SMM Base Metals Market Daily Review (2014-12-24)-Shanghai Metals Market

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SMM Base Metals Market Daily Review (2014-12-24)

Price Review & Forecast 04:57:03PM Dec 25, 2014 Source:SMM

SHANGHAI, Dec. 25 (SMM) –

Copper
Copper for March delivery on the Shanghai Futures Exchange, the most active contract, swung by less than RMB 200/mt in Tuesday’s night session after starting at RMB 45,370/mt. The price of the SHFE 1503 copper contract ended down RMB 190/mt at RMB 45,470/mt. Trading volumes for the most active contract totaled some 90,000 lots, while positions added 270.

SHFE copper initially rose to RMB 46,450/mt on Wednesday and advanced further to RMB 45,700/mt at the tail of the trading before ending down RMB 30/mt, or 0.07%, at RMB 45,630/mt. Trading volumes for the most active SHFE copper contract shrank 61,048 lots, while positions shed 2,078.

Spot copper in Shanghai was quoted Wednesday at a RMB 20-140/mt discount to the SHFE 1501 copper contract. Standard- and high-quality copper sold for RMB 46,280-46,340/mt and RMB 46,320-46,420/mt, respectively. Cargo holders of imported copper continued to sell to generate cash as the SHFE/LME copper price ratio improved. Quotations remained mixed with expanding discounts. Downstream producers barely entered the market, while middlemen were also not active on Wednesday. Spot copper was quoted at a RMB 80-160/mt discount in the afternoon trading and traded at RMB 46,200-46,350/mt.

Aluminum
On Tuesday night, SHFE 1503 aluminum contract slid to RMB 13,070/mt after starting at RMB 13,135/mt, and finished the night session at RMB 13,100/mt. Trading volumes totaled 15,602 lots, with positions up 1,142 lots to 130,686 lots.

On Wednesday, the most active contract climbed above RMB 13,100/mt, and ended at RMB 13,140/mt. Trading volumes totaled 37,718 lots, with positions up 4,070 lots to 133,614 lots. Prices may be vulnerable at RMB 13,000/mt.

Spot aluminum largely traded between RMB 13,030-13,050/mt in Shanghai on Wednesday, premiums of RMB 0-20/mt over SHFE 1501 aluminum contract, versus RMB 13,020-13,050/mt in Wuxi, and RMB 13,050-13,060/mt in Hangzhou. Buyers stayed out of the market against year-end cash crunch, sending prices down. In the afternoon, trading came to a virtual standstill.

Lead
Lead for February delivery on the Shanghai Futures Exchange, the most active contract, opened at RMB 12,310/mt in Tuesday’s night session and then rose to RMB 12,440/mt due to increased buying. The price of the SHFE 1502 lead contract slid subsequently to move at RMB 12,350/mt and finished up RMB 70/mt at RMB 12,400/mt. Trading volumes for the most active contract totaled 8,358 lots, while positions added 350 to 21,036.

SHFE lead initially moved at RMB 12,400/mt on Wednesday and later climbed to an intraday high of RMB 12,695/mt before finishing up RMB 170/mt at RMB 12,500/mt. Trading volumes amounted to 18,150 lots, and positions decreased 444 to 20,242.

Supplies from Chihong Zn & Ge in Shanghai traded Wednesday at RMB 12,570-12,580/mt, a RMB 170/mt premium to the most active SHFE 1502 lead contract. Traded prices were RMB 12,550/mt for Nanfang and Humon, and RMB 12,510-12,550/mt for Shuangyan and Yubei. Smelters rushed to sell against year-end liquidity crunch, leading to severe oversupply. Traders and downstream producers entered settlement process and were unwilling to buy on Wednesday.

Zinc
SHFE 1502 zinc contract prices opened at RMB 16,350/mt Monday evening, and then hovered around RMB 16,300/mt, and closing at RMB 16,310/mt, up RMB 5/mt or 0.03%. Trading volumes decreased 18,496 to 63,060 lots, and total positions were down 5,390 to 112,418. SHFE 1502 zinc contract prices opened at RMB 16,310/mt on Tuesday, touching as high as RMB 16380/mt in the morning, then fluctuating between RMB 16,300-16,380/mt, and closing at RMB 16,370/mt, up RMB 65/mt or 0.4%. Trading volumes decreased 15,020 to 129,240 lots, and total positions decreased 11,046 to 106,762. Total positions of SHFE 1503 zinc contracts increased 22,516 to 92,206. SHFE 1502 zinc contract prices are expected to move around the 10-day moving average this evening.

