SHFE Lead to Experience Correction (2017-3-15)

China rare earth ore imports recorded 14,400 mt in January-February 2022, down 13% YoY which was mainly attributed to middle and heavy rare earth.

Three-month LME aluminium climbed toward a record high on Tuesday, as mounting sanctions on Russia sparked concerns about aluminium supplies from Rusal. The worries about shipping disruptions pushed up nickel prices at the same time.

The SHFE and LME nickel prices diverged markedly in the afternoon trading on Tuesday. The SHFE/LME nickel price ratio shrank from 7.28 to 7.07. The import loss widened to $1,000/mt.

According to General Administration of Customs China imported 8.73 million mt of bauxite in December, up 13.32% month-on-month and 16.4% year-on-year.

China imported 4.01 million mt of nickel ore and its concentrate in November, a decrease of 10% from the previous month and a year-on-year increase of 12%, According to General Administration of Customs.

The trades remained subdued, and the Yangshan copper premiums changed little. Many trading companies have closed their accounts and are busy with the year-end settlement, lacking purchasing interest for spot cargoes. Import losses fluctuated between 200-400 yuan/mt during the week against the January contract.

The silicon metals prices skyrocketed in September and started to fall after the National Day holiday in October. The prices of oxygen-free 553# silicon basically lost all the gains in September, and the prices of high-grade silicon was relatively firm.

The power rationing in Yunnan, Henan, and Hunan since July-August and the power rationing in Jiangxi and Guangxi in September are undoubtedly the current hot spots. According to a recent SMM survey, the power rationing in Jiangsu, Guangdong and other regions in China has continued. Since late September, the social inventory of lead ingots has declined due to the combined effects of losses, power rationing and environmental protection.

Lead concentrate TCs were flat last week. The concentrate stocks at some plants were high due to the power curtailment, and the transactions of TCs were limited despite the high quotations.

Lead concentrate TCs fell slightly and the average concentrate inventory level of smelters has not changed significantly.