Prices for Shenqian and Humon were around RMB 14,150/mt. Spot lead supply was ample, and downstream purchases improved slightly. Transactions done for Nanfang and other low-price brands increased.
Trading for spot tin in Shanghai was dull on Thursday due to lower-than-expected performance of LME tin prices overnight. Traded prices were mainly between RMB 144,800-147,500/mt, up marginally from Wednesday. A few resources from Nanshan were offered at RMB 144,500/mt in the morning, and were soon sold out. In the afternoon, prices held steady, and neither sellers nor buyers were willing to budge on prices, awaiting LME tin price movements for a clear clue.
In Shanghai, Jinchuan lowered nickel prices by RMB 2,100/mt, to RMB 98,000/mt. Transactions remained quiet, with trades mainly made among traders. SMM #1 nickel prices were between RMB 96,900-97,900/mt, with mainstream traded prices within SMM price range.