Home / Metal News / [Base Metal] SMM Base Metals Market Daily Review (2015-7-29)

[Base Metal] SMM Base Metals Market Daily Review (2015-7-29)

iconJul 30, 2015 10:51
Source:SMM

SHANGHAI, Jul. 30 (SMM)--

Copper:

SHFE 1510 copper contract started higher at RMB 38,190/mt for night trading Tuesday and soon rose to RMB 38,930/mt and closed at RMB 38,690/mt, up RMB 840/mt. Positions decreased 5,400 and trading volumes were about 180,000 lots.

SHFE copper touched an intra-day high of RMB 39,400/mt during Wednesday trading session but later retreated below RMB 39,000/mt. The red metal finally ended at RMB 38,810/mt, growing RMB 960/mt or 2.54%. Trading volumes jumped 128,000 lots while positions decreased 9,262.

Spot copper premiums slipped to RMB 70-160/mt RMB 150-230/mt in Shanghai market Wednesday. Traded prices were RMB 39,520-39,840/mt for stand-quality copper and RMB 39,550-39,900/mt for high-quality copper.

A large number of copper imports flowed into China market, while speculators were keen to sell, driving supply up. Trades sold at discounts to promote sales. Big price gap existed between standard-quality and high-quality copper. The lower prices prompted some to hunt goods again, which helped spot premiums stabilize. 

Aluminum:

SHFE 1510 aluminum contract drifted lower after rising to RMB 12,430/mt on Wednesday, due to plunging Chinese stock market and caution before the US Fed’s policy decision. The contract ended the day at RMB 12,345/mt. Trading volumes totaled 38,462 lots, and positions were down 8,264 lots to 137,704 lots.

Aluminum prices were mainly between RMB 12,190-12,210/mt in Shanghai on Wednesday, discounts of RMB 100-90/mt over August aluminum on the SHFE, versus RMB 12,180-12,200/mt in Wuxi and RMB 12,210-12,220/mt in Hangzhou. Spot prices rose at first, but then fell back, tracking SHFE aluminum. Buying cooled after SHFE aluminum drifted lower. In the afternoon, market turned quiet. 

Zinc:

SHFE 1509 zinc contract prices opened at RMB 14,900/mt Tuesday evening, then dipped to RMB 14,885/mt but later climbed to RMB 15,000/mt, and closed at RMB 15,100/mt, up RMB 350/mt. SHFE 1509 zinc contract prices touched RMB 15,200/mt after opening on Wednesday, then fell back to RMB 15,100/mt, and inched lower in the afternoon, and closed at RMB 15,100/mt, up RMB 350/mt or 2.37%. Trading volumes grew 35,732 to 115,426 lots, and total positions increased 9,496 to 115,474. SHFE 1509 zinc contract prices are expected to test support from RMB 15,000/mt.

#0 zinc prices were between RMB 15,250-15,280/mt, RMB 110-160/mt above SHFE 1509 zinc contract prices last Friday. #1 zinc prices were RMB 15,180-15,200/mt. Most purchases were made for imported zinc. Japanese and South Korean #0 zinc traded between RMB 15,150-15,180/mt. SHFE 1510 zinc contract prices touched RMB 15,190/mt, then edged down to RMB 15,090/mt. Smelters were still reluctant to sell, and traders held prices firm, leaving spot premiums high. Traders purchased at lows to fulfill term contracts, but downstream buyers refrained from buying, with overall transactions quiet and mainly made among traders. SHFE 1510 zinc contract prices fell slightly in the afternoon, and #0 zinc prices were RMB 15,230-15,280/mt, with spot premiums of RMB 130-160/mt against SHFE 1510 zinc contract prices and some quotes as high as RMB 190-200/mt.

Lead:

SHFE 1510 lead opened at RMB 12,700/mt for nigh session Tuesday and soared to RMB 13,000/mt, to close at RMB 12,955/mt, rising RMB 315/mt.

The October lead ranged between RMB 12,920-13,020/mt for day trading Wednesday. At noon, the Shanghai Composite Index test resistance at 3800 and thus commodity prices increased again. SHFE lead finally ended at a high of RMB 13,085/mt, up by RMB 445/mt. Trading volumes were about 3,056 lots and positions fell 130 to 16,569. SHFE 1508, 1509 and 1510 lead prices were driven up by short covering. But short positions of SHFE 1511 lead grew, signaling that makers were not optimistic about this time's price hike. 

In Shanghai, Traded prices were RMB 13,270-13,280/mt for Humon and Hanjiang brands, RMB 310/mt higher than SHFE 1510 lead. Jinyuteng brand quoted RMB 13,255-13,275/mt, versus RMB 13,170/mt for Shuangyan brand (packed in iron). YT brand was offered at a premium of RMB 50/mt higher than SHFE 1508 lead.

Shandong Humon Smelting Co. and Western Mining shipped goods out. Jinyuteng brand, shifted from Guangdong to Shanghai last week, flowed into market July 29. Thus, spot availability increased in market. After the lead price hikes, cash-hunger downstream producers showed little buying interest, leaving trades light.

Tin:

In Shanghai spot tin market, mainstream traded prices followed SHFE tin up on July 29. Prices of cheap goods rose to RMB 109,800-110,000/mt, while goods from Yunnan largely traded at RMB 110,000-111,000/mt. 

Nickel:

SMM #1 nickel prices were between RMB 84,000-85,000/mt. Premiums of Jinchuan nickel against the most actively traded contracts on the Wuxi electronic trading were RMB 500/mt in the morning. Nickel prices continued to rebound in the morning. Trading among traders was brisk, and downstream buyers purchased as needed, with traded prices between RMB 84,000-84,600/mt. Nickel futures prices fell slightly in the afternoon, with Russian nickel price RMB 300/mt below the most actively traded contracts on the Wuxi electronic trading. Spot premiums/discounts have been relatively stable recently due to low prices, despite ample supply, with traded prices between RMB 83,100-84,300/mt. Jinchuan raised nickel price by RMB 1,000/mt to RMB 84,500/mt.

copper prices
aluminum prices
lead prices
zinc prices
tin prices
nickel prices
Base Metal

For queries, please contact Lemon Zhao at lemonzhao@smm.cn

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

Related news