SMM Daily Review (Aug. 12)

SHANGHAI, Aug. 13 (SMM) --

    Copper:

    SHFE copper prices opened low negatively affected by falling LME copper prices. SHFE copper prices closed below RMB 48,000/mt, with a daily decline of 1-1.5%. In spot copper market, imported copper supply decreased, as SHFE/LME copper price ratio dropped, leading to import losses and dampening importers’ interest in selling goods. Spot discounts for domestic parity copper were only RMB 50/mt, and slight premiums for premium copper appeared. Spot premiums for ENM and Jiangtong brands copper were RMB 20-50/mt, and the unwillingness of cargo movement existed in the market given limited supply. If SHFE copper prices continued to fluctuate tomorrow, spot premiums will likely appear in the market again.

    Aluminum:

    SHFE aluminum prices fell and fluctuated below 5-day average line, and finally closed below RMB 15,000/mt negatively affected by falling LME aluminum prices. In spot aluminum market, spot premiums were RMB 20-50/mt, with amply market supply. The supply of imported aluminum from Russia, Brazil and Australia increased, with slight discounts of RMB 20/mt. Offers were RMB 15,050/mt for domestic non-registered aluminum, and RMB 15,080/mt for brand aluminum. SHFE aluminum prices fell rapidly in the afternoon, and domestic aluminum prices were firm at RMB 15,000/mt despite of weak market conditions. Aluminum prices will unlikely remain at RMB 15,000/mt.

    Lead:

    In Shanghai lead market, SMM lowered lead prices by RMB 150/mt to RMB 13,650-13,850/mt, but spot discounts still existed in spot market. Suppliers faced difficulties to kept prices firm due to sufficient cargos, and downstream consumers demanded much lower prices, resulting in falling market traded prices. Struggles between suppliers and buyers intensified at RMB 13,500/mt.

    Zinc:

    SHFE zinc prices moved below RMB 15,000/mt, and closed down 1.8-1.9% in the afternoon, and spot-month contract prices performed even worse. In spot market, traded prices moved around RMB 14,650/mt, and trading volume increased slightly at lower prices. Consumers remained quiet with regard to purchases in view of wide fluctuations in SHFE zinc prices. however, nearly no deals were made even at RMB 14,500/mt. Suppliers believe zinc prices can receive support at RMB 14,500/mt from costs, but downstream consumers are looking forward to further corrections.

    Tin:

    In Shanghai tin market, tin prices recovered steadily. Divergence appeared in prices for brand tin and inferior brands tin today. Prices for high-end tin have reached RMB 120,000/mt, and it lower prices also increased to RMB 118,000/mt. Offers were RMB 123,000/mt for Yunxi brand tin and other brands tin, only traders with low-priced resources moved goods below RMB 120,000/mt. However, prices for inferior brands tin increased as well.

    Nickel:

    In Shanghai nickel market, SMM reduced nickel prices today to RMB 147,000-148,000/mt for domestic nickel, still RMB 6,000/mt lower than ex-works prices. Imported nickel supply was limited, with prices at RMB 143,000/mt. LME nickel prices fell by USD 350/mt on trading day, generating wait-and-see sentiment in the market. 

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