SMM Base Metals Market Daily Review (2015-4-28)

Published: Apr 29, 2015 13:21

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The SHFE 1507 copper contract dropped after starting Tuesday’s daytime trading, dipping to RMB 43,570/mt, but stabilized in the afternoon and hover around RMB 43,700/mt.

SHANGHAI, Apr. 29 (SMM) –

Copper
The SHFE 1507 copper contract dropped after starting Tuesday’s daytime trading, dipping to RMB 43,570/mt, but stabilized in the afternoon and hover around RMB 43,700/mt. The prices closed up RMB 70/mt at RMB 43,740/mt. Positions increased 26,780 and trading volumes fell by 5,814 lots.

Spot premiums in the Shanghai copper market were RMB 90-150/mt Tuesday. Prices remained at RMB 43,980-44,180/mt for standard-quality copper and RMB 44,000-44,200/mt for high-quality copper.

Some cargo holders rushed to sell in the morning and cut prices, driving down spot premiums, especially those for high-quality copper, but transactions were limited. As SHFE copper slipped more than RMB 250/mt around the midday, some buyers entered the market, improving spot trades. Downstream producers purchased more at RMB 44,000/mt.

Aluminum
SHFE 1507 aluminum contract fell to RMB 13,300/mt on Tuesday morning, and dropped further to RMB 13,280/mt in afternoon session. Prices rallied later to end at RMB 13,320/mt. Trading volumes totaled 52,922 lots, and positions were up 3,752 to 137,144. Technically, prices are expected to stage a rally, though.

Spot aluminum largely traded between RMB 13,090-13100/mt in Shanghai on Tuesday, discounts of RMB 180-190/mt over SHFE 1505 aluminum contract, versus RMB 13,070-13,090/mt in Wuxi, and RMB 13,120-13,130/mt in Hangzhou. SHFE 1505 aluminum contract gave back most of gains made in previous day, promoting sellers in spot market to cut offers. Processors went bargain hunting in small amounts, while traders showed little interest. In the afternoon, market turned quiet.

Lead
The most active SHFE 1506 lead ended at RMB 13,840/mt Monday night on the speech that China will employ Quantitative Easing policy, up RMB120/mt.

SHFE 1506 lead moved lower to close at RMB 13,740/mt Tuesday due to the speech of China’s Quantitative Easing policy from chief economist of PBOC, up RMB 20/mt. Trading volumes totaled 8,828 lots and positions dropped 958 to 15,421.

In spot lead market, Nanfang offered RMB 13,880/mt, with premiums of RMB 120/mt to SHFE 1506 lead contract prices. Humon quoted RMB 13,880/mt early, but then cut quotation to RMB 13,850/mt. Quotes for Tongguan brand were about RMB 13,820/mt and Shuangyan brand was offered at a discount of RMB 40/mt to the May-delivery lead. Smelters remained unwilling to move goods, and traders held prices firm. Downstream buyers refrained from buying despite the upcoming May Day holiday. In Henan, some traders cut prices to RMB 13,750-13,800/mt. Goods from Yunnan’s Gejiu region were offered at RMB 13,600/mt in Guangdong.

Zinc
SHFE 1507 zinc contract opened at RMB 17,075/mt on Tuesday and slipped to RMB 16,900/mt at one point as longs booked profits. However, the July-delivery zinc followed LME zinc up at the tail of trading and ended up RMB 250/mt at RMB 17,015/mt. Trading volumes grew 19,790 lots to 175,154 lots, and positions increased 11,260 to 144,450.

Prices of #0 zinc were RMB 16,770-16,810/mt, with discounts of RMB 90-120/mt to SHFE 1506 zinc contract. #1 zinc traded at RMB 16,720-16,740/mt. Zinc smelters were more active in selling on rising zinc prices, and traders also increased supply considering tight cash at the end of the month. Downstream buyers were reluctant to buy, however, with SHFE zinc nearing RMB 17,000/mt.

In #0 zinc market, Shuangyan brand sold for RMB 16,800-16,810/mt, with discounts of RMB 90-100/mt to SHFE 1506 zinc contract. Yuguang, Qinxin and Qiling traded at RMB 16,780-16,790/mt, with discounts of RMB 110-120/mt to SHFE 1506 lead contract. Prices were RMB 16,750-16,760/mt for SMC #0 zinc, with discounts of RMB 140-150/mt to the June-delivery zinc, and prices of Indian #0 zinc were RMB 16,720-16,730/mt and RMB 16,570-16,580/mt.

Tin
In Shanghai spot tin market, mainstream traded prices followed SHFE tin up further to RMB 115,000-117,000/mt on Tuesday. Recent closures at Yunnan Tin Group and China Tin Group also lent support to prices. Goods from Yunnan Tin Group traded between RMB 116,000-117,000/mt.

Nickel
The most active SHFE 1507 nickel opened Monday’s evening session at RMB 102,490/mt and then hit a high of RMB 104,530/mt, the highest since the launch of SHFE 1507 nickel contracts on Mar. 27. Later the most active contract edged down to close at RMB 103,270/mt, up 1.75%. Trading volumes surged 111,000 to 173,000 lots, but total positions dropped 4,056 to 112,234.

SHFE 1507 nickel opened at RMB 103,160/mt Tuesday morning and lost its rising momentum after 2-day rise, to move lower at RMB 101,420/mt. But the July delivery nickel edged up at the tail of trading, to end at RMB 102,650/mt, off 0.6%.Trading volumes totaled 285,722 lots and positions dropped 4,332 to 111,958.

In Shanghai spot nickel market, SMM #1 nickel prices were between RMB 98,000-99,900/mt on Tuesday. In the morning, imported nickel traded flat with 1506 nickel contract on the Wuxi electronic trading. Downstream producers bought as needed, leaving mainstream traded prices between 98,100-99,700/mt. In the afternoon, premiums of Jinchuan expanded due to tight supply, while Russian nickel traded at discounts due to ample supply. Mainstream traded prices were between 97,600-99,600/mt.

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

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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