SMM Daily Review (July 29)

SHANGHAI, July 30 (SMM) --

    Copper:

    SHFE copper prices moved downward straightly after opened low, and even fell by 3.5-4% in the afternoon. A-share market plunged by 5% in the afternoon, further generating speculators’ concerns. The movement of LME copper prices tonight will determine the fluctuations of SHFE copper prices tomorrow.

    In spot copper market, spot premiums inched up to RMB 50-150/mt today. In the morning, parity copper was mainly traded in the RMB 43,850-43,900/mt range, with premiums moving around RMB 50/mt, while premium copper was mainly traded in the RMB 43,950-44,000/mt range, with premiums hovering around RMB 100/mt. The unwillingness to sell good-quality copper emerged, and no deals were made below RMB 44,000/mt for copper (Guixi Brand) in the morning. However, the plunged SHFE copper prices in the afternoon dragged down spot copper prices to the range of RMB 43,300-43,600/mt. Traders were active to move goods, but nobody had interest in purchases. Market players were still confident in copper prices at RMB 40,000/mt.

    Aluminum:

    SHFE aluminum prices opened low and went even lower at a faster pace in the afternoon, and received support at RMB 14,000/mt, with a decline of more than 3%. In spot aluminum market, traded prices were below RMB 14,600/mt in the morning, and fell to RMB 14,100/mt in the afternoon, and no buyers were interested in aluminum with prices at RMB 14,300/mt. CHALCO and other brand firms did not release offers, signaling they were still confident in market recovery.

    Lead:

    In Shanghai lead market, SMM lead prices remained unchanged in an attempt to stabilize the market sentiment, but lead prices still fell to RMB 13,400-13,450/mt in Shanghai market, due to negative impact from falling prices of other base metals. Market players stood on the sidelines to wait for market corrections.

    Zinc:

    SHFE zinc three-month contract prices fell by over 4%, and SHFE zinc spot-month contract prices also fell by 3.7%. All contracts prices fell to RMB 13,600-13,800/mt. In spot zinc market, SMM zinc prices were in the RMB 13,950-14,050/mt range. Deals were mainly made in the RMB 13,700-13,800/mt range in the morning, with discounts of more than RMB 200/mt, and no deals were made in the afternoon due to weak demand. However, imported zinc became brisk after remained quiet for one week, but without solid support from market demand.

    Tin:

    Overnight LME tin slumped, but today Yunnan Tin raised their offers. SMM tin prices remained unchanged, ending 10-day price hikes. Market players adopted wait-and-see attitude towards market changes, leading to lackluster trading activity.

    Nickel:

    In Shanghai nickel market, nickel prices edged down slower, and SMM nickel prices were unchanged. However, the falling LME nickel prices depressed market sentiment, especially that Jinchuan nickel prices were firm at RMB 130,000/mt, creating more difficulties to move cargos. Imported nickel prices fluctuated in the RMB 127,000-127,500/mt range.

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