SMM Base Metals Market Daily Review (2015-5-8)-Shanghai Metals Market

Hot Keywords

  • Zinc
  • MMi Iron Ore Port Index
  • Nickel
  • Aluminium
  • Inventory data
  • Futures movement
  • trend forecast
  • Rare earths
  • Evening comments
  • Wanbao Minerals
  • Stainless steel spot
  • Morning comments
  • Macroeconomics
  • Copper
  • price

SMM Base Metals Market Daily Review (2015-5-8)

Price Review & Forecast 10:18:34AM May 11, 2015 Source:SMM
SHANGHAI, May 11 (SMM) – 
 
Copper 
The July-delivery copper hovered near RMB 45,900/mt Friday with resistance at RMB 46,000/mt, and closed up RMB 90/mt at RMB 45,970/mt. Trading volumes declined 52,390 lots, and positions were up 5,250. SHFE reported a 4,861 mt decline in copper stocks in its registered warehouses.
 
Spot copper quoted between a RMB 30/mt discount and a premium of RMB 30/mt to SHFE 1505 copper contract in Shanghai early May 8. Standard-quality copper traded at RMB 45,920-46,050/mt, and high-quality copper sold for RMB 45,950-46,100/mt.
 
SHFE 1506 copper contract prices outperformed SHFE 1505 copper contract, causing some speculators to buy in spot market and sell futures. Discounts on standard-quality copper declined as a result, narrowing spread between high and standard-quality copper. Trading activities declined. 
 
Aluminum      
SHFE 1507 aluminum contract was range-bound last Friday since both longs and shorts were cautious. The contract opened at RMB 13,490/mt and ended at RMB 13,455/mt. Trading volumes totaled 59,728 lots, and positions were down 14,244 to 136,138.     
 
Spot aluminum largely traded between RMB 13,140-13,160/mt in Shanghai last Friday, discounts of RMB 190-210/mt over SHFE 1505 aluminum contract, versus RMB 13,110-13,140/mt in Wuxi, and RMB 13,170-13,180/mt in Hangzhou. Suppliers were eager to sell, but bought in small amounts. In the afternoon, suppliers held offers at RMB 13,140-13,150/mt, but trading was light.
 
Lead
SHFE 1507 lead moved higher to RMB 13,580/mt Friday on expectation for pro-growth measures and ended the day at RMB 13,560/mt, falling RMB 90/mt, or 0.66%. Trading volumes were down 4,830 to 8,424 lots whereas positions climbed 20 to 15,468.
 
In spot lead market, quotes were RMB 13,750/mt for Chengyuan, Shuangyan (packed in plastic) and Tongguan brands, with premiums of RMB 200-250/mt to SHFE 1507 lead contract prices. Shuangyan (packed in iron) quoted at RMB 13,700/mt. Honglu brand was offered at premiums of RMB 100-120/mt to SHFE 1506 lead contract prices. Some traders started moving goods considering high premiums. Downstream producers bought in small amounts before the weekend. Supply remained tight in Henan province, with branded lead offered at RMB 13,800/mt. Trades were robust in Jiangxi. 
 
 Zinc
SHFE 1507 zinc contract prices fluctuated between RMB 17,155-17,215/mt Thursday evening, and closed at RMB 17,200/mt, down RMB 55/mt or 0.32%. Trading volumes decreased 31,024 to 62,286 lots, and total positions declined 1,680 to 168,462. SHFE 1507 zinc contract prices opened at RMB 17,190/mt on Friday, then dipped to as low as RMB 17,045/mt, and closed at RMB 17,105/mt, down RMB 150/mt or 0.87%. Trading volumes increased 8,300 to 165,746 lots, and total positions fell 15,584 to 154,558. SHFE 1507 zinc contract prices are expected to stand at the 5-day moving average this evening.
 
#0 zinc prices were between RMB 16,940-17,010/mt, RMB 150-110/mt below SHFE 1507 zinc contract prices. #1 zinc was traded between RMB 16,920-16,930/mt. SHFE 1507 zinc contract prices fell RMB 17,100/mt during 9:00-10:15 am, but rallied to RMB 17,140/mt during 10:30-11:30 am. Traders lacking arbitrage opportunities held back goods, with spot premiums of RMB 150-130/mt against SHFE 1507 zinc contract prices. Cargo holders sold actively on narrowing spot discounts, leaving supply ample. Some traders purchased goods with spot discounts of RMB 60/mt against SHFE spot-month zinc contract prices, and downstream buyers replenished stocks at the week’s end, causing overall transactions to improve. Spot discounts narrowed to RMB 130-110/mt. 
 
Tin
In Shanghai spot tin market, prices followed SHFE tin down last Friday. Most suppliers cut offers to RMB 120,000-122,000/mt in the morning, but raised offers slightly after SHFE tin rebounded. Downstream consumption was sluggish. Nanshan brand tin traded at RMB 119,800-120,000/mt, RMB 120,500-122,000/mt for Yunxi brand tin, and RMB 121,000/mt for Yunheng and Yunshan brand tin.
 
 Nickel   
SMM #1 nickel prices were between RMB 103,700-109,300/mt. Nickel futures prices rose in the morning. Premiums of Jinchuan nickel remained at RMB 5,000/mt against prices for the most actively traded contracts on the Wuxi electronic trading, or even as high as RMB 5,200-5,500/mt. Downstream buyers were inclined to purchase Russian nickel, leaving trading muted and traded prices between RMB 103,500-109,200/mt. Russian nickel prices edged up as nickel futures prices climbed in the afternoon. Trading was mainly for Russian nickel, with traded prices between RMB 104,400-109,200/mt. Jinchuan raised ex-works prices by RMB 2,000/mt to RMB 110,000/mt.
 
