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SMM Base Metals Market Daily Review (2015-5-29)
Jun 1,2015 10:24CST
price review forecast
Source:SMM
The August-delivery SHFE copper drifted higher at RMB 44,250/mt, and tested a high of RMB 44,320/mt last Friday.
SHANGHAI, Jun. 1 (SMM) – 
 
Copper 
The August-delivery SHFE copper drifted higher at RMB 44,250/mt, and tested a high of RMB 44,320/mt last Friday. The prices then moved in a narrow range and closed at RMB 44,300/mt, up RMB 170/mt. SHFE 1508 copper positions grew 2,236, with trading volumes down 120,000 lots. Total SHFE copper positions fell by 20,482. SHFE reported a 6,582 mt decline in copper stocks to 156,053 mt last week.
 
Spot copper was quoted at premiums of RMB 20-60/mt to SHFE 1506 copper contract in Shanghai last Friday, with trading enlivened. Traded prices were RMB 44,420-44,460/mt for standard-quality copper and RMB 44,440-44,480/mt for high-quality copper.
 
Trading was quiet in spot copper market on the last trading day of May. A few traders bought at lows, but supply of low-priced goods was limited. Price difference between brands narrowed. Downstream buyers only watched from the sidelines. 
 
Aluminum      
SHFE 1508 aluminum contract hovered narrowly above RMB 13,200/mt last Friday and ended the day at an intraday high of RMB 13,225/mt. Trading volumes totaled 24,516 lots, and positions were up 3,570 to 127,372.      
 
Spot aluminum largely traded between RMB 12,970-12,980/mt in Shanghai last Friday, discounts of RMB 110-120/mt over SHFE 1506 aluminum contract, versus RMB 12,950-12,970/mt in Wuxi, and RMB 13,000-13,010/mt in Hangzhou. Market supply fell because more traders just finished delivery under term contracts. Demand picked up before the weekend, allowing prices to rebound. In the afternoon, market turned quiet.  
 
Lead
After SHFE 1507 lead opening Friday trading session, the contract soared to RMB 13,400/mt due to rebounding China’s A-share and shorts’ gathering strength and finally ended up RMB 60/mt at RMB 13,415/mt.
 
Lead futures prices rose but spot lead prices remained flat in spot market. Baiyin (packed in plastic), Hanjiang and Shuangyan brands traded at RMB 13,850/mt, a RMB 480/mt premium over SHFE 1507 lead. Shuangyan (packed in iron) and Honglu brands settled at RMB 13,440-13,480/mt.
 
Lead smelters planed to fill orders next week with goods arriving then. Few downstream producers purchased due to tight liquidity at the end of the month. Thus, trades failed to pick up today.
 
Spot supply in Henan increased while downstream buyers cut purchase at RMB 13,750-13,850/mt. Besides, deals were made at RMB 13,380-13,500/mt in Guangdong.
 
Zinc
SHFE 1508 zinc contract prices opened at RMB 16,880/mt Thursday evening, then dropped to as low as RMB 16,755/mt, and closed at RMB 16,825/mt, up RMB 95/mt or 0.57%. SHFE 1508 zinc contract prices opened at RMB 16,830/mt on Friday, then dropped to RMB 16,720/mt, but rose with LME zinc prices to RMB 16,870/mt in the afternoon, and closed at RMB 16,850/mt, up RMB 120/mt or 0.72%. Trading volumes decreased 17,264 to 172,352 lots, and total positions grew 2,898 to 138,648. SHFE 1508 zinc contract prices are expected to remain steady this evening.
 
#0 zinc prices were between RMB 16,590-16,630/mt, RMB 120-80/mt below SHFE 1507 zinc contract prices and RMB 150-110/mt below SHFE 1508 zinc contract prices. #1 zinc prices were RMB 16,550-16,570/mt. SHFE 1507 zinc contract prices dropped to RMB 16,685/mt during 9:00-10:15 am, with spot discounts largely unchanged. But during 10:30-11:30 am, SHFE 1507 zinc contract prices rebounded to RMB 16,730/mt after, with spot discounts expanding to RMB 120-100/mt at one point. Some optimistic smelters sold modestly, but downstream buying interest was also weak on month-end cash tightness. Cargo holders that sold proactively reported slow sales. Shuangyan #0 zinc prices were RMB 16,610-16,630/mt, RMB 100-80/mt below SHFE 1507 zinc contract prices. Yuguang #0 zinc prices were RMB 16,600-16,620/mt, RMB 110-90/mt below SHFE 1507 zinc contract prices. Feilong, Qilin and Qinxin #0 zinc prices were RMB 16,590-16,610/mt, with spot discounts of RMB 120-100/mt against SHFE 1507 zinc contract prices. Baohui and Tongguan #0 zinc prices were RMB 16,590-16,600/mt, with spot discounts of RMB 130-120/mt against SHFE 1507 zinc contract prices. KZ and YP #0 zinc prices were RMB 16,580-16,590/mt, with spot discounts of RMB 130-120/mt against SHFE 1507 zinc contract prices. Indian and Namibia’s #0 zinc prices were RMB 16,540-16,550/mt, with spot discounts of RMB 170-160/mt against SHFE 1507 zinc contract prices. SHFE 1508 zinc contract prices rose RMB 50/mt in the afternoon, but spot discounts of #0 zinc prices did not widen as traders held on the sidelines. 
 
Tin
In Shanghai spot tin market, trading activity was sluggish last Friday. Most deals closed between RMB 114,500-116,000/mt. Small amount of Yunxi brand tin was offered at RMB 116,500/mt. 
   
 Nickel   
SMM #1 nickel prices were between RMB 94,100-99,700/mt. Spot nickel prices fell with futures prices last Friday morning. Premiums of Jinchuan nickel remained around RMB 4,700/mt. Downstream buyers took a wait-and-see attitude, with trading muted and traded prices between RMB 94,100-99,100/mt. Traders increased supply as nickel prices stabilized in the afternoon. Some bargain hunters entered the market as spot discounts of Russian nickel expanded, causing trading to improve, with traded prices between RMB 95,700-100,500/mt.
 
 
 
 
SHFE copper prices
SHFE aluminum prices
SHFE lead prices
SHFE zinc prices
Shanghai tin prices
Shanghai nickel prices

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