SMM Base Metals Market Daily Review (2015-5-13)

Published: May 14, 2015 10:56 (GMT+8)

Save

The most active SHFE copper contract stayed in a narrow range in most of Wednesday’s daytime trading.

SHANGHAI, May 14 (SMM) –

Copper

The most active SHFE copper contract stayed in a narrow range in most of Wednesday’s daytime trading, but rallied to RMB 46,390/mt at the tail of the session and finished up RMB 520/mt at RMB 46,260/mt. Trading volumes grew 52,876 lots, and positions increased 5,822. The July-delivery copper has found stronger support after climbing above the 5-day moving average.

Spot copper was offered at premiums of 10-90/mt to SHFE 1505 copper contract in Shanghai early Wednesday. Standard-quality copper traded at RMB 46,100-46,140/mt, and high-quality copper sold for RMB 46,140-46,200/mt. Rapid increase in SHFE copper caused spot premiums to narrow in the afternoon. Standard-quality copper was once offered at discount of RMB 20/mt.

Cargo holders sold actively at highs and held prices up out of bullish mood. Quotations for high-quality copper varied largely. Some traders sourced goods at lows, but purchases made by downstream producers declined noticeably after replenishing stocks Tuesday.

Aluminum

China’s April industrial output, fixed asset investment and retail sales data all missed forecasts, raising hopes for more stimulus. In this context, SHFE 1507 aluminum contract moved sideways for most of the day. The contract, though, rose to RMB 13,395/mt towards the close of the afternoon session before ending Wednesday at RMB 13,380/mt. Trading volumes totaled 26,398 lots, and positions were up 1,908 to 133,478. Prices might challenge resistance at RMB 13,400/mt.

Spot aluminum largely traded between RMB 13,070-13,080/mt in Shanghai on Wednesday, discounts of RMB 140-150/mt over SHFE 1505 aluminum contract, versus RMB 13,050-13,080/mt in Wuxi, and RMB 13,090-13,100/mt in Hangzhou. Some suppliers decided not to sell until after the delivery date of SHFE 1505 aluminum contract. Traders were active in the market, while processors were cautious about buying. In the afternoon, suppliers held back goods out of bullishness after SHFE aluminum drifted higher.

Lead

SHFE 1507 lead opened at RMB 13,445/mt Tuesday night and then moved higher to finish at RMB 13,510/mt. The contract moved around RMB 13,500/mt Wednesday morning. The metal moved above the 20-day moving average in the afternoon as China’s April manufacturing output grew 5.9% YoY, up 0.3 percentage point MoM and as April new home sales area climbed 7% versus April 2014, the first rise since early 2014. The July-delivery lead hit day’s high of RMB 13,675/mt and was last up RMB 345/mt or 1.83% at RMB 13,620/mt. Trading volumes dropped 104 to 6,946 lots and positions fell 294 to 15,334.

In spot market, quotes were RMB 13,800-13,830/mt for Tongguan and Nanfang brands, with RMB 300-330/mt premiums over SHFE 1507 lead contract price. Honglu brand traded at RMB 13,500/mt. A small number of Tongguan and Nanfang goods flowed into market. Meanwhile, cargo holders refrained from selling, causing a tight supply in spot market. Downstream producers purchase on need and high spot premium enticed them to mainly buy under term contract.

Zinc

SHFE 1507 zinc contract prices opened at RMB 17,020/mt Tuesday evening, but lacked ability to rise, and closed at RMB 17,030/mt, up RMB 125/mt or 0.74%. Trading volumes decreased 24,530 to 90,026 lots, and total positions grew 3,616 to 141,126. SHFE 1507 zinc contract prices opened at RMB 17,030/mt on Wednesday, and broke through RMB 17,100/mt in the afternoon, and closed at RMB 17,140/mt, up RMB 235/mt or 1.39%. Trading volumes decreased 15,862 to 228,200 lots, and total positions grew 6,892 to 144,402. SHFE 1507 zinc contract prices are expected to strengthen this evening.

#0 zinc prices were between RMB 16,900-16,940/mt, RMB 140-110/mt below SHFE 1507 zinc contract prices. #1 zinc was traded between RMB 16,860-16,870/mt. SHFE 1507 zinc contract prices rose RMB 200/mt to RMB 17,050/mt, with spot discounts of #0 zinc expanding from RMB 120-100/mt to RMB 140-120/mt against SHFE 1507 zinc contract prices. Downstream buying interest was weak, leading to slow sales at smelters, with overall transactions quiet. Shuangyan and Huize #0 zinc prices were RMB 16,930-16,940/mt, RMB 120-110/mt below SHFE 1507 zinc contract prices. Yuguang #0 zinc prices were RMB 16,910-16,920/mt, RMB 120/mt below SHFE 1507 zinc contract prices. Qilin, Jiulong and Qinxin #0 zinc prices were RMB 16,900-16,920/mt, with spot discounts of RMB 140-120/mt against SHFE 1507 zinc contract prices. Baohui, Bailing and SMC #0 zinc prices were RMB 16,880-16,890/mt, with spot discounts of RMB 170-150/mt against SHFE 1507 zinc contract prices. Indian #0 zinc prices were RMB 16,870-16,880/mt, with spot discounts of RMB 180-170/mt against SHFE 1507 zinc contract prices. SHFE 1507 zinc contract prices edged up in the afternoon, with spot discounts widening RMB 20/mt to RMB 140-150/mt for Shuangyan zinc.