#0 zinc prices were between RMB 16,660-16,740/mt, with spot premiums of RMB 230-300/mt against SHFE 1502 zinc contract prices. #1 zinc prices were between RMB 16,610-16,640/mt. SHFE 1503 zinc contract prices edged up to fluctuate between RMB 16,440-16,450/mt after opening, with spot premiums between RMB 240-300/mt, but narrowing to RMB 230-290/mt due to muted transactions. Some cargo holders sold before the settlement date, but most watched on the sidelines due to year-end cash tightness. Downstream buying interest was weak, and some cargo holders lowered spot premiums to push sales. Nonetheless, overall transactions did not improve. Shuangyan #0 zinc prices were RMB 16,720-16,740/mt, RMB 280-300/mt above SHFE 1502 zinc contract prices. Yuguang #0 zinc prices were RMB 16,700-16,720/mt, RMB 270-290/mt above SHFE 1502 zinc contract prices. Qinxin, Jiulong, Qilin and Mengzi zinc prices were RMB 16,690-16,710/mt, with premiums of RMB 250-270/mt against SHFE 1502 zinc contract prices. Tianlu #0 zinc prices were RMB 16,660-16,680/mt, RMB 230-240/mt above SHFE 1502 zinc contract prices. Peruvian and Mexican #0 zinc prices were RMB 16,620-16,640/mt, RMB 200/mt above SHFE 1502 zinc contract prices. Spot premiums weakened due to inflows of imported zinc, and trading was muted in the afternoon.

Tin
In Shanghai spot tin market, consumption remained sluggish on Wednesday as sharply falling LME tin prices turned buyers bearish. This caused mainstream traded prices to shed another RMB 1,500/mt to RMB 125,000-128,500/mt. Jinlong and Nanshan brand tin traded between RMB 124,500-126,000/mt, RMB 125,000-127,000/mt for Yunxiang and Yunheng brand tin, and RMB 128,500-129,500/mt for Yunxi brand tin.

Nickel
SMM #1 nickel prices were between RMB 108,500-108,800/mt. Spot nickel prices edged up in the morning. Transactions among traders were brisk, but downstream buyers watched on the sidelines, leaving trading muted, and with traded prices between RMB 108,500-109,100/mt. Prices returned to a downward track in the afternoon, with trading decreasing, and traded prices between RMB 108,400-109,000/mt.

 


 

SMM Base Metals Market Daily Review (2014-12-24)

Price Review & Forecast 04:57:03PM Dec 25, 2014 Source:SMM

SHANGHAI, Dec. 25 (SMM) –

Copper
Copper for March delivery on the Shanghai Futures Exchange, the most active contract, swung by less than RMB 200/mt in Tuesday’s night session after starting at RMB 45,370/mt. The price of the SHFE 1503 copper contract ended down RMB 190/mt at RMB 45,470/mt. Trading volumes for the most active contract totaled some 90,000 lots, while positions added 270.

SHFE copper initially rose to RMB 46,450/mt on Wednesday and advanced further to RMB 45,700/mt at the tail of the trading before ending down RMB 30/mt, or 0.07%, at RMB 45,630/mt. Trading volumes for the most active SHFE copper contract shrank 61,048 lots, while positions shed 2,078.

Spot copper in Shanghai was quoted Wednesday at a RMB 20-140/mt discount to the SHFE 1501 copper contract. Standard- and high-quality copper sold for RMB 46,280-46,340/mt and RMB 46,320-46,420/mt, respectively. Cargo holders of imported copper continued to sell to generate cash as the SHFE/LME copper price ratio improved. Quotations remained mixed with expanding discounts. Downstream producers barely entered the market, while middlemen were also not active on Wednesday. Spot copper was quoted at a RMB 80-160/mt discount in the afternoon trading and traded at RMB 46,200-46,350/mt.

Aluminum
On Tuesday night, SHFE 1503 aluminum contract slid to RMB 13,070/mt after starting at RMB 13,135/mt, and finished the night session at RMB 13,100/mt. Trading volumes totaled 15,602 lots, with positions up 1,142 lots to 130,686 lots.

On Wednesday, the most active contract climbed above RMB 13,100/mt, and ended at RMB 13,140/mt. Trading volumes totaled 37,718 lots, with positions up 4,070 lots to 133,614 lots. Prices may be vulnerable at RMB 13,000/mt.

Spot aluminum largely traded between RMB 13,030-13,050/mt in Shanghai on Wednesday, premiums of RMB 0-20/mt over SHFE 1501 aluminum contract, versus RMB 13,020-13,050/mt in Wuxi, and RMB 13,050-13,060/mt in Hangzhou. Buyers stayed out of the market against year-end cash crunch, sending prices down. In the afternoon, trading came to a virtual standstill.

