SHANGHAI, Apr. 8 (SMM) –
The most active SHFE copper prices hovered between RMB 46,200-46,500/mt after starting at RMB 46,430/mt and ended down RMB 30/mt at RMB 46,380/mt during Thursday’s night session. Traded volumes fell slightly to around 150,000 lots, while positions were basically unchanged. On Friday, SHFE copper prices gradually leveled off after starting and later continued to bounce back, helped by a rebound in the Shanghai Composite during the afternoon trading session. The red metal tested a high of RMB 46,760/mt at the tail of the trading, and finished Friday up RMB 280/mt, or 0.6%, at RMB 46,690/mt. Traded volumes fell by 159,000 lots, and positions contracted by 13,774 lots for the most active SHFE copper contract. SHFE copper prices have climbed above the 5-day moving average on Friday, with a sign of risk aversion before the Tomb Sweeping Day holiday.
In the Shanghai physical market, copper was offered Friday at a premium of RMB 250-340/mt over the SHFE current-month copper contract prices. Traded prices were RMB 47,150-47,370/mt for standard-quality copper and RMB 47,200-47,430/mt for high-quality copper. As SHFE copper prices bounced back, cargo holders continued to push up spot premiums. Prices for standard-quality copper and hydro-copper were firm due to short supply, and moved closer to those for high-quality copper. As spot premiums rose above RMB 300/mt and the price gap between the SHFE 1404 copper contract and the SHFE 1405 copper contract widened, the market saw an increasing amount of copper supply. Middlemen rarely entered the market due to caution towards spot premiums in the near term, as well as to avoid risks before the Tomb Sweeping Day holiday. Downstream producers purchased goods Friday only on an as-needed basis, with moderate trading volumes. As SHFE copper prices rallied further in the afternoon trading session, price gap between SHFE 1404 copper contract and SHFE 1405 copper contract continued to hover around RMB 200/mt, with physical copper trading at high premiums. Physical premiums for standard-quality copper held firm above RMB 300/mt, while mainstream premiums were offered between RMB 280-330/mt, with traded prices up to RMB 47,400-47,450/mt. Some middlemen entered markets, with trading activity improving slightly, but physical copper was barely found at the tail of the trading. The Shanghai Futures Exchange reported that copper inventories fell sharply by 21,355 mt to 172,370 mt this week. The majority of imported copper piled up in bonded warehouses due to the unfavorable SHFE/LME copper price ratio, while domestic copper smelters exported some copper supplies, causing heavy losses in copper inflows.
Last Thursday night, SHFE 1406 aluminum contract was range-bound, with opening and closing prices at RMB 13,100/mt and RMB 13,080/mt, respectively. Trading volumes totaled 5,572 lots, and positions increased 210 lots to 123,080 lots. Last Friday, the most active contract climbed to RMB 13,170/mt before finishing the daytime session RMB 75/mt higher at RMB 13,155/mt. Trading volumes totaled 19,546 lots, and positions added 346 lots to 123,426 lots.
Spot aluminum largely traded at RMB 12,750-12,760/mt in Shanghai and Wuxi last Friday, and RMB 12,760-12,770/mt in Hangzhou. Downstream producers increased purchases ahead of the upcoming Tomb Sweeping Day, allowing sellers to raise offers. In the afternoon, rising SHFE 1404 aluminum contract allowed cargo holders to hike offers further, pushing traded prices up to RMB 12,780/mt.
The most active SHFE 1405 lead contract price hovered around RMB 13,670/mt after starting at RMB 13,615/mt, and later trended higher to close down RMB 30/mt at RMB 13,675/mt during Thursday’s night session. Traded volumes were merely 14 lots, and positions were flat at 6,872 lots. On Friday, SHFE lead prices followed LME lead prices up to a high of RMB 13,725/mt due to shorts taking profits, but later fluctuated around RMB 13,715/mt with the lack of upward impetus. The metal finished up RMB 15/mt, or 0.11%, at RMB 13,720/mt on Friday. Traded volumes lost 110 lots to 366 lots, while positions decreased by 236 lots to 6,636 lots.
In the Shanghai physical lead market, goods from Chihong Zn & Ge, Nanfang, and Chengyuan traded Friday at RMB 13,680/mt, a discount of around RMB 35/mt over the SHFE 1405 lead contract prices. Shuangyan resources were sold at RMB 13,670/mt for steel-plastic supply and RMB 13,630-13,640/mt for iron sheet supply, while Humon traded at RMB 13,660/mt. Supply from Chihong Zn & Ge, Nanfang, and Chengyuan was barely found in the market, with only over 4,000 mt of warrants in Shanghai. Traders were disinclined to move warrant supply, while downstream producers had little interest in building stocks before the Tomb Sweeping Day holiday, with sluggish transactions.
SHFE 1406 zinc contract prices opened at RMB 14,830/mt on Thursday evening, and then fluctuated between RMB 14,825-14,845/mt, closing at RMB 14,830/mt, up RMB 5/mt or 0.03%. Trading volumes decreased by 1,916 lots to 3,168 lots, and total positions increased by 252 lots to 72,304 lots. SHFE 1406 zinc contract prices opened at RMB 14,830/mt on Friday, then rose with LME zinc prices, touching RMB 14,865/mt at one point, and closing the day at RMB 14,860/mt, up RMB 35/mt or 0.24%. Trading volumes decreased by 472 lots, to 16,626 lots, and total positions decreased by 2,426 lots, to 69,000 lots.
#0 zinc prices were between RMB 14,710-14,730/mt, with spot discounts between RMB 110-130/mt against SHFE 1406 zinc contract prices. #1 zinc prices were between RMB 14,670-14,680/mt. SHFE 1406 zinc contract prices opened at RMB 14,830/mt on Friday, and then fluctuated narrowly. Traders lacked interest in transactions before the holiday, and smelters were still unwilling to move goods, with some brands still in short supply, and imported zinc tight. Downstream enterprises replenished goods modestly, causing transactions to improve. Shuangyan branded #0 zinc prices were between RMB 14,720-14,730/mt, with RMB 14,710-14,720/mt for Yuguang, Qinxin and Feilong branded #0 zinc. Imported Spanish #0 zinc prices were between RMB 14,700-14,710/mt.
In Shanghai physical tin market, rising LME tin prices overnight boosted market sentiment, pushing mainstream traded prices up to RMB 137,500-139,500/mt last Friday. Second and third-tier brand tin gained more favor.
In Shanghai, SMM #1 nickel prices were between RMB 105,200-106,200/mt. Jinchuan raised nickel prices by RMB 1,000/mt, to RMB 106,000/mt. Transactions were brisk as spot prices rose, with traders actively purchasing, and prices up to RMB 106,000-107,000/mt in the afternoon.