Tin

SHFE 1507 tin contract opened at RMB 120,800/mt on Wednesday. The contract fell back after rising to RMB 121,100/mt, but then rallied to close RMB 730/mt higher at RMB 120,700/mt. Trading volumes totaled 10,418 lots, and positions were down 346 to 7,156.

Tin prices in Shanghai spot market tracked SHFE tin down to RMB 119,000-120,500/mt on Wednesday. Goods from Yunnan Tin Group traded between RMB 120,000-120,500/mt. Downstream buyers showed little interest.

Nickel

SMM #1 nickel prices were between RMB 104,000-109,100/mt. Premiums of Jinchuan nickel remained at RMB 4,200/mt against prices for the most actively traded contracts on the Wuxi electronic trading. Jinchuan sold deliverable spot goods at a price RMB 1,500/mt above market prices. Downstream buying interest was weak, with traded prices between RMB 104,300-109,100/mt. Traders sold actively as nickel prices dropped in the afternoon, with spot premiums contracting. Premiums of Jinchuan nickel decreased to RMB 3,100/mt, but failed to boost downstream buying interest. A shipload of Russian nickel is expected to arrive next week. Traded prices were between RMB 104,300-108,000/mt. Jinchuan Group lowered prices by RMB 1,000/mt to RMB 109,500/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.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

14 hours ago

KGHM and South32 launch US$725m Sierra Gorda expansion, lifting copper capacity 26%

KGHM and South32 have broken ground on a fourth grinding line at the Sierra Gorda copper-molybdenum mine in Chile's Atacama region. The US$725 million expansion runs for three years from January 2027, with completion by late 2029 and full output in H2 2030. Ore processing capacity rises 26%, from 131,000 tonnes per day to 165,000 tpd. Annual copper output is projected to climb from 165,000 tonnes in 2025 to 195,000 tonnes, with 6,000 tonnes of molybdenum, 58,000 ounces of gold and 1.7 million ounces of silver as by-products. The project creates over 900 direct jobs and is funded from operating cash flow and debt. Unit operating costs are expected to fall about 10%.

14 hours ago

15 hours ago

Emerita Extends Final Review of Iberian Belt West PFS, Release Expected in Coming Weeks

Emerita Resources has provided an update on the Preliminary Feasibility Study (PFS) for its Iberian Belt West polymetallic project in Spain, saying the study is well advanced but remains under final technical review. The company said the review process has been expanded to include additional technical and quality-assurance oversight before publication. As a result, Emerita now expects the PFS to be released in the coming weeks rather than within the previously indicated timeframe. Iberian Belt West hosts copper, zinc, lead, gold and silver mineralization and is one of Emerita’s principal development-stage assets in Spain. The PFS is expected to provide updated detail on the proposed mine plan, processing configuration, capital requirements, operating costs and project economics. Emerita said the additional review work is intended to ensure consistency and completeness across the technical disciplines contributing to the study before it is finalized. The company did not announce a revised specific publication date, and no new production, capital or economic figures were disclosed in the latest update. The extended review delays the next major technical milestone for Iberian Belt West, but the company continues to indicate that the PFS is nearing completion. For the copper market, the significance of the study will depend on the production profile and project economics ultimately disclosed, particularly the contribution of copper relative to the project’s other payable metals. Attention will therefore remain on the timing of the PFS release and whether the final study materially changes the project’s development outlook.

15 hours ago

Cascadia Intersects 75.55 m at 1.19% Cu at Carmacks Copper-Gold Project

Cascadia Minerals has reported additional drill results from its 2026 exploration programme at the Carmacks copper-gold project in Yukon, Canada, with new step-out drilling extending mineralization at Zone 2000S beyond the boundaries of the existing Mineral Resource. Drill hole CD-26-058 returned 75.55 metres grading 1.19% copper, 0.97 g/t gold, 10.4 g/t silver and 335 ppm molybdenum, equivalent to 2.18% copper-equivalent. The interval included 48.66 metres grading 1.61% copper, 1.39 g/t gold, 15.1 g/t silver and 475 ppm molybdenum, equivalent to 3.03% CuEq. Within the same hole, a higher-grade interval of 14.50 metres returned 2.30% copper, 2.68 g/t gold, 29.5 g/t silver and 1,015 ppm molybdenum, equivalent to 5.08% CuEq. A second hole, CD-26-059, intersected 93.99 metres grading 0.96% copper, 0.70 g/t gold, 4.6 g/t silver and 919 ppm molybdenum, equivalent to 1.94% CuEq. This included 63.97 metres at 1.26% copper, 0.96 g/t gold, 6.3 g/t silver and 1,049 ppm molybdenum, equivalent to 2.52% CuEq. Cascadia said the latest results continue to expand mineralization at Zone 2000S beyond the limits of the current Mineral Resource and highlight the higher-grade nature of the extension. The reported drill intervals represent drilled thicknesses, with true widths estimated at approximately 60–70%. The latest step-out results indicate that copper-gold mineralization at Zone 2000S extends beyond the boundaries of the current Carmacks Mineral Resource. The broad intervals and higher-grade internal zones could support future resource expansion if additional drilling confirms continuity. However, the new intersections have not yet been incorporated into an updated Mineral Resource Estimate, meaning their ultimate impact on project scale and mine planning remains to be determined.

15 hours ago