SHANGHAI, Jul. 24 (SMM) –
SHFE 1509 copper started at RMB 39,150/mt Wednesday night and ended down RMB 600/mt or 1.51% at RMB 39,050/mt with the session high at RMB 39,280/mt and the session low at RMB 38,940/mt.
On Thursday, the red metal touched a low of RMB 38,710/mt and then advanced to RMB 39,490/mt. In the afternoon, the contract moved narrowly around RMB 39,250/mt. SHFE 1509 copper ended at RMB 39,180/mt, down RMB 470/mt or 1.19%. Trading volumes of SHFE 1509 copper rose 380,740 lots with positions up 3,674.
SHFE 1510 copper shifted to the most active contract. SHFE 1510 copper touched a high of RMB 39,260/mt and a low of RMB 38,490/mt, to close at RMB 38,930/mt, falling RMB 420/mt or 1.07%. Trading volumes of SHFE 1510 copper were up 35,092 lots and positions jumped 7,154.
Spot copper traded RMB 270-330/mt higher than SHFE 1508 copper in Shanghai, versus RMB 39,440-39,880/mt for standard-quality copper and RMB 39,480-39,940/mt for high-quality copper.
SHFE copper slipped near RMB 1,000/mt and large number of speculators hunted cheap copper, driving trades up at lows. In the afternoon, SHFE copper rallied over RMB 500/mt. Trades buying copper in the morning moved goods out for profit-taking and spot supply increased. But spot premiums only fell slightly and trades were thus limited. Traders were then slow to enter market while downstream buyers had troubles in sourcing cheap copper and purchased as needed. Deals were hence mainly made between speculators.
SHFE 1510 aluminum contract fell to RMB 12,270/mt early in the day, but then rallied to RMB 12,370/mt before ending Thursday at RMB 12,355/mt. Trading volumes totaled 34,006 lots, and positions were up 7,558 lots to 141,560 lots.
Aluminum prices were mainly between RMB 12,110-12,120/mt in Shanghai on Thursday, discounts of RMB 120-130/mt over August aluminum on the SHFE, versus RMB 12,120-12,130/mt in Wuxi and RMB 12,130-12,140/mt in Hangzhou. Continuous price decline discouraged sellers from selling. Processors bought only as needed, while traders actively hunted for cheap goods. Trading picked up a little. In the afternoon, some raised offers to RMB 12,170/mt after SHFE aluminum rebounded, but few deals were reported.
SHFE 1510 lead opened at RMB 12,680/mt and dived to RMB 12,605/mt following slipping LME lead, to end at RMB 12,680/mt, reducing RMB 100/mt.
During Thursday trading session, SHFE lead lurched up and finally finished at RMB 12,815/mt, up RMB 35/mt. Trading volumes totaled 2,126 lots with positions up 560 to 15,378.
In Shanghai market, Chengyuan and Humon brands were offered at premiums of RMB 420/mt over SHFE 1510 lead with the traded prices at RMB 13,190-13,200/mt. Older Chengyuan brand goods quoted RMB 50/mt higher than SHFE 1508 lead at RMB 13,130/mt, versus RMB 13,080/mt for Shuangyan brand (packed in iron).
Guangxi Chengyuan Mining & Smelting and Shandong Humon Smelting shipped goods out July 23 but spot supply remained tight in market. Traders were unwilling to give their offers. Downstream buyers purchased on need, leaving trades quiet.
SHFE 1509 zinc contract prices hovered between RMB 15,130-15,200/mt Wednesday evening, and closed at RMB 15,165/mt, down RMB 225/mt. SHFE 1509 zinc contract prices dropped to RMB 15080/mt after opening, but rose on falling US dollar index and short covering to RMB 15,270/mt, and closed at RMB 15,250/mt, down RMB 140/mt or 0.91%. Trading volumes decreased 3,932 lots to 110,774 lots, and total positions decreased 4,016 to 103,902. SHFE 1509 zinc contract prices are expected to rise to RMB 15,300/mt.
#0 zinc prices were between RMB 15,170-15,260/mt, RMB 20-60/mt above SHFE 1509 zinc contract prices. #1 zinc prices were RMB 15,100-15,130/mt during 9:00-10:15 am, down RMB 300/mt. Cargo holders held spot premiums between RMB 80-100/mt. But with the lack of buying interest, SHFE 1509 zinc contract prices fell to RMB 15,200/mt, with spot premiums down to RMB 20-60/mt. Smelters were reluctant to sell on plunging zinc price. But traders purchased zinc futures whilst selling spot zinc, leaving supply ample. Purchasers bought modestly on high spot premiums, and downstream buying interest was weak, with overall transactions quiet. SHFE 1509 zinc contract prices edged up to RMB 15,250/mt in the afternoon, with spot premiums between RMB 20-60/mt.
SHFE 1509 tin contract followed LME tin down to RMB 108,100/mt early Thursday, but tracked other base metals up in the afternoon before ending at RMB 108,940/mt.
In Shanghai spot tin market, trading was thin. Some downstream producers bought as needed, while others held to the sidelines. Mainstream traded prices were RMB 110,000-111,000/mt on July 23. Goods from Yunnan Tin Group traded at RMB 111,000-111,500/mt.
SMM #1 nickel prices were between RMB 83,400-84,800/mt. Premiums of Jinchuan nickel against the most actively traded contracts on the Wuxi electronic trading were RMB 600/mt in the morning. Discounts of Russian nickel against the most actively traded contracts on the Wuxi electronic trading contracted to RMB 100/mt. Downstream buyers took a wait-and-see posture on falling nickel prices, with traded prices between RMB 84,100-84,800/mt. Nickel prices stabilized in the afternoon, with discounts of Russian nickel against the most actively traded contracts on the Wuxi electronic trading returning to RMB 400/mt. Jinchuan Group sold proactively, with the price spread between Jinchuan nickel and Russian nickel narrowing. Downstream buyers purchased modestly, with traded prices between RMB 84,080-84,800/mt. Jinchuan lowered nickel price by RMB 1,800/mt to RMB 85,000/mt.