SHANGHAI, Jun. 30 (SMM) –
Prices for the most active SHFE copper contract rallied to RMB 49,700/mt after starting Thursday’s night session at RMB 49,540/mt, and ended up RMB 220/mt at RMB 49,630/mt. Trading volumes for the most active contract stood at around 150,000 lots, and positions surged by 10,766 lots.
On Friday, SHFE copper prices hovered mostly around RMB 49,600/mt, and finished up RMB 110/mt, or 0.22%, at RMB 49,520/mt. Trading volumes for the most active contract decreased by 47,052 lots, and positions gained by 5,606 lots.
In the Shanghai physical market, copper was offered Friday at a RMB 160-320 premium over the SHFE front-month copper contract. Traded prices were RMB 50,550-50,650/mt for standard-quality copper and RMB 50,670-50,730/mt for high-quality copper. As SHFE copper prices hovered at high levels, cargo holders moved goods at lower premiums during the last trading day at the end of June. Prices for high-quality copper traded at lower levels due to sufficient supply, while those for standard-quality copper were around RMB 100/mt lower than high-quality copper. Meanwhile, hydro-copper prices were held firm due to shortages of supply. Some middlemen with ample cash flows entered the market to buy, but the majority remained cautious. Downstream producers slightly ramped up purchases ahead of the weekend, with transactions improving slightly on Friday.
As SHFE copper prices steadied during the afternoon trading session, most deliveries were from speculators, with prices holding firm despite ample supply in the market. Physical copper was quoted largely at a RMB 190-340/mt premium and traded basically at prices seen in the morning trading session. SHFE copper stocks increased 3,446 mt to 78,975 mt due to inflows of imported copper.
Last Thursday night, SHFE 1409 aluminum contract slipped after starting at RMB 13,580/mt, and finished the night session at RMB 13,555/mt. Trading volumes totaled 14,438 lots, with positions down 70 lots to 141,154 lots. Last Friday, the most active contract moved higher before paring gains, and closed down RMB 30/mt at RMB 13,540/mt. Trading volumes totaled 21,774 lots, with positions up 3,686 lots to 144,910 lots.
Spot aluminum largely traded between RMB 13,330-13,360/mt in Shanghai last Friday, a discount of RMB 90-120/mt over SHFE 1407 aluminum contract. Mainstream traded prices were RMB 13,340-13,360/mt in Wuxi, and RMB 13,360-13,380/mt in Hangzhou. Consumption picked up ahead of the weekend, pushing prices up. In the afternoon, offers remained stable, with a few deals being done.
Prices for the most active SHFE 1408 lead contract dipped to a low RMB 14,085/mt after starting Thursday’s night session at RMB 14,150/mt, and ended up RMB 15/mt at RMB 14,140/mt. During the night session, trading volumes for the most active contract totaled 270 lots, and positions gained 134 lots to 7,238 lots.
On Friday, SHFE lead prices hovered largely between RMB 14,110-14,145/mt, and closed up RMB 10/mt, or 0.07%, at RMB 14,135/mt. Trading volumes for the most active contract rose 1,200 lots to 1,814 lots, and positions added 64 lots to 7,168 lot.
In the Shanghai physical lead market, goods from Chihong Zn & Ge traded Friday at RMB 13,930-13,950/mt, a RMB 190 discount over the most active SHFE 1408 lead contract. Traded prices were RMB 13,920/mt for Hanjiang brand, RMB 13,940/mt for Nanfang brand, and RMB 13,890/mt for Humon brand, but trading volumes were extremely light. Lead smelters curtailed deliveries after moving goods actively in the past few days, while downstream producers expressed little buying interest due to tight liquidity at the end of June.
SHFE 1409 zinc contract prices opened at RMB 15,805/mt last Thursday evening, then rose to RMB 15,870/mt due to strong long momentum, a record high over the past year, but falling to RMB 15,800/mt as a large number of longs left the market, and closing at RMB 15,810/mt, up RMB 70/mt or 0.44%. SHFE 1409 zinc contract prices opened at RMB 15,810/mt on Friday. As a large number of longs left the market, SHFE 1409 zinc contract prices inched down to RMB 15,800/mt, and dipping to RMB 15,730/mt, and closing at RMB 15,770/mt, up RMB 30/mt or 0.19%. Trading volumes during day session decreased by 17,668 lots, to 39,526 lots, and trading volumes for both day and night sessions increased by 4,102 lots to 107,546 lots, and total positions decreased by 4,912 lots, to 151,814 lots.
#0 zinc prices were between RMB 15,590-15,630/mt, with spot discounts of RMB 140-170/mt against SHFE 1409 zinc contract prices. #1 zinc prices were between RMB 15,530-15,550/mt. Shuangyan branded #0 prices were between RMB 15,620-15,630/mt, and RMB 15,580-15,600/mt for Baohui branded #0 zinc. Prices for Yuguang, Qinxin and Feilong branded #0 zinc were RMB 15,600-15,610/mt. Prices of Dongling branded #0 zinc was RMB 15,630/mt, with supply sufficient. Imported zinc supply was ample, with prices for AZ brand around RMB 15,540/mt, and RMB 15,520-15,530/mt for other brands. SHFE 1409 zinc contract prices inched down, and supply was sufficient due to large amounts of imported zinc arriving. Some traders were actively purchasing at lower prices due to expanding spot discounts, and downstream buyers also built stocks at the week’s end, despite their reticence, causing transactions to improve. SHFE 1409 zinc contract prices leveled out in the afternoon, with #0 zinc prices between RMB 15,600-15,630/mt.
In Shanghai physical tin market, mainstream traded prices remained stable between RMB 138,000-140,000/mt last Friday. Some goods traded as low as RMB 137,500/mt. Trading was modest.
SMM #1 nickel prices were quoted between RMB 127,300-127,900/mt. Jinchuan raised nickel prices by RMB 1,500/mt to RMB 128,000/mt. Transactions were muted at the week’s end, with quotes within SMM price range in the afternoon.