SMM Base Metals Market Daily Review (2014-11-18)-Shanghai Metals Market

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SMM Base Metals Market Daily Review (2014-11-18)

Price Review & Forecast 08:21:48AM Nov 20, 2014 Source:SMM

SHANGHAI, Nov. 19 (SMM) –

Copper
Copper for January delivery on the Shanghai Futures Exchange, the most active contract, started at RMB 47,490/mt during Monday’s night session and then surged to RMB 47,700/mt. The price of the SHFE 1501 copper contract retreated afterwards to RMB 47,600/mt and closed up RMB 80/mt at RMB 47,580/mt. During the night session, trading volumes for the most active contract fell slightly to about 70,000 lots, but positions added by 1,516 lots.

On Tuesday, SHFE copper initially slid to RMB 47,450/mt, but rebounded to RMB 47,700/mt at the tail of the trading before ending up RMB 110/mt, or 0.23%, at RMB 47,610/mt. Trading volumes for the SHFE 1501 copper contract decreased by 97,080 lots, while positions fell by 6,482 lots.

Physical copper in Shanghai was quoted Tuesday at a RMB 80-160/mt premium to the SHFE 1412 copper contract. Traded prices were RMB 47,900-47,960/mt for standard-quality copper and RMB 47,940-48,020/mt for high-quality copper.

As SHFE copper leveled off, cargo holders quoted prices at a premium again on Tuesday. Sufficient supply, however, caused spot premiums to fall, while SHFE copper back-month contracts strengthened, leaving little arbitrage opportunities for middlemen. Cargo holders tried to push up premiums. At the same time, downstream producers increased purchases. Nevertheless, trading activity remained sluggish on Tuesday. During the afternoon trading session, spot copper was quoted at a RMB 120-180/mt premium and traded at RMB 47,950-48,050/mt.

Aluminum
On Monday night, SHFE 1501 aluminum contract dropped to RMB 13,740/mt after starting at RMB 13,780/mt due to profit-taking at highs, and finished the night session at RMB 13,750/mt. Trading volumes totaled 12,398 lots, with positions up 878 lots to 139,046 lots.

On Tuesday, the most active contract dropped to RMB 13,685/mt as depressed Japanese and US economic data released overnight continued to weigh on investor sentiment. Prices recovered some losses later before ending at RMB 13,725/mt. Trading volumes totaled 28,836 lots, with positions down 5,754 lots to 133,292 lots.

Spot aluminum largely traded at RMB 13,640-13,650/mt in Shanghai on Tuesday, discounts of RMB 40-50/mt over SHFE 1412 aluminum contract, versus RMB 13,630-13,640/mt in Wuxi and RMB 13,670-13,680/mt in Hangzhou. Trading activity waned compared with a day earlier. In the afternoon, markets turned quiet.

Lead
Lead for January delivery on the Shanghai Futures Exchange, the most active contract, started at RMB 13,500/mt during Monday’s night session, and closed down RMB 10/mt at RMB 13,490/mt.

On Tuesday, SHFE lead fell as low as RMB 13,445/mt, dampened by sharp delines in the Shanghai Composite Index, but rebounded at the tail of the trading to end up RMB 35/mt at RMB 13,535/mt. Trading volumes for the SHFE 1501 lead contract totaled 1,856 lots and positions gained 96 lots to 16,398 lots.

Chihong Zn & Ge and Tongguan brands in Shanghai sold for RMB 13,480-13,490/mt on Tuesday, a RMB 20/mt premium to the most active SHFE 1501 lead contract. Traded prices were RMB 13,470/mt for Hanjiang and Humon brands and RMB 13,440-13,450/mt for Yubei brand. Chihong Zn & Ge and Humon moved goods, whereas some smelters were unwilling to sell at low prices. Traders still rushed to sell to generate cash. This left sufficient supply in the market. Downstream producers, however, became even more disinclined to buy on Tuesday after SHFE lead fell, leading to light trading.

Zinc

SHFE 1501 zinc contract prices opened at RMB 16,660/mt Monday evening, then hovered between USD 16,710-16,750/mt, and closing at RMB 16,715/mt, up RMB 20/mt or 0.12%. Trading volumes were down 95,786 to 90,524 lots, and total positions increased 5,618 to 163,664 lots. SHFE 1501 zinc contract prices opened at RMB 16,715/mt Tuesday, falling to RMB 16,630/mt in the morning, but edged up in the afternoon, and closing at RMB 16,780/mt, up RMB 85/mt or 0.51%. Trading volumes were down 51,292 to 255,820 lots, and total positions increased 10,012 to 168,058 lots. SHFE 1501 zinc contract prices should consolidate this evening.

