SHANGHAI, Jun. 26 (SMM) –

Copper
Prices for the SHFE 1408 copper contract swung by less than RMB 100/mt after starting Tuesday’s night session at RMB 49,440/mt. SHFE copper prices rose to as high as RMB 49,480/mt, and closed down RMB 50/mt at RMB 49,400/mt. During the night session, trading volumes for the SHFE 1408 copper contract stood at around 50,000 lots, and positions contracted by 5,778 lots.

On Wednesday, copper for September delivery became the most active contract on the Shanghai Futures Exchange. The SHFE 1408 copper contract advanced to a high of RMB 49,480/mt, but also sank to RMB 49,210/mt before ending down RMB 10/mt, or 0.02%, at RMB 49,440/mt. The most active SHFE 1409 copper contract hovered largely in the RMB 48,880-49,180/mt range, and finished up RMB 30/mt at RMB 49,130/mt. Trading volumes for the SHFE 1408 copper contract shed by 68,524 lots, and positions lost by 16,152 lots. Trading volumes for the SHFE 1409 copper contract contracted by 30,168 lots, but positions for the most active contract gained by 14,598 lots. The most active SHFE copper contract is expected to trade in ranges for the foreseeable future.

In the Shanghai physical market, copper was offered Wednesday at a RMB 230-430/mt premium over the SHFE front-month copper contract. Traded prices were RMB 50,020-50,150/mt for standard-quality copper and RMB 50,080-50,300/mt for high-quality copper.

After SHFE copper prices fell fractionally, cargo holders stepped up moving goods to raise cash at the end of June, with physical premiums narrowing further. A variety of copper brands were available in the market, and the price gap between high-quality and standard-quality copper contracted. SHFE copper prices extended losses by the midday, and physical copper prices also fell to around RMB 50,000/mt. As a result, some middlemen entered the market to buy low-price goods, but downstream producers remained on the sidelines. Trading activity was modest on Wednesday.

As SHFE copper prices hovered in narrow ranges during the afternoon trading session, high-quality copper supply available in the market decreased fractionally. Physical copper was largely quoted at a RMB 230-420/mt premium and traded at RMB 50,000-50,300/mt, with supply still outstripping demand.

Aluminum     
On Tuesday night, SHFE 1408 aluminum contract drifted lower after starting at RMB 13,525/mt, and finished the night session at RMB 13,465/mt. Trading volumes totaled 25,648 lots, with positions up 106 lots to 123,930 lots. On Wednesday, SHFE 1409 aluminum contract became the most active one, which rebounded after nursing losses at first and closed the day at RMB 13,590/mt. Trading volumes totaled 42,130 lots, with positions up 15,130 lots to 131,148 lots. 

Spot aluminum largely traded between RMB 13,300-13,310/mt in Shanghai and Wuxi on Wednesday, a discount of RMB 80-90/mt over SHFE 1407 aluminum contract. Mainstream traded prices were RMB 13,330-13,340/mt in Hangzhou. Some sellers were anxious to sell as the month-end liquidity crunch is biting in, but buyers showed little interest, bringing prices down. In the afternoon, sellers raised offers slightly after SHFE 1407 aluminum contract moved higher, with trading muted.

Lead
Prices for the most active SHFE 1408 lead contract dipped to as low as RMB 14,120/mt after starting Tuesday’s night session at RMB 14,165/mt, but later rebounded slightly to close down RMB 25/mt at RMB 14,145/mt. During the night session, trading volumes fell sharply to 118 lots, and positions added 14 lots to 7,184 lots.

On Wednesday, SHFE lead prices initially advanced to a high of RMB 14,165/mt, but tracked LME lead prices down subsequently to end down RMB 55/mt at RMB 14,115/mt. Trading volumes for the most active contract totaled 1,120 lots, and positions decreased 98 lots to 7,072 lots.
In the Shanghai physical lead market, goods from Chihong Zn & Ge were offered Wednesday at RMB 13,960/mt, but traded lower at RMB 13,930-13,940/mt, a higher RMB 200/mt discount over the most active SHFE 1408 lead contract. Traded prices were RMB 13,950/mt for Tongguan brand, RMB 13,930/mt for Chengyuan and Nanfang brands, and RMB 13,910-13,920/mt for Hanjiang and Shuangyan brands. Lead smelters ramped up deliveries at the end of June, sending physical prices down around RMB 40/mt from Tuesday’s levels, but downstream producers showed lower buying interest on Wednesday. 

Zinc
SHFE 1409 zinc contract prices opened at RMB 15,710/mt on Tuesday evening, then fell to RMB 15,675/mt, and closing at RMB 15,675/mt, down RMB 45/mt or 0.29%. SHFE 1409 zinc contract prices opened at RMB 15,670/mt on Wednesday, then fell along with LME zinc prices and as a large number of longs left the market, dropping to as low as RMB 15,615/mt. in the afternoon, SHFE 1409 zinc contract prices rose since LME zinc prices strengthened, and closed at RMB 15,715/mt, down RMB 5/mt or 0.03%. Trading volumes during day trading decreased by 15,978 lots, to 47,414 lots, and trading volumes for both day and night sessions decreased by 33,174 lots to 66,500 lots, and total positions increased by 8,094 lots, to 136,838 lots. Total positions of SHFE zinc were up 18,712 lots to 99,674 lots.
 
#0 zinc prices were between RMB 15,520-15,550/mt, with spot discounts of RMB 110-90/mt against SHFE 1409 zinc contract prices. #1 zinc prices were between RMB 15,480-15,500/mt. Shuangyan branded #0 prices were between RMB 15,540-15,550/mt, and RMB 15,520-15,530/mt for Yuguang branded #0 zinc. Prices for Huize and Dongling brands were RMB 15,570/mt, and RMB 15,510-15,520/mt for Baohui branded zinc. Imported zinc supply decreased, with prices firm, and RMB 15,540/mt for AZ brand and RMB 15,520/mt for other imported brands. SHFE 1409 zinc contract prices fluctuated around RMB 15,670/mt after opening, with spot discounts of #0 zinc narrowing to RMB 130-100/mt and cargo holders increasing supply. Supply of Shuangyan branded zinc was ample, with prices between RMB 15,560-15,570/mt. Prices for Yuguang and Qinxin branded #0 zinc were around RMB 15,550/mt. SHFE 1409 zinc contract prices fell during the second trading session, with spot discounts narrowing to RMB 110-90/mt. Supply of Yuguang branded zinc was tight, and imported zinc supply also decreased. But some arbitrage traders released some goods. Traders busy settling lacked interest in operations, and downstream buyers also took a wait-and-see attitude, leaving overall transactions muted. SHFE 1409 zinc contract prices rose in the afternoon, with #0 zinc prices between RMB 15,540-15,570/mt.
 
Tin
 In Shanghai physical tin market, mainstream traded prices remained stable between RMB 138,000-140,000/mt on Wednesday. Most traders were reluctant to sell at discount, while downstream producers showed little interest against poor orders.

Nickel  
SMM #1 nickel prices were quoted between RMB 124,000-124,600/mt, with spot transactions muted. Traders were unwilling to sell at low prices. After prices rose in the afternoon, market players took a wait-and-see attitude, with quotes between RMB 124,600-125,200/mt. Given sluggish end-user demand, transactions were mainly made among traders.