SHANGHAI, May 4 (SMM) –
The July-delivery SHFE copper hovered around RMB 44,000/mt last Thursday with investors leaving the market before the May Day holiday. The prices increased at the tail of trading to touch RMB 44,300/mt before ending at RMB 44,240/mt, up RMB 410/mt. Positions in the most active copper contract increased 6,004 and trading volumes grew 7,014 lots.
Spot copper quoted at premiums of RMB 50-100/mt in Shanghai Thursday morning. Standard-quality copper traded at RMB 44,300-44,350/mt, and high-quality copper sold for RMB 44,340-44,400/mt. Traded prices were RMB 44,400-44,550/mt in the afternoon.
Trading activities declined significantly, and some cargo holders intended to deplete inventories on hand before the May Day holiday, and sold at discounts, pushing down spot premiums.
Caution dominated SHFE market on the last trading day before the May Day holiday. SHFE 1507 aluminum contract touched RMB 13,370/mt twice, but then fell back. Finally, prices ended at RMB 13,360/mt. Trading volumes were down 18,882 lots to 472,848 lots, and positions were up 2,898 to 145,866.
Spot aluminum largely traded between RMB 13,110-13,130/mt in Shanghai last Thursday, discounts of RMB 170-150/mt over SHFE 1505 aluminum contract, versus RMB 13,100-13,120/mt in Wuxi, and RMB 13,140-13,150/mt in Hangzhou. Oversupply eased since some traders just completed delivery under term contracts. Downstream demand picked up slightly ahead of the three-day holiday. In the afternoon, traders entered the market after SHFE 1505 aluminum contract crawled up, but market turned quiet after SHFE aluminum fell back.
The most active SHFE 1506 lead hovered between RMB 13,750-13,850/mt Thursday and closed the day at RMB 13,790/mt, up RMB 65/mt. Trading volumes totaled 5,512 lots and positions dropped 1,244 to 13,776. SHFE lead moved temporarily at high prices on upbeat expectation for China’s stimulus measures.
In spot lead market, Nanfang, Humon and Tongguan brands quoted RMB 13,900-13,920/mt, with premiums of RMB 130-150/mt to SHFE 1506 lead contract prices. Shuangyan and Hanjiang brands quoted at RMB 13,870/mt, and Honglu was offered at discount of RMB 50/mt to SHFE 1506 lead contract. Smelters raised price offers and cut shipments, and some goods stored in warehouses for a long period were shipped out with downstream buyers replenishing stocks. Supply remained tight in Henan, and demand was robust in Jiangxi. In Guangdong, goods from Yunnan’s Gejiu region traded at RB 13,610/mt.
SHFE 1507 zinc contract opened at RMB 16,985/mt on Thursday and climbed to RMB 17,110/mt in the afternoon, but surrendered earlier gains due to risk aversion before the May Day holiday and ended at RMB 17,000/mt, up RMB 45/mt, or 0.27%.
Prices of #0 zinc were RMB 16,810-16,840/mt, with discounts of RMB 160-130/mt to SHFE 1507 zinc contract and RMB 120-90/mt to SHFE 1506 zinc contract. #1 zinc traded at RMB 16,740-16,790/mt. Large traders that held a majority of goods of ordinary brands refrained from selling, pushing up prices. Traders and downstream buyers both showed little interest in buying before the May Day holiday.
In #0 zinc market, Shuangyan brand sold for RMB 16,820-16,840/mt, with discounts of RMB 150-130/mt to SHFE 1507 zinc contract. Yuguang, Qinxin and Qiling traded at RMB 16,810-16,830/mt, with discounts of RMB 160-140/mt to SHFE 1507 lead contract. Prices were RMB 16,790-16,820/mt for SMC #0 zinc, with discounts of RMB 180-170/mt to the July-delivery zinc. Trades were thin in the afternoon with companies closing for holiday.
In Shanghai spot tin market, mainstream traded prices were RMB 115,000-117,000/mt last Thursday. Offers below RMB 115,000/mt were not reported after SHFE tin rose in the afternoon. Goods from Yunnan Tin Group traded between RMB 116,000-117,000/mt.
In Shanghai spot nickel market, SMM #1 nickel prices were RMB 97,500-100,200/mt last Thursday. In the morning, spot prices followed SHFE nickel up. Jinchuan Group became more willing to sell. Some Jinchuan nickel was exported back into domestic market. Downstream consumption was sluggish. Most deals closed between RMB 98,700-101,300/mt. In the afternoon, Jinchuan nickel traded flat with 1506 nickel contract on the Wuxi electronic trading. SHFE nickel rose significantly, triggering expectations that Jinchuan Group might raise ex-works prices next week. As such, buying picked up. Mainstream traded prices were RMB 99,000-101,500/mt. Jinchuan Group raised ex-works of nickel by RMB 1,300/mt to RMB 101,300/mt on April 30.