#0 zinc prices were between RMB 16,880-16,970/mt, with spot premiums of RMB 220-310/mt against SHFE 1501 zinc contract prices. #1 zinc prices were between RMB 16,820-16,840/mt, RMB 170-180/mt above SHFE 1501 zinc contract prices. SHFE 1501 zinc contract prices fell to RMB 16,660/mt after opening, down RMB 50/mt from the previous trading day, but with spot premiums largely unchanged. Shuangyan zinc supply was limited, causing spot premiums to expand to RMB 300-310/mt, and with price spread with other regular brands expanding to RMB 50-80/mt. Smelters and cargo holders sold actively in anticipation of narrower spot premiums. But downstream buyers purchased as needed, leaving overall transactions muted. Shuangyan #0 zinc prices were RMB 16,910-16,920/mt. Yuguang #0 zinc prices were RMB 16,960-16,980/mt, with spot premiums of RMB 230-240/mt above SHFE 1501 zinc contract prices at the Qichu warehouse. Qinxin, Jiulong, Baiyin, Qilin and Mengzi zinc prices were RMB 16,880-16,900/mt. Baohui and Mexican zinc prices were RMB 16,870-16,890/mt. Tiefeng and Tongguan #0 zinc prices were RMB 16,860-16,890/mt. SHFE 1501 zinc prices edged up in the afternoon, touching as high as RMB 16815/mt, allowing traders to hold back goods and keep spot premiums firm. But purchases were muted.

Tin
In Shanghai spot tin market, mainstream traded prices dropped RMB 500/mt to RMB 133,500-136,500/mt on Tuesday. Falling LME tin prices soured sentiment in China’s domestic market. Buyers took a wait-and-see sentiment stance, forcing some sellers to cut offers.

Nickel
SMM #1 nickel prices were between RMB 106,400-106,600/mt. Russian nickel prices were RMB 200-100/mt below Jinchuan nickel, and purchases were only by downstream buyers. Trading was modest due to the lack of arbitrage opportunities. Traded prices were between RMB 106,200-106,500/mt in the morning, and RMB 106,500-107,000/mt in the afternoon. Jinchuan raised nickel prices RMB 500/mt to RMB 107,000/mt, causing downstream buying interest to improve.

SMM Base Metals Market Daily Review (2014-11-18)

Price Review & Forecast 08:21:48AM Nov 20, 2014 Source:SMM

SHANGHAI, Nov. 19 (SMM) –

Copper
Copper for January delivery on the Shanghai Futures Exchange, the most active contract, started at RMB 47,490/mt during Monday’s night session and then surged to RMB 47,700/mt. The price of the SHFE 1501 copper contract retreated afterwards to RMB 47,600/mt and closed up RMB 80/mt at RMB 47,580/mt. During the night session, trading volumes for the most active contract fell slightly to about 70,000 lots, but positions added by 1,516 lots.

On Tuesday, SHFE copper initially slid to RMB 47,450/mt, but rebounded to RMB 47,700/mt at the tail of the trading before ending up RMB 110/mt, or 0.23%, at RMB 47,610/mt. Trading volumes for the SHFE 1501 copper contract decreased by 97,080 lots, while positions fell by 6,482 lots.

Physical copper in Shanghai was quoted Tuesday at a RMB 80-160/mt premium to the SHFE 1412 copper contract. Traded prices were RMB 47,900-47,960/mt for standard-quality copper and RMB 47,940-48,020/mt for high-quality copper.

As SHFE copper leveled off, cargo holders quoted prices at a premium again on Tuesday. Sufficient supply, however, caused spot premiums to fall, while SHFE copper back-month contracts strengthened, leaving little arbitrage opportunities for middlemen. Cargo holders tried to push up premiums. At the same time, downstream producers increased purchases. Nevertheless, trading activity remained sluggish on Tuesday. During the afternoon trading session, spot copper was quoted at a RMB 120-180/mt premium and traded at RMB 47,950-48,050/mt.

Aluminum
On Monday night, SHFE 1501 aluminum contract dropped to RMB 13,740/mt after starting at RMB 13,780/mt due to profit-taking at highs, and finished the night session at RMB 13,750/mt. Trading volumes totaled 12,398 lots, with positions up 878 lots to 139,046 lots.

On Tuesday, the most active contract dropped to RMB 13,685/mt as depressed Japanese and US economic data released overnight continued to weigh on investor sentiment. Prices recovered some losses later before ending at RMB 13,725/mt. Trading volumes totaled 28,836 lots, with positions down 5,754 lots to 133,292 lots.

