SMM Base Metals Market Daily Review (2015-5-14)

SHANGHAI, May 15 (SMM) – 

 

Copper 

SHFE 1507 copper contract prices opened slightly lower at RMB 46,180/mt Wednesday night and fluctuated down to RMB 45,860/mt.

 

The most active SHFE copper contract hovered near RMB 45,900/mt Thursday and tested a low of RMB 45,770/mt and closed the daytime trading, down RMB 10/mt. SHFE 1507 copper contract positions decreased 6,202, and trading volumes grew 13,036 lots.

 

Spot copper was still offered at premiums of 10-90/mt to SHFE 1505 copper contract in Shanghai Thursday. Standard-quality copper traded at RMB 46,000-46,060/mt, and high-quality copper sold for RMB 46,040-46,100/mt.

 

Copper supply in spot market remained ample, preventing cargo holders from raising premiums. Trading activities declined further. 

 

Aluminum      

On Thursday, SHFE 1507 aluminum contract fell below the 20-day moving average to RMB 13,270/mt due to selloffs at highs. But prices then rallied before ending at RMB 13,330/mt. Trading volumes totaled 30,664 lots, and positions were down 1,490 to 131,988.  

 

Spot aluminum largely traded between RMB 13,060-13,070/mt in Shanghai on Thursday, discounts of RMB 120-130/mt over SHFE 1505 aluminum contract, versus RMB 13,040-13,050/mt in Wuxi, and RMB 13,060-13,070/mt in Hangzhou. Holders of hedged goods became more willing to sell, but traders showed little buying interest. Processors continued buying only as needed. In the afternoon, trading was muted.

 

  Lead

SHFE 1507 lead dipped to RMB 13,405/mt after opening at RMB 13,580/mt Wednesday night. The metal ended at RMB 13,455/mt, falling RMB 35/mt. The contract fell back to RMB 13,410/mt after starting Thursday’s trading session and then found support at RMB 13,400/mt to touch RMB 13,570/mt. The July delivery lead contract finished at RMB 13,550/mt, climbing RMB 60/mt or 0.44%. Trading volumes dropped 1,086 to 5,860 lots and positions fell 266 to 15,068.

 

In China’s spot market, Nanfang brand traded at RMB 13,810-13,900/mt and Tongguan brand was offered a RMB 300-400/mt premium over SHFE 1507 lead at RMB 13,800/mt. Honglu goods were RMB 50/mt higher than SHFE 1506 lead contract price. Quote was RMB 13,650/mt for Shuangyan (packed in iron) brand. Those lead smelters showed little selling interest and traders also held back goods for limited stocks. Trades were depressed by high spot prices.

 

  Zinc

SHFE 1507 zinc contract prices opened at RMB 17,150/mt Wednesday evening, then dropped below RMB 17,000/mt, and closed at RMB 16,935/mt, down RMB 105/mt or 0.62%. Trading volumes increased 47,506 to 107,528 lots, and total positions fell 10,638 to 133,764. SHFE 1507 zinc contract prices opened at RMB 16,930/mt on Thursday, then dipped to RMB 16,890/mt in the morning, and reached RMB 17,015/mt in the afternoon, and closed at RMB 17,000/mt, down RMB 40/mt or 0.23%. Trading volumes increased 26,312 to 173,986 lots, and total positions fell 12,330 to 132,072. SHFE 1507 zinc contract prices are expected to meet resistance at RMB 17,000/mt this evening.

 

#0 zinc prices were between RMB 16,800-16,840/mt, RMB 150-110/mt below SHFE 1507 zinc contract prices. #1 zinc was traded between RMB 16,750-16,780/mt. SHFE 1507 zinc contract prices fell RMB 100/mt, with spot discounts largely unchanged. Traders sold actively on dropping SHFE zinc prices, and smelters moved goods normally, leaving supply sufficient. Downstream buying interest, however, was weak. Shuangyan and Huize #0 zinc prices were RMB 16,830-16,840/mt, RMB 120-110/mt below SHFE 1507 zinc contract prices. Yuguang #0 zinc prices were RMB 16,810-16,820/mt, RMB 120-130/mt below SHFE 1507 zinc contract prices. Qilin, Jiulong and Qinxin #0 zinc prices were RMB 16,800-16,810/mt, with spot discounts of RMB 150-130/mt against SHFE 1507 zinc contract prices. Baohui and SMC #0 zinc prices were RMB 16,770-16,780/mt, with spot discounts of RMB 170-150/mt against SHFE 1507 zinc contract prices. Indian #0 zinc prices were RMB 16,750-16,770/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 steady and buying interest low.

 

Tin

On Thursday, SHFE 1507 tin contract fell to RMB 117,800/mt, but then rallied to RMB 119,500/mt as bears exited, and finally ended down RMB 1,200/mt at RMB 119,570/mt. Trading volumes totaled 31,286 lots, and positions were up 66 to 7,222.

 

 Tin prices in Shanghai spot market tracked SHFE tin down on Thursday. Some sold as low as RMB 118,000/mt. Downstream buyers showed little interest out of bearishness.    

 

Nickel   

SMM #1 nickel prices were between RMB 102,100-106,100/mt. Nickel prices fell in the afternoon, allowing traders to sell proactively. Downstream buyers purchased as needed, with traded prices between RMB 102,000-105,900/mt. Nickel prices edged lower in the afternoon as supply grew. Traders sold Russian and Jinchuan nickel actively, with premiums of Jinchuan nickel down to RMB 3,000/mt against prices for the most actively traded contracts on the Wuxi electronic trading. Downstream buyers purchased Russian nickel, causing transactions to improve and with traded prices between RMB 101,900-105,500/mt.