Shanghai Base Metal Prices Exposed to Declines, SMM Says

Published: Aug 14, 2015 09:29

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Base metal prices on the SHFE market are expected to come under downward risks on Aug. 14, Shanghai Metals Market foresees.

SHANGHAI, Aug. 14 (SMM) – Base metal prices on the SHFE market are expected to come under downward risks on Aug. 14, Shanghai Metals Market foresees.

“A combination of stabilizing exchange rate of yuan, strong dollar, falling oil prices and weak demand will pressure Shanghai’s price, despite of a stable LME market,” SMM says.

Chinese currency’s yuan turned to stabilize against the dollar following Chinese official’s remarks on yuan’s appreciation.

“The current high SHFE/LME price ratio on base metals will also trigger arbitrage trading, and this will also weigh down Shanghai base metals prices,” SMM adds.

Copper: 39,000-39,700 yuan per tonne

Aluminum: 12,080-12,160 yuan per tonne

Lead: 13,250-13,350 yuan per tonne

Zinc: 14,850-15,000 yuan per tonne

Tin: 107,000-109,000 yuan per tonne

Nickel: 81,000-82,500 yuan per tonne

Note: All prices above are forecasts for most actively-traded contracts on each market.

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Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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