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SMM Base Metals Market Daily Review (2015-3-17)
Mar 18, 2015 10:59CST
SHFE 1505 copper contract met resistance at RMB 42,900/mt during Tuesday’s daytime trading and fell quickly after opening to RMB 42,600/mt.

SHANGHAI, Mar. 18 (SMM) –

SHFE 1505 copper contract met resistance at RMB 42,900/mt during Tuesday’s daytime trading and fell quickly after opening to RMB 42,600/mt. The May-delivery copper then touched a low of RMB 42,260/mt in the afternoon to close at RMB 42,430/mt, posting a decline of RMB 190/mt.

Positions in SHFE 1505 copper contract fell by 9,432 and trading volumes grew 64,464 lots. Positions in SHFE 1506 copper contract surged 22,324.

SHFE most-active copper contract started RMB 200/mt lower at RMB 42,600/mt for Monday’s night session and rose to RMB 42,960/mt on buying support and lower US dollar index. The prices then gave back some gains due to increased short positions and ended the session at RMB 42,740/mt. Positions in the May delivery copper increased 3,950, and trading volumes were 159,558 lots.

Spot copper quoted premiums of RMB 60-140/mt to SHFE 1504 copper contract Tuesday morning. Standard-quality copper traded at RMB 42,430-42,500/mt and high-quality copper sold for RMB 42,470-42,550/mt. Cargo holders were more willing to sell after the April delivery copper rolled out to the front-month contract, fueling oversupply pressure. Spot discounts widened to around RMB 100/mt near midday, and downstream buyers reduced purchases after buying sufficient goods on Monday.

SHFE 1505 aluminum contract climbed above the 60-day moving average after starting Monday’s night session at RMB 13,080/mt, and ended at RMB 13,110/mt. Trading volumes totaled 17,366 lots, with positions up 3,266 to 113,134.

On Tuesday, May aluminum on the SHFE slipped to RMB 13,070/mt before ending at RMB 13,090/mt. Trading volumes totaled 31,158 lots, with positions up 3,280 to 113,148.

Spot aluminum largely traded between RMB 12,850-12,860/mt in Shanghai on Tuesday, discounts of RMB 220-230/mt over SHFE 1503 aluminum contract, versus RMB 12,830-12,850/mt in Wuxi, and RMB 12,860-12,880/mt in Hangzhou. Market inventories keep growing, leaving suppliers anxious to sell. Processors entered the market after watching from the sidelines for several days. Cheaper goods gained favor. In the afternoon, goods were offered at RMB 12,840-12,850/mt, but trading was light.

The most active SHFE lead contract prices started at RMB 12,260/mt for night session on Monday and fell to RMB 12,200/mt following a climb to RMB 12,280/mt. The prices ended the session at RMB 12,205/mt, down by RMB 40/mt. Positions grew 4 to 16,556, and trading volumes were 936.

The May-delivery lead moved between RMB 12,200-12,220/mt Tuesday morning, but fell noticeably in the afternoon to end the daytime trading down RMB 80/mt at RMB 12,165/mt. Trading volumes were 3,610 lots, and positions declined 372 to 16,180.

Goods of Chihong Zn & Ge was offered at RMB 12,350/mt on Tuesday, a premium of RMB 130/mt to SHFE 1505 lead contract prices. Chengyuan and Nanfang were quoted at RMB 12,320/mt. Humon and Shuangyan brands were quoted at RMB 12,280-12,300/mt. Suppliers from lead smelters remained limited. In downstream markets, SMM understood that electric bike battery sales improved.

SHFE 1505 zinc contract rose to RMB 15,800/mt after starting Monday’s night session at RMB 15,765/mt. But the most active contract fell to RMB 15,750/mt later before ending down RMB 20/mt or 0.13% at RMB 15,735/mt. Trading volumes were up 3,610 lots to 40,000 lots, with positions up 1,402 to 165,680.

On Tuesday, May zinc on the SHFE dropped to 15,655/mt after opening at RMB 15,735/mt, due to profit-taking at highs. Finally, the contract ended RMB 65/mt or 0.41% lower at RMB 15,690/mt. Trading volumes shrank 28,404 lots to 96,242 lots, with positions down 1,118 to 163,160.

#0 zinc traded between RMB 15,660-15,700/mt on Tuesday, discounts of RMB 10-50/mt over SHFE 1505 zinc contract. #1 zinc traded between RMB 15,600-15,630/mt. The decline in SHFE 1505 zinc contract allowed spot discounts to narrow. Processors bought only to need. Speculators entered the market as falling inventories in Guangdong, slower inventory growth in Shanghai and maintenance at smelters turned them bullish over prices.

Shuangyan #0 zinc traded between RMB 15,690-15,700/mt, discounts of RMB 20-10/mt over SHFE 1505 zinc contract; Yuguang #0 zinc traded between RMB 15,680-15,690/mt, discounts of RMB 30-20/mt; Qinxin and Qilin #0 zinc traded between RMB 15,660-15,680/mt, discount of RMB 50/mt; SMC #0 zinc prices were RMB 15,630-15,650/mt, discounts of RMB 70-60/mt; Indian #0 zinc prices were RMB 15,590-15,600/mt, discount of RMB 100/mt. In the afternoon, sellers in physical market held back goods after SHFE zinc fell. #0 zinc was offered at discounts of 50-10/mt, while Shuangyan #0 zinc was offered at premiums of RMB 0-10/mt.

In Shanghai spot tin market, some buyers entered the market in anticipation of no further fall in prices. Goods from Yunnan were relatively tight, allowing holders to hold back goods at lows. Mainstream traded prices were RMB 120,000-124,000/mt on Tuesday.

SMM #1 refined nickel prices in Shanghai were RMB 103,300-104,000/mt on Tuesday. The arrival of Russian nickel caused prices to fall, but trading was enlivened with downstream buyers going bargain-hunting. Traded prices were RMB 103,500-104,100/mt in the morning, and remained stable at RMB 103,500-104,200/mt in the afternoon.



SHFE copper prices
SHFE aluminum prices
SHFE lead prices
SHFE zinc prices
Shanghai tin prices
Shanghai nickel prices

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