Lead
Lead for February delivery on the Shanghai Futures Exchange, the most active contract, opened at RMB 12,310/mt in Tuesday’s night session and then rose to RMB 12,440/mt due to increased buying. The price of the SHFE 1502 lead contract slid subsequently to move at RMB 12,350/mt and finished up RMB 70/mt at RMB 12,400/mt. Trading volumes for the most active contract totaled 8,358 lots, while positions added 350 to 21,036.

SHFE lead initially moved at RMB 12,400/mt on Wednesday and later climbed to an intraday high of RMB 12,695/mt before finishing up RMB 170/mt at RMB 12,500/mt. Trading volumes amounted to 18,150 lots, and positions decreased 444 to 20,242.

Supplies from Chihong Zn & Ge in Shanghai traded Wednesday at RMB 12,570-12,580/mt, a RMB 170/mt premium to the most active SHFE 1502 lead contract. Traded prices were RMB 12,550/mt for Nanfang and Humon, and RMB 12,510-12,550/mt for Shuangyan and Yubei. Smelters rushed to sell against year-end liquidity crunch, leading to severe oversupply. Traders and downstream producers entered settlement process and were unwilling to buy on Wednesday.

Zinc
SHFE 1502 zinc contract prices opened at RMB 16,350/mt Monday evening, and then hovered around RMB 16,300/mt, and closing at RMB 16,310/mt, up RMB 5/mt or 0.03%. Trading volumes decreased 18,496 to 63,060 lots, and total positions were down 5,390 to 112,418. SHFE 1502 zinc contract prices opened at RMB 16,310/mt on Tuesday, touching as high as RMB 16380/mt in the morning, then fluctuating between RMB 16,300-16,380/mt, and closing at RMB 16,370/mt, up RMB 65/mt or 0.4%. Trading volumes decreased 15,020 to 129,240 lots, and total positions decreased 11,046 to 106,762. Total positions of SHFE 1503 zinc contracts increased 22,516 to 92,206. SHFE 1502 zinc contract prices are expected to move around the 10-day moving average this evening.

#0 zinc prices were between RMB 16,660-16,740/mt, with spot premiums of RMB 230-300/mt against SHFE 1502 zinc contract prices. #1 zinc prices were between RMB 16,610-16,640/mt. SHFE 1503 zinc contract prices edged up to fluctuate between RMB 16,440-16,450/mt after opening, with spot premiums between RMB 240-300/mt, but narrowing to RMB 230-290/mt due to muted transactions. Some cargo holders sold before the settlement date, but most watched on the sidelines due to year-end cash tightness. Downstream buying interest was weak, and some cargo holders lowered spot premiums to push sales. Nonetheless, overall transactions did not improve. Shuangyan #0 zinc prices were RMB 16,720-16,740/mt, RMB 280-300/mt above SHFE 1502 zinc contract prices. Yuguang #0 zinc prices were RMB 16,700-16,720/mt, RMB 270-290/mt above SHFE 1502 zinc contract prices. Qinxin, Jiulong, Qilin and Mengzi zinc prices were RMB 16,690-16,710/mt, with premiums of RMB 250-270/mt against SHFE 1502 zinc contract prices. Tianlu #0 zinc prices were RMB 16,660-16,680/mt, RMB 230-240/mt above SHFE 1502 zinc contract prices. Peruvian and Mexican #0 zinc prices were RMB 16,620-16,640/mt, RMB 200/mt above SHFE 1502 zinc contract prices. Spot premiums weakened due to inflows of imported zinc, and trading was muted in the afternoon.

Tin
In Shanghai spot tin market, consumption remained sluggish on Wednesday as sharply falling LME tin prices turned buyers bearish. This caused mainstream traded prices to shed another RMB 1,500/mt to RMB 125,000-128,500/mt. Jinlong and Nanshan brand tin traded between RMB 124,500-126,000/mt, RMB 125,000-127,000/mt for Yunxiang and Yunheng brand tin, and RMB 128,500-129,500/mt for Yunxi brand tin.

Nickel
SMM #1 nickel prices were between RMB 108,500-108,800/mt. Spot nickel prices edged up in the morning. Transactions among traders were brisk, but downstream buyers watched on the sidelines, leaving trading muted, and with traded prices between RMB 108,500-109,100/mt. Prices returned to a downward track in the afternoon, with trading decreasing, and traded prices between RMB 108,400-109,000/mt.