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SMM Base Metals Market Daily Review (2015-5-26)
May 27,2015 10:51CST
price review forecast
Source:SMM
SHFE 1507 copper contract prices started higher at RMB 44,760/mt for Monday’s night session and rose to RMB 45,060/mt as shorts closed positions.

SHANGHAI, May 27 (SMM)--
Copper:
SHFE 1507 copper contract prices started higher at RMB 44,760/mt for Monday’s night session and rose to RMB 45,060/mt as shorts closed positions. The prices stabilized later and finished the session with a 0.96% gain at RMB 45,060/mt.

The July-delivery SHFE copper stabilized around fell to RMB 44,800/mt early Tuesday and hovered near the RMB 44,950/mt in the afternoon before ending at RMB 44,520/mt, down RMB 110/mt with the session low at RMB 44,480/mt. The SHFE 1508 copper contract shifted to the new most-active contract in the afternoon and closed the daytime trading at RMB 44,400/mt, falling by RMB 140/mt. Positions of SHFE 1507 copper contract shrank 25,804 and trading volumes increased 38,000 lots. SHFE 1508 copper positions grew 29,280, with trading volumes up 89,016.

Spot copper was quoted between a discount of RMB 30/mt and a premiums of RMB 40/mt to SHFE 1506 copper contract in Shanghai Tuesday morning. Standard-quality copper traded at RMB 44,880-44,960/mt, and high-quality copper sold for RMB 44,920-45,020/mt. In the afternoon, copper was offered at discounts of RMB 10-40/mt.

Cargo holders sold actively at the end of the month to raise cash, narrowing spot premiums. Some goods were offered at discounts near midday. Trading was quiet as downstream buyers were cautious towards purchases. A few traders bought on dips.

Aluminum:
SHFE 1508 aluminum contract retreated from the 60-day and 5-day moving averages on selloffs at highs on Tuesday. The contract ended at RMB 13,250/mt. Trading volumes totaled 19,866 lots, and positions were up 5,694 to 109,448.

Spot aluminum largely traded between RMB 13,000-13,020/mt in Shanghai on Tuesday, discounts of RMB 140-160/mt over SHFE 1506 aluminum contract, versus RMB 12,980-13,000/mt in Wuxi, and RMB 13,030-13,050/mt in Hangzhou. SHFE 1506 aluminum contract rebounded, but spot aluminum was resistant to rises, causing spot discounts to widen. Traders in Shanghai went bargain hunting. Trading in Wuxi remained thin. In the afternoon, few deals were reported.

Zinc:
SHFE 1508 zinc contract prices opened at RMB 16,555/mt Monday evening, then rose to RMB 16,660-16,700/mt, and closed at RMB 16,670/mt, up RMB 145/mt or 0.88%. Trading volumes contracted 15,710 to 18,328 lots, and total positions grew 5,106 to 87,868. SHFE 1508 zinc contract prices opened at RMB 16,670/mt on Tuesday, then fluctuated between RMB 16,620-16,680/mt, then roll back gains at night session, and closed flat at RMB 16,525/mt. Trading volumes increased 9,198 to 73,566 lots, and total positions grew 5,656 to 89,888. SHFE 1508 zinc contract prices are expected to fluctuate between RMB 16,400-16,600/mt this evening.

#0 zinc prices were between RMB 16,520-16,560/mt, RMB 90-70/mt below SHFE 1507 zinc contract prices. No #1 zinc was traded. SHFE 1507 zinc contract prices fluctuated between RMB 16,600-16,640/mt, up RMB 100/mt from last Friday. Most smelters were selling normally, but downstream buying interest was weak on rising zinc prices. Traders busy with settling also lacked buying interest, leaving overall transactions quiet. Huize #0 zinc prices were RMB 16,550-16,570/mt, RMB 60-50/mt below SHFE 1507 zinc contract prices. Shuangyan #0 zinc prices were RMB 16,540-16,560/mt, RMB 70/mt below SHFE 1507 zinc contract prices. Yuguang #0 zinc prices were RMB 16,530-16,550/mt, RMB 80/mt below SHFE 1507 zinc contract prices. Qilin and Qinxin #0 zinc prices were RMB 16,520-16,540/mt, with spot discounts of RMB 90/mt against SHFE 1507 zinc contract prices. SMC #0 zinc prices were RMB 16,500-16,520/mt, with spot discounts of RMB 120-110/mt against SHFE 1507 zinc contract prices. Indian #0 zinc prices were RMB 16,480-16,500/mt, with spot discounts of RMB 140/mt against SHFE 1507 zinc contract prices. Brazilian and Peruvian #0 zinc prices were RMB 16,460-16,480/mt, with spot discounts of RMB 160-150/mt against SHFE 1507 zinc contract prices. SHFE 1507 zinc contract prices fell RMB 50/mt in the afternoon, with spot discounts narrowing RMB 20/mt.

Lead:
SHFE 1507 lead finished up RMB 140/mt Monday night. LME lead rose on Tuesday thanks to China’s stimulus measures. As such, SHFE 1507 lead climbed RMB 190/mt to RMB 13,425/mt Tuesday as shorts exited market. In the afternoon business, the contract dropped against falling LME lead to roll back early gains and finally ended up RMB 15/mt at RMB 13,250/mt. Trading volumes totaled 3,876 lots while positions were down 624 to 13,008.

In spot market, Nanfang and Shuangyan (packed in plastic) brands traded RMB 500-550/mt higher than SHFE 1507 lead at RMB 13,900/mt, versus Hanjiang brand at RMB 13,830/mt. Some deals were made at RMB 13,450-13,550/mt for Baiyin and Shuangyan (packed in iron) Brands. Goods at Nanfang lead smelters already arrived to Shanghai but were mainly used to fill previous orders. Most traders’ branded goods also filled orders. Downstream buyers refused to purchase, leaving older goods to trade in the market. Branded goods in Henan quoted RMB 13,800-13,850/mt. Spot discounts against SMM lead in Hunan turned to a par due to tight supply.

Tin:
In Shanghai spot tin market, mainstream traded prices fell to RMB 116,000-118,000/mt on Tuesday morning due to poor demand. Most goods from Yunnan traded higher to RMB 116,500/mt in the afternoon, driven by strong SHFE tin.

Nickel:
SMM #1 nickel prices were between RMB 95,500-100,600/mt. Lower-priced Jinchuan nickel was snapped up quickly, with premiums rising to RMB 4,500/mt. Russian nickel supply was sufficient, with prices between RMB 96,200-100,400/mt. Traders held back goods as nickel prices began to fall on 2:00 pm, with trading mainly for Russian nickel. Demand for Norwegian and Sumitomo nickel grew due to tight Jinchuan nickel supply, with traded prices between RMB 94,900-100,400/mt.
 

 

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