SHANGHAI, Feb. 6 (SMM) – 

 

Copper for April delivery on the Shanghai Futures Exchange, the most active contract, started at RMB 41,360/mt and then dipped to RMB 41,000/mt in Wednesday’s night session. The price of the SHFE 1504 copper contract rebounded to RMB 41,540/mt afterwards before closing up RMB 180/mt at RMB 41,440/mt. Trading volumes for the most active contract rose slightly to some 330,000 lots, while positions gained 5,210.

On Thursday, SHFE copper initially surrendered all gains and slid to RMB 40,930/mt afterwards before ending down RMB 260/mt, or 0.63% at RMB 41,000/mt. Trading volumes shed 42,896 lots, while positions gained 6,650. Trading volumes for the SHFE 1505 lead contract decreased 59,572 lots, while positions increased 13,282.

 

Spot copper was quoted between a RMB 20/mt discount and a RMB 30/mt premium to the SHFE 1502 copper contract in Shanghai on Thursday. Standard- and high-quality copper sold for RMB 41,180-41,320/mt and RMB 41,200-41,380/mt, respectively.

 

Although the People’s Bank of China cut the reserve requirement ratio (RRR) for Chinese banks by 0.5 percentage point, SHFE copper fell on Thursday, fueling market caution. Supply of imported copper, especially hydro-copper, increased. The price of standard-quality copper remained close to that of high-quality copper. Cargo holders that held prices firm confronted poor sales. Middlemen became less active, while downstream producers stayed largely on the sidelines on Thursday. Spot copper was offered between a RMB 40/mt discount and a RMB 20/mt premium, and traded at RMB 41,200-41,320/mt in the afternoon trading. 

 

On Wednesday night, SHFE 1504 aluminum contract climbed to RMB 13,350/mt after starting at RMB 13,200/mt, and finished the night session at RMB 13,310/mt. Trading volumes totaled 38,678 lots, with positions down 3,844 to 137,634.

 

On Thursday, the most active contract fell to 13,180/mt as positive sentiment from the PBOC’s RRR cuts faded. The contract ended at RMB 13,235/mt. Trading volumes totaled 75,206 lots, with positions down 6,302 to 135,176.   

 

Spot aluminum largely traded between RMB 12,980-12,990/mt in Shanghai on Thursday, discounts of RMB 130-140/mt over SHFE 1502 aluminum contract, versus RMB 12,970-12,990/mt in Wuxi and RMB 12,960-12,980/mt in Hangzhou. SHFE 1502 aluminum contract fell, leaving sellers in spot market anxious to sell. Downstream producers showed little buying interest. In the afternoon, trading was muted. 

 

Lead for April delivery on the Shanghai Futures Exchange, the most active contract, opened at RMB 12,520/mt and then edged down to RMB 12,490/mt before finishing up RMB 15/mt at RMB 12,560/mt in Wednesday’s night session. Trading volumes for the SHFE 1504 lead contract totaled 1,190 lots in the night session.

 

On Thursday, SHFE lead closed down RMB 40/mt at RMB 12,505/mt. Trading volumes for the most active contract amounted to 2,978 lots, while positions added 546 to 15,758. 

 

Quotations for Chihong Zn & Ge initially were RMB 12,550/mt and later fell to RMB 12,520/mt in Shanghai on Thursday. Traded prices were RMB 12,530/mt for Nanfang and RMB 12,510/mt for Humon. Lead smelters moved goods modestly, while traders became less active. Downstream producers bought lightly due to the upcoming Chinese New Year holiday and high finished-goods inventories. 

 

SHFE 1504 zinc contract prices opened at RMB 16,340/mt Wednesday evening, then hovered around RMB 16,300/mt, and closed at RMB 16,350/mt, down RMB 30/mt or 0.18%. Trading volumes were down 23,700 to 60,818 lots, and total positions decreased 1,240 to 135,694. SHFE 1504 zinc contract prices opened at RMB 16,350/mt on Thursday. The PBOC lowered deposit reserve ratio by 0.5 percentage point, but this news has been absorbed by the market. SHFE 1504 zinc contract prices fell to RMB 16,235/mt in the afternoon, meeting resistance at RMB 16,300/mt and closing at RMB 16,270/mt, down RMB 110/mt or 0.67%. Trading volumes decreased 52,614 to 120,522 lots, and total positions decreased 2,036 to 134,898. SHFE 1504 zinc contract prices are expected to remain weak and meet resistance at 60-day moving average this evening.

 

#0 zinc prices were between RMB 16,230-16,270/mt, with discounts of RMB 0-40/mt against SHFE 1504 zinc contract prices and RMB 10-50/mt against SHFE 1503 zinc contract prices. #1 zinc prices were RMB 16,170-16,180/mt. SHFE 1504 zinc contract prices fell to RMB 16,260-16,280/mt after opening, with spot discounts narrowing to RMB 0-40/mt. Smelters mostly moved goods actively. When combined with additional inflow of imported zinc and ample supply from cargo holders, supply was healthy. Some downstream buyers replenished stocks ahead of the holiday, causing transactions to improve. This inspired some traders to build stocks, causing overall transactions to grow. Shuangyan #0 zinc prices were RMB 16,260-16,270/mt, RMB 0-10/mt below SHFE 1504 zinc contract prices or RMB 40/mt below the latter. Yuguang #0 zinc prices were RMB 16,240-16,260/mt, with spot discounts of RMB 10-30/mt against SHFE 1504 zinc contract prices. Qinxin and Feilong zinc prices were between RMB 16,230-16,250/mt, RMB 20-40/mt below SHFE 1504 zinc contract prices. SMC and KZ #0 zinc prices were between RMB 16,190-16,200/mt, RMB 90-100/mt below SHFE 1504 zinc contract prices. SHFE 1504 zinc contract prices consolidated in the afternoon, with spot discounts of Qinxin zinc RMB 20-30/mt against SHFE 1504 zinc contract prices, and Shuangyan zinc ranging from RMB 10/mt below to RMB 20/mt above SHFE 1504 zinc contract prices..

In Shanghai spot tin market, closure of downstream producers for the upcoming Chinese New Year holiday left trading thin. Mainstream traded prices lost RMB 500/mt to RMB 124,500-126,500/mt on Thursday. Nanshan, Yunshan and Jinlong brand tin traded between RMB 124,500-124,800/mt, Yunxiang and Tianti brand tin traded between RMB 125,300-125,700/mt, while Yunheng and Yunxi brand tin traded between RMB 126,000-127,000/mt.

 

Nickel   

SMM #1 nickel prices were between RMB 107,400-107,700/mt. Spot nickel prices fell in the morning as some downstream buyers purchased modestly at lows. Traders reported decreasing trading, with traded prices between RMB 107,100-107,900/mt. Spot nickel prices dropped slightly in the afternoon. Some traders left the market earlier yesterday due to sluggish trading, with traded prices between RMB 107,100-107,800/mt. Jinchuan lowered nickel prices by RMB 2,000/mt to RMB 108,000/mt.