SMM Base Metals Market Daily Review (2015-4-2)

SHANGHAI, Apr. 3 (SMM) – 

 

The SHFE copper for June delivery hit resistance at RMB 43,600/mt twice after starting Thursday’s daytime trading and closed at RMB 43,520/mt, up RMB 140/mt. Positions in the most active contract decreased 9388, while trading volumes rose by 28,526 lots. Trading on London Metal Exchange will be closed Friday.

 

Spot copper in Shanghai market quoted between a discount of RMB 20/mt and a premium of RMB 50/mt to SHFE 1504 copper contract Thursday morning, with standard-quality copper trading at RMB 43,400-43,630/mt and high-quality copper selling for RMB 43,450-43,650/mt.

 

Goods holders offered discounts of RMB 0-30/mt early today, luring traders into buying and enlivening transactions. Sellers then offered premiums of RMB 30-50/mt, and trading activities declined. Spot premiums were still heard even after a RMB 200/mt rally in SHFE copper. Prices for standard-quality copper remained firm due to limited supply. Some large trade houses built stocks.  

Aluminum      

SHFE 1506 aluminum contract slipped to RMB 13,330/mt after starting Wednesday’s night session at RMB 13,350/mt, and closed at a session high of RMB 13,380/mt. Trading volumes totaled 9,208 lots, with positions up 786 to 126,186. 

 

On Thursday, June aluminum on the SHFE rose to RMB 13,400/mt, but then retreated to RMB 13,375/mt before ending at RMB 13,370/mt. Trading volumes totaled 27,312 lots, with positions up 3,002 to 128,402.   

 

Spot aluminum largely traded between RMB 13,280-13,290/mt in Shanghai on Thursday, discounts of RMB 110-120/mt over SHFE 1504 aluminum contract, versus RMB 13,240-13,270/mt in Wuxi, and RMB 13,320-13,330/mt in Hangzhou. Hedged goods flowed in due to narrowing spot discounts, pushing up market supply. Downstream demand picked up slightly. In the afternoon, trading became muted. 

SHFE 1506 lead contract prices started at RMB 12,390/mt for night trading Wednesday and moved higher to end the session at RMB 12,700/mt, up RMB 340/mt.

 

The June delivery lead contract moved between RMB 12,450-12,500/mt during the daytime trading Thursday, and closed at RMB 12,500/mt, up RMB 140/mt. Trading volumes were 2,936 lots, and positions increased 876 to 12,610. 

 

In spot lead market, Chihong Zn & Ge’s lead quoted at RMB 12,500-12,520/mt, a premium of RMB 30/mt to SHFE 1506 lead contract. Goods of Nanfang and Chengyuan were offered at RMB 12,450-12,460/mt. Humon’s goods were offered at RMB 12,430-12,450/mt. Some downstream buyers built stocks for the Tomb Sweeping Day holiday. In Henan, smelters reported lower inventories due to decent sales, and spot lead quoted at a discount of RMB 30-50/mt to SMM refined lead prices. 

SHFE 1506 zinc contract prices opened at RMB 15,925/mt Wednesday evening, then inched up to RMB 16,030/mt, and closed the day at RMB 16,025/mt, up RMB 70/mt or 0.44%. SHFE 1506 zinc contract prices opened at RMB 16,025/mt on Thursday, and met resistance at the 60-day moving average, erasing some gains as a large number of longs left the market, which once dipped to RMB 15,960/mt and closed at RMB 16,000/mt, up RMB 45/mt or 0.28%. Trading volumes increased 17,294 to 102,918 lots, and total positions declined 1,730 to 124,770. SHFE 1506 zinc contract prices are expected to remain steady this evening.

 

#0 zinc prices were between RMB 15,880-15,910/mt, RMB 100-80/mt below SHFE 1506 zinc contract prices and RMB 130-90/mt below SHFE 1506 zinc contract prices. #1 zinc was traded between RMB 15,770-15,790/mt. SHFE 1506 zinc contract prices fluctuated between RMB 15,970-16,000/mt after opening, up RMB 40/mt. supply of common brands was tight, with prices with Shuangyan zinc prices narrowing to zero. Trading between traders increased on rising SHFE zinc price volatility, and downstream buyers purchased as needed. Nonetheless, trading improved. Shuangyan #0 zinc prices were RMB 15,900-15,910/mt, RMB 100-80/mt below SHFE 1506 zinc contract prices. Shuangyan #0 zinc prices were RMB 15,850-15,870/mt, RMB 100-90/mt below SHFE 1506 zinc contract prices. Yuguang, Qinxin and Qilin #0 zinc prices were RMB 15,880-15,900/mt, with spot discounts of RMB 100/mt against SHFE 1506 zinc contract prices. Tongguan, Haolong and Bailing #0 zinc prices were RMB 15,800-15,810/mt, with spot discounts of RMB 160-130/mt against SHFE 1506 zinc contract prices. SMC and AZ #0 zinc prices were RMB 15,840-15,860/mt, with spot discounts of RMB 130-120/mt against SHFE 1506 zinc contract prices. Indian #0 zinc prices were RMB 15,800-15,810/mt, with spot discounts of RMB 160/mt against SHFE 1506 zinc contract prices. SHFE 1506 zinc contract prices fluctuated narrowly in the afternoon, with discounts steady and transactions brisk.

 

In Shanghai spot tin market, downstream demand picked up slightly on Thursday. Mainstream traded prices were RMB 117,500-119,000/mt. Nanshan brand tin traded between RMB 117,000-117,500/mt, and RMB 118,500-119,000/mt for Yunxi brand tin. 

SMM #1 nickel prices were between RMB 97,000-97,400/mt. Spot premiums held stable in the afternoon. Downstream buying interest weakened as Jinchuan Group lowered prices, with trading muted. Russian nickel prices were RMB 1,000/mt below Jinchuan nickel prices, with traded prices of RMB 95,900-97,400/mt. LME nickel prices climbed in the afternoon, driving up spot prices in Shanghai. Jinchuan Group sold goods which, combined with sufficient imported nickel supply, pulled down spot discounts. Downstream purchases decreased further, with traded prices of RMB 97,000-98,500/mt. Jinchuan lowered prices by RMB 6,000/mt to RMB 98,000/mt.