SHANGHAI, Mar. 30 (SMM) –
Copper
SHFE three-month copper contract prices opened at RMB 44,050/mt Thursday evening, then climbed but fell back due to crude oil and US economic indicator releases, meeting resistance at RMB 44,340/mt, with the low-end of the price range of RMB 43,870/mt. The most actively traded copper contracts on the SHFE closed the day at RMB 43,970/mt, up RMB 150/mt or 0.34%. Trading volumes were 296,000 lots, and total positions increased 9,026 to 343,364.
SHFE three-month copper contract prices slumped with LME copper prices after opening on Friday, but found support from RMB 43,360/mt, then stabilized at RMB 43,560/mt. In the afternoon, the most actively traded SHFE copper contracts gained back some losses, and closed the day at RMB 43,770/mt, down RMB 50/mt or 0.11%. Trading volumes were up 141,000 lots, and total positions increased 27,080 to 560,376.
Spot copper was offered at discounts of RMB 100-220/mt to SHFE 1504 copper contract Friday morning. Standard-quality copper traded at RMB 43,420-43,550/mt, and RMB 43,450-43,600 for high-quality copper. Traders were actively stockpiling goods, allowing spot discounts to narrow. Traders and processors scrambled to buy cheap goods after SHFE copper inched down. In the afternoon, traders remained keen to collect goods after SHFE copper rebounded. This allowed spot discounts to shrink further to RMB 50-80/mt. Traded prices rose to RMB 43,670- 43,800/mt.
Aluminum
SHFE 1506 aluminum contract slid to RMB 13,305/mt after starting last Thursday’s night session at RMB 13,380/mt, and closed up RMB 55/mt at RMB 13,335/mt. Trading volumes totaled 11,286 lots, with positions up 1,394 to 123,540.
Last Friday, June aluminum on the SHFE slipped to RMB 13,300/mt in early trading session, but rallied later to close up RMB 50/mt at RMB 13,330/mt. Trading volumes totaled 29,912 lots, with positions down 1,250 to 120,896. Bulls entered the market due to positive news in the property market, but bears did not exit massively.
Spot aluminum largely traded between RMB 13,130-13,140/mt in Shanghai last Friday, discounts of RMB 200-210/mt over SHFE 1504 aluminum contract, versus RMB 13,110-13,120/mt in Wuxi, and RMB 13,140-13,150/mt in Hangzhou. Rising SHFE aluminum and a pick-up in demand allowed sellers to ask for higher prices. In the afternoon, suppliers held back goods at SHFE aluminum fell back.
Lead
SHFE 1505 lead contract prices opened at RMB 12,500/mt last Thursday evening, then fell to RMB 12,415/mt, and closed the day at RMB 12,450/mt, down RMB 25/mt. SHFE 1505 lead contract prices extended losses last Friday, dipping to as low as RMB 12,385/mt, then clawed back some losses, and closed the day at RMB 12,425/mt, down RMB 50/mt. Trading volumes were 2,142 lots, and total positions decreased 528 to 11,914. SHFE 1505 lead contract prices were expected to fluctuate between RMB 12,400-12,600/mt last Friday evening.
In China’s spot markets, Chihong lead prices were RMB 12,410-12,440/mt, flat at SHFE 1505 lead contract prices. Nanfang lead prices were RMB 12,390-12,420/mt, and Hengbang lead prices were RMB 12,380-12,400/mt. Supply increased as the producers of Nanfang and Hengbang lead sold proactively. Trades also moved goods enthusiastically. Some bargain hunters entered the market, allowing trading in Shanghai to improve. Quotes in Henan were firm, RMB 80-100/mt below the average SMM lead price. Quotes in Guangdong were RMB 12,260-12,330/mt, with trading quiet.
Zinc
SHFE 1506 zinc contract prices opened at RMB 16,030/mt Thursday evening, and rose to RMB 16,075/mt, then fell to fluctuate between RMB 15,990-16,020/mt, and closed the day at RMB 16,010/mt, up RMB 40/mt or 0.25%. Trading volumes increased 11,336 to 48,670 lots, and total positions decreased 886 to 124,364. SHFE 1506 zinc contract prices opened at RMB 16,000/mt Friday, then dipped to RMB 15,910/mt, and fluctuated below RMB 16,000/mt, and closed the day at RMB 15,945/mt, down RMB 25/mt or 0.16%. Trading volumes increased 14,944 to 111,646 lots, and total positions decreased 3,592 to 121,658. SHFE 1506 zinc contract prices are expected to test RMB 16,000/mt this evening.
#0 zinc prices were between RMB 15,800-15,830/mt, RMB 110-80/mt below SHFE 1505 zinc contract prices and RMB 120-100/mt below SHFE 1506 zinc contract prices. #1 zinc was traded between RMB 15,680-15,700/mt. SHFE 1505 zinc contract prices fell to RMB 15,930/mt after opening, down RMB 40/mt, with spot discounts narrowing RMB 30/mt. Price spread contracted further. Some cargo holders that are optimistic toward zinc prices held back goods, causing regular brands supply to decrease. When combined with the entry of bargain hunters, spot discounts declined. Downstream buyers purchased as needed. Overall transactions improved, most of which were made between traders. Shuangyan and Huize #0 zinc prices were RMB 15,820-15,830/mt, RMB 100-80/mt below SHFE 1505 zinc contract prices. Yuguang #0 zinc prices were RMB 15,810-15,820/mt, RMB 110-100/mt below SHFE 1505 zinc contract prices. Qinxin, Jiulong and Qilin #0 zinc prices were RMB 15,800-15,810/mt, with spot discounts of RMB 110/mt SHFE 1505 zinc contract prices. SMC #0 zinc prices were RMB 15,790-15,800/mt, with spot discounts of RMB 120-110/mt against SHFE 1505 zinc contract prices. Indian #0 zinc prices were RMB 15,750-15,770/mt, with discounts of RMB 160-150/mt against SHFE 1505 zinc contract prices. SHFE 1506 zinc contract prices remained steady in the afternoon. In China’s spot markets, cargo holders sold modestly, and traders purchased at lower prices limitedly, with spot discounts for regular brands narrowed to RMB 100/mt at one point.
Tin
Shorts dominated on the debut of SHFE 1507 tin contract last Friday. Poor market fundamentals mean that the contract will test support at RMB 118,000/mt.
In Shanghai spot tin market, falling SHFE tin prices left traders anxious to sell last Friday. Downstream producers were cautious about replenishing raw materials. Hence, mainstream traded prices fell to RMB 118,500-121,000/mt.
Nickel
SMM #1 nickel prices were between RMB 102,400-103,600/mt. Spot nickel prices rebounded in the morning. Jinchuan nickel supply remained tight, while Russian nickel supply was healthy, with transactions brisk and traded prices between RMB 102,000-103,400/mt. Spot nickel prices in Shanghai inched lower in the afternoon. Jinchuan nickel prices stayed RMB 2,000/mt above Russian nickel prices due to sufficient Russian nickel supply. Transactions decreased as downstream buyers took a wait-and-see posture, with traded prices between RMB 102,400-103,300/mt.