 
 
 
 
 

SMM Base Metals Market Daily Review (2015-5-8)

Price Review & Forecast 10:18:34AM May 11, 2015 Source:SMM
SHANGHAI, May 11 (SMM) – 
 
Copper 
The July-delivery copper hovered near RMB 45,900/mt Friday with resistance at RMB 46,000/mt, and closed up RMB 90/mt at RMB 45,970/mt. Trading volumes declined 52,390 lots, and positions were up 5,250. SHFE reported a 4,861 mt decline in copper stocks in its registered warehouses.
 
Spot copper quoted between a RMB 30/mt discount and a premium of RMB 30/mt to SHFE 1505 copper contract in Shanghai early May 8. Standard-quality copper traded at RMB 45,920-46,050/mt, and high-quality copper sold for RMB 45,950-46,100/mt.
 
SHFE 1506 copper contract prices outperformed SHFE 1505 copper contract, causing some speculators to buy in spot market and sell futures. Discounts on standard-quality copper declined as a result, narrowing spread between high and standard-quality copper. Trading activities declined. 
 
Aluminum      
SHFE 1507 aluminum contract was range-bound last Friday since both longs and shorts were cautious. The contract opened at RMB 13,490/mt and ended at RMB 13,455/mt. Trading volumes totaled 59,728 lots, and positions were down 14,244 to 136,138.     
 
Spot aluminum largely traded between RMB 13,140-13,160/mt in Shanghai last Friday, discounts of RMB 190-210/mt over SHFE 1505 aluminum contract, versus RMB 13,110-13,140/mt in Wuxi, and RMB 13,170-13,180/mt in Hangzhou. Suppliers were eager to sell, but bought in small amounts. In the afternoon, suppliers held offers at RMB 13,140-13,150/mt, but trading was light.
 
Lead
SHFE 1507 lead moved higher to RMB 13,580/mt Friday on expectation for pro-growth measures and ended the day at RMB 13,560/mt, falling RMB 90/mt, or 0.66%. Trading volumes were down 4,830 to 8,424 lots whereas positions climbed 20 to 15,468.
 
In spot lead market, quotes were RMB 13,750/mt for Chengyuan, Shuangyan (packed in plastic) and Tongguan brands, with premiums of RMB 200-250/mt to SHFE 1507 lead contract prices. Shuangyan (packed in iron) quoted at RMB 13,700/mt. Honglu brand was offered at premiums of RMB 100-120/mt to SHFE 1506 lead contract prices. Some traders started moving goods considering high premiums. Downstream producers bought in small amounts before the weekend. Supply remained tight in Henan province, with branded lead offered at RMB 13,800/mt. Trades were robust in Jiangxi. 
 
 Zinc
SHFE 1507 zinc contract prices fluctuated between RMB 17,155-17,215/mt Thursday evening, and closed at RMB 17,200/mt, down RMB 55/mt or 0.32%. Trading volumes decreased 31,024 to 62,286 lots, and total positions declined 1,680 to 168,462. SHFE 1507 zinc contract prices opened at RMB 17,190/mt on Friday, then dipped to as low as RMB 17,045/mt, and closed at RMB 17,105/mt, down RMB 150/mt or 0.87%. Trading volumes increased 8,300 to 165,746 lots, and total positions fell 15,584 to 154,558. SHFE 1507 zinc contract prices are expected to stand at the 5-day moving average this evening.
 
#0 zinc prices were between RMB 16,940-17,010/mt, RMB 150-110/mt below SHFE 1507 zinc contract prices. #1 zinc was traded between RMB 16,920-16,930/mt. SHFE 1507 zinc contract prices fell RMB 17,100/mt during 9:00-10:15 am, but rallied to RMB 17,140/mt during 10:30-11:30 am. Traders lacking arbitrage opportunities held back goods, with spot premiums of RMB 150-130/mt against SHFE 1507 zinc contract prices. Cargo holders sold actively on narrowing spot discounts, leaving supply ample. Some traders purchased goods with spot discounts of RMB 60/mt against SHFE spot-month zinc contract prices, and downstream buyers replenished stocks at the week’s end, causing overall transactions to improve. Spot discounts narrowed to RMB 130-110/mt. 
 
Tin
In Shanghai spot tin market, prices followed SHFE tin down last Friday. Most suppliers cut offers to RMB 120,000-122,000/mt in the morning, but raised offers slightly after SHFE tin rebounded. Downstream consumption was sluggish. Nanshan brand tin traded at RMB 119,800-120,000/mt, RMB 120,500-122,000/mt for Yunxi brand tin, and RMB 121,000/mt for Yunheng and Yunshan brand tin.
 
 Nickel   
SMM #1 nickel prices were between RMB 103,700-109,300/mt. Nickel futures prices rose in the morning. Premiums of Jinchuan nickel remained at RMB 5,000/mt against prices for the most actively traded contracts on the Wuxi electronic trading, or even as high as RMB 5,200-5,500/mt. Downstream buyers were inclined to purchase Russian nickel, leaving trading muted and traded prices between RMB 103,500-109,200/mt. Russian nickel prices edged up as nickel futures prices climbed in the afternoon. Trading was mainly for Russian nickel, with traded prices between RMB 104,400-109,200/mt. Jinchuan raised ex-works prices by RMB 2,000/mt to RMB 110,000/mt.