SHANGHAI, Jul 8 (SMM) – Shanghai nonferrous metals closed mixed today. Premier Li Keqiang stressed that no matter how the international situation changes, China is determined to promote openness, continue to advance reform and development by opening up, stabilise foreign trade and foreign investment, and better participate in international competition and cooperation.
Shanghai copper rose 1.25%, aluminium added 0.27%, lead fell 1.36%, zinc gained 1.65%, tin lost 2.12%, and nickel dropped 1.75%.
Copper: The most-traded SHFE 2208 copper closed up 1.25% or 730 yuan/mt at 58,960 yuan/mt, with open interest down 6,371 lots to 146,409 lots.
Premier Li Keqiang stressed that no matter how the international situation changes, China is determined to promote openness, continue to advance reform and development by opening up, stabilise foreign trade and foreign investment, and better participate in international competition and cooperation.
The spot market was sluggish as a whole, and the premiums dropped slightly, and even sellers of good-quality copper found it increasingly hard to hold firm to the prices. In morning trade, standard quality copper was in premiums of 80 yuan/mt first, and then 70 yuan/mt. In the afternoon, some buyers demanded lower prices, hence some copper was traded with premiums of 60 yuan/mt, but the premiums rallied to 70-80 yuan/mt amid supply tightness.
Aluminium: The most-traded SHFE 2208 aluminium closed up 0.27% or 50 yuan/mt to 18,360 yuan/mt, with open interest down 5,828 lots to 172,073 lots.
Aluminium supply faced pressure from production resumption and ramp-up, and the operating capacity is estimate at 41 million mt. On the demand side, spot transactions picked up slightly when the prices fell, but the downstream orders were less satisfying, and the demand remained poor as a whole.
Lead: The most-traded SHFE 2208 lead closed down 1.36% or 205 yuan/mt at 14,865 yuan/mt, with open interest up 2,045 lots to 51,345 lots.
The spot market was again muted today, and the buyers refrained from purchasing amid fears of further price drops. SHFE lead is likely to remain rangebound in the near term.
Zinc: The most-traded SHFE 2208 zinc closed up 1.65% or 380 yuan/mt at 23,470 yuan/mt, with open interest down 2,509 lots to 110,525 lots.
Supply tightness lingered, and the demand also remained poor. In the spot market, SMM zinc ingot social inventory across seven markets in China totalled 158,900 mt, which dropped palpably in the week after SHFE zinc prices fell. Zinc prices still gained support from the fundamentals, hence have rebounded to the break-even point of smelters.
Tin: The most-traded SHFE 2208 tin closed down 2.12% or 3,940 yuan/mt at 182,250 yuan/mt, with open interest up 3,057 lots to 52,506 lots.
In the spot market, the quotes offered by smelters were largely unchanged from yesterday in morning trade. On the other hand, more traders quoted in the morning, but the transactions turned muted, hence the premiums fell slightly. The downstream purchased on rigid demand, and market inquiries were also less active as some buyers have already completed their restocking.
Nickel: The most-traded SHFE 2208 nickel closed down 1.75% or 2,860 yuan/mt at 160,800 yuan/mt, with open interest down 4,745 lots to 78,303 lots.
The fundamentals of pure nickel were still weak. On the supply side, the production schedules of pure nickel were stable, and the supply is likely to rise, coupled with import profits of pure nickel. On the demand side, the alloy sector posted less demand than in previous years as the orders have been affected by the macro environment.
[Disclaimer: The above representation and data is based on market information SMM believes to be reliable at the time of acquiring as well as the comprehensive assessment by SMM research team, and any and all information provided in this article is for reference only. This article does not constitute a direct recommendation for investment or any decisions in any form and clients shall act on their own discreet and any decisions made by clients are not within the responsibility of SMM.]
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