SHANGHAI, Apr. 30 (SMM) –
The July-delivery SHFE copper fell below RMB 44,000/mt soon after opening on Wednesday and hit a low of RMB 43,730/mt. In the afternoon, stock market rally helped drive the prices up briefly, but the most active contract fell back again and ended down RMB 120/mt at RMB 43,730/mt. Positions increased 33,840 and trading volumes declined 6,238 lots. SHFE copper suffered selling pressure with longs booking profits at highs.
Spot copper quoted at premiums of RMB 100-150/mt in Shanghai Wednesday morning. Standard-quality copper traded at RMB 44,120-44,160/mt, and high-quality copper sold for RMB 44,140-44,200/mt.
Supply was ample in spot copper market, and dealers rarely entered the market. Downstream buyers seldom purchased due to tight cash. Spot premiums were offered at premiums of RMB 70-130/mt in the afternoon, and some traders and downstream buyers purchased at lows.
SHFE 1507 aluminum contract slipped to RMB 13,360/mt on Wednesday morning. In the afternoon, prices fell further to RMB 13,290/mt as plunging SHFE copper dampened market sentiment. Finally, the contract ended at RMB 13,305/mt. Trading volumes totaled 66,102 lots, and positions were up 4,824 to 141,968. Technically, prices are expected to stage a rally, though.
Spot aluminum largely traded between RMB 13,120-13,140/mt in Shanghai on Wednesday, discounts of RMB 170-190/mt over SHFE 1505 aluminum contract, versus RMB 13,090-13,110/mt in Wuxi, and RMB 13,150-13,160/mt in Hangzhou. Some large suppliers and traders in Shanghai that have completed delivery under term contracts cut shipment. Traders increased purchases slightly after spot discounts narrowed. Supply in Wuxi remained ample. Processors began to stockpile goods for the upcoming May Day holiday, but the increase in purchasing volumes was limited. In the afternoon, holders of hedged goods were more willing to sell after SHFE aluminum fell, and some went bargain hunting.
The most active SHFE 1506 lead ended at RMB 13,720/mt Tuesday night, down RMB 70/mt. The June delivery lead dropped to RMB 13,645/mt Wednesday morning but later rolled back its early losses on profit-taking. The most active contract ended the day at RMB 13,730/mt, down RMB 60/mt.
In spot lead market, Chihong Zn & Ge and Nanfang offered RMB 13,870/mt, with premiums of RMB 150/mt to SHFE 1506 lead contract prices. Humon and Tongguan brands quoted RMB 13,820-13,850/mt. Tongguan, Nanfang and Humon shipped out some goods, driving up spot supply, but most smelters held prices around RMB 13,850/mt. Some hedged goods were offered at lower prices and favored by downstream buyers. Transactions were still limited for high-priced goods. The price gap between secondary and #1 lead remained at RMB 400/mt. In Henan, traded prices were around RMB 13,800/mt. Downstream producers in Jiangxi replenished stocks for the upcoming May Day holiday.
The July-delivery SHFE zinc mainly hovered around RMB 17,000/mt Wednesday and touched RMB 17,035/mt in the afternoon before falling with iron ore prices. The prices finally closed at RMB 16,860/mt, down RMB 135/mt. Trading volumes fell by 34,744 lots and positions dropped 3,356.
Prices of #0 zinc were RMB 16,790-16,840/mt, with discounts of RMB 90-120/mt to SHFE 1506 zinc contract and RMB 130-160/mt to SHFE 1507 zinc contract. #1 zinc traded at RMB 16,740-16,750/mt. Smelters moved goods normally, but traders were little interested in making transactions. Downstream buyers mostly watched from the sidelines.
In #0 zinc market, Shuangyan brand sold for RMB 16,820-16,840/mt, with discounts of RMB 130-140/mt to SHFE 1507 zinc contract. Yuguang, Qinxin and Qiling traded at RMB 16,790-16.820/mt, with discounts of RMB 140-160/mt to SHFE 1507 lead contract. Prices were RMB 16,780-16,800/mt for SMC and Baohui #0 zinc, with discounts of RMB 160-170/mt to the July-delivery zinc, and prices of Indian and Holand #0 zinc were RMB 16,710-16,730/mt.
In Shanghai spot tin market, mainstream traded prices rose to RMB 115,500-117,000/mt on Wednesday morning. But prices fell back to RMB 115,000-116,500/mt in the afternoon as demand cooled. Traders lost buying interest as narrowing price gap between SHFE tin prices and Shanghai spot prices created little room for arbitrage.
The most active SHFE 1507 nickel opened Tuesday’s evening session at RMB 102,490/mt and then hit a high of RMB 104,390/mt, near Monday evening’s highest price. Later the most active contract dropped to close at RMB 103,330/mt. Trading volumes climbed 54,670 to 167,028 lots and total positions rose 4,342 to 116,300.
SHFE 1507 nickel opened at RMB 103,230/mt Wednesday morning and then immediately fell fast. But later the most active contract hovered between RMB 102,000-102,600/mt. The July delivery nickel lurched down to move lower at RMB 102,500/mt after 2 pm but rebounded slightly at the tail of trading, to close the day at RMB 101,020/mt. Trading volumes surged 31,912 to 317,634 lots. But positions dropped 624 to 111,334 on profit-taking.
In Shanghai spot nickel market, SMM #1 nickel prices were RMB 97,500-100,200/mt on Wednesday. In the morning, Jinchuan nickel prices stayed firm. Downstream buyers were active in the market. Most deals closed between RMB 97,700-100,000/mt. In the afternoon, Downstream buyers held to the sidelines after SHFE nickel fell, dragging mainstream traded prices down to RMB 97,300-99,900/mt.