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SMM Base Metals Market Daily Review (2014-6-12)
Jun 13,2014 09:23CST
SMM Comments
The most active SHFE copper contract swung by around RMB 250/mt after starting Wednesday’s night session at RMB 47,550/mt, meeting resistance at RMB 47,780/mt.

SHANGHAI, Jun. 13 (SMM) –

The most active SHFE copper contract swung by around RMB 250/mt after starting Wednesday’s night session at RMB 47,550/mt, meeting resistance at RMB 47,780/mt, and ended down RMB 30/mt at RMB 47,650/mt. During the night session, traded volumes for the most active contract totaled some 100,000 lots, and positions decreased by 2,332 lots.

On Thursday, SHFE copper prices dipped to a low of RMB 47,450/mt during the afternoon trading session, and closed down RMB 220/mt, or 0.46%, at RMB 47,460/mt. Traded volumes for the most active contract contracted by 49,368 lots, and positions shrunk by 13,010 lots.

In the Shanghai physical market, copper was offered Thursday at a RMB 120-200/mt over the SHFE front-month copper contract. Traded prices were RMB 48,540-48,780/mt for standard-quality copper and RMB 48,580-48,840/mt for high-quality copper. After the SHFE 1406 lead contract prices rebounded sharply by more than RMB 100/mt, some middlemen entered the market to buy to satisfy demand from long-term contracts. Cargo holders were reluctant to move goods to hold prices firm. Physical premiums rallied appreciably due to decreasing supply, with standard-quality copper barely found in the market. Meanwhile, downstream producers mostly stayed on the sidelines, regarding copper prices as too high. Trading activity was quite on Thursday, with most transactions done among middlemen.

The SHFE front-month copper contract rose further during the afternoon trading session, widening the price gap between the SHFE 1406 and 1407 copper contracts. This gave cargo holders an incentive to maintain a high premium for quotations. There were still no outflows of standard-quality copper reported in the market, and some speculators purchased high-quality copper, driving down supply. Physical copper was largely quoted at a RMB 150-200/mt premium, and traded between RMB 48,780-48,900/mt. Premiums for some copper brands rose above RMB 300/mt at the tail of the trading, although no transactions were reported.

On Wednesday night, SHFE 1408 aluminum contract crept higher to RMB 13,630/mt after starting at RMB 13,580/mt. Nevertheless, the most active contract retreated to RMB 13,540/mt before finishing the night session at RMB 13,580/mt. Trading volumes totaled 76,506 lots, with positions off 2,746 lots to 179,698 lots. On Thursday, August aluminum on the SHFE fell to RMB 13,445/mt before closing RMB 200/mt lower at RMB 13,460/mt. Trading volumes totaled 68,368 lots, with positions down 11,974 lots to 167,724 lots.

Spot aluminum largely traded between RMB 13,280-13,290/mt in Shanghai on Thursday, a discount of RMB 80-90/mt over SHFE 1406 aluminum contract. Mainstream traded prices were RMB 13,250-13,270/mt Wuxi and RMB 13,300-13,310/mt in Hangzhou. Sellers raised offers now that the delivery date of SHFE 1406 aluminum contract is approaching. High offers cooled buying. In the afternoon, trading activity grew quiet as falling SHFE aluminum prices drove sellers and buyers to the sidelines.

The most active SHFE lead contract started Wednesday’s night session at RMB 14,045/mt, and then went up to close at RMB 14,070/mt, down RMB 60/mt from previous session’s settle price of RMB 14130/mt.

On Thursday, SHFE lead prices rebounded to hover mostly at RMB 14,060/mt after falling briefly to RMB 14,035/mt, but finished down RMB 120/mt at an intraday low of RMB 14,010/mt. Traded volumes for the most active contract totaled 752 lots, and positions lost 60 lots to 5,412 lots.

In the Shanghai physical lead market, goods from Chihong Zn & Ge traded Thursday between RMB 13,950-13,970/mt, at an around RMB 100/mt discount over the most active SHFE 1408 lead contract. Traded prices were RMB 13,950/mt for Tongguan,, Nanfang, and Chengyuan resources, and RMB 13,900-13,910/mt for Humon brand and Shuangyan supply wrapped with plastic steel. Chihong Zn & Ge and Humon moved goods, while other lead smelters essentially were disinclined to trade to hold prices firm. Downstream producers expressed little buying interest on Thursday since they considered physical lead prices still too high despite a RMB 20-30/mt fall.

SHFE 1408 zinc contract prices opened at RMB 15,590/mt on Wednesday evening, then hovered around RMB 15,600/mt, and closing at RMB 15,600/mt. SHFE 1408 zinc contract prices opened at RMB 15,595/mt, and dipped to RMB 15,550/mt before touching RMB 15,640/mt, but plummeting at the end of trading. SHFE 1408 zinc contract prices closed at RMB 15,500/mt, down RMB 90/mt or 0.58%. Trading volumes decreased by 85,464 lots, to 82,398 lots, and total positions decreased by 9,634 lots, to 135,408 lots.

#0 zinc prices were between RMB 15,480-15,520/mt, with spot discounts of RMB 50-80/mt against SHFE 1408 zinc contract prices. #1 zinc prices were between RMB 15,430-15,450/mt, with transactions muted due to lower imported zinc prices. SHFE zinc prices edged down to RMB 15,570-15,580/mt. Some brands were in short supply due to maintenance, but supply of Yuguang, Shuangyan and imported zinc was sufficient. Spot discounts narrowed due to falling SHFE zinc prices, causing cargo holders to move goods, but downstream buying interest was low, leaving transactions quiet. Shuangyan branded #0 prices were between RMB 15,500-15,520/mt, and RMB 15,490-15,500/mt for Yuguang branded #0 zinc. Baohui branded #0 zinc prices were around RMB 15,480/mt, with RMB 15,400-15,430/mt for imported #0 zinc. SHFE 1408 zinc contract prices rose initially before falling in the afternoon, with #0 zinc prices between RMB 15,480-15,530/mt.

In Shanghai physical tin market, mainstream traded prices remained stable between RMB 138,500-140,000/mt on Thursday. Sellers refused to discount, while buyers stayed out of the market against falling LME tin prices. Small amounts of Jinlong and Nanshan brand tin traded lower at RMB 138,300/mt.

SMM #1 nickel prices were quoted between RMB 126,400-127,000/mt, with spot transactions extremely muted. Price volatility on Wuxi electronic trading was only RMB 500/mt, with traders standing on the sidelines. Trading volumes decreased sharply, with prices between RMB 126,400-127,100/mt.


SHFE copper prices
SHFE aluminum prices
lead prices
zinc prices
tin prices
nickel prices

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