Spot aluminum largely traded at RMB 13,640-13,650/mt in Shanghai on Tuesday, discounts of RMB 40-50/mt over SHFE 1412 aluminum contract, versus RMB 13,630-13,640/mt in Wuxi and RMB 13,670-13,680/mt in Hangzhou. Trading activity waned compared with a day earlier. In the afternoon, markets turned quiet.

Lead
Lead for January delivery on the Shanghai Futures Exchange, the most active contract, started at RMB 13,500/mt during Monday’s night session, and closed down RMB 10/mt at RMB 13,490/mt.

On Tuesday, SHFE lead fell as low as RMB 13,445/mt, dampened by sharp delines in the Shanghai Composite Index, but rebounded at the tail of the trading to end up RMB 35/mt at RMB 13,535/mt. Trading volumes for the SHFE 1501 lead contract totaled 1,856 lots and positions gained 96 lots to 16,398 lots.

Chihong Zn & Ge and Tongguan brands in Shanghai sold for RMB 13,480-13,490/mt on Tuesday, a RMB 20/mt premium to the most active SHFE 1501 lead contract. Traded prices were RMB 13,470/mt for Hanjiang and Humon brands and RMB 13,440-13,450/mt for Yubei brand. Chihong Zn & Ge and Humon moved goods, whereas some smelters were unwilling to sell at low prices. Traders still rushed to sell to generate cash. This left sufficient supply in the market. Downstream producers, however, became even more disinclined to buy on Tuesday after SHFE lead fell, leading to light trading.

Zinc

SHFE 1501 zinc contract prices opened at RMB 16,660/mt Monday evening, then hovered between USD 16,710-16,750/mt, and closing at RMB 16,715/mt, up RMB 20/mt or 0.12%. Trading volumes were down 95,786 to 90,524 lots, and total positions increased 5,618 to 163,664 lots. SHFE 1501 zinc contract prices opened at RMB 16,715/mt Tuesday, falling to RMB 16,630/mt in the morning, but edged up in the afternoon, and closing at RMB 16,780/mt, up RMB 85/mt or 0.51%. Trading volumes were down 51,292 to 255,820 lots, and total positions increased 10,012 to 168,058 lots. SHFE 1501 zinc contract prices should consolidate this evening.

#0 zinc prices were between RMB 16,880-16,970/mt, with spot premiums of RMB 220-310/mt against SHFE 1501 zinc contract prices. #1 zinc prices were between RMB 16,820-16,840/mt, RMB 170-180/mt above SHFE 1501 zinc contract prices. SHFE 1501 zinc contract prices fell to RMB 16,660/mt after opening, down RMB 50/mt from the previous trading day, but with spot premiums largely unchanged. Shuangyan zinc supply was limited, causing spot premiums to expand to RMB 300-310/mt, and with price spread with other regular brands expanding to RMB 50-80/mt. Smelters and cargo holders sold actively in anticipation of narrower spot premiums. But downstream buyers purchased as needed, leaving overall transactions muted. Shuangyan #0 zinc prices were RMB 16,910-16,920/mt. Yuguang #0 zinc prices were RMB 16,960-16,980/mt, with spot premiums of RMB 230-240/mt above SHFE 1501 zinc contract prices at the Qichu warehouse. Qinxin, Jiulong, Baiyin, Qilin and Mengzi zinc prices were RMB 16,880-16,900/mt. Baohui and Mexican zinc prices were RMB 16,870-16,890/mt. Tiefeng and Tongguan #0 zinc prices were RMB 16,860-16,890/mt. SHFE 1501 zinc prices edged up in the afternoon, touching as high as RMB 16815/mt, allowing traders to hold back goods and keep spot premiums firm. But purchases were muted.

Tin
In Shanghai spot tin market, mainstream traded prices dropped RMB 500/mt to RMB 133,500-136,500/mt on Tuesday. Falling LME tin prices soured sentiment in China’s domestic market. Buyers took a wait-and-see sentiment stance, forcing some sellers to cut offers.

Nickel
SMM #1 nickel prices were between RMB 106,400-106,600/mt. Russian nickel prices were RMB 200-100/mt below Jinchuan nickel, and purchases were only by downstream buyers. Trading was modest due to the lack of arbitrage opportunities. Traded prices were between RMB 106,200-106,500/mt in the morning, and RMB 106,500-107,000/mt in the afternoon. Jinchuan raised nickel prices RMB 500/mt to RMB 107,000/mt, causing downstream buying interest to improve.