SMM Daily Review (Aug. 14)

SHANGHAI, Aug. 17 (SMM) --

    Copper:

    SHFE copper prices opened high in the morning, and climbed by 5% to RMB 50,000/mt. However, SHFE copper prices moved downward due to market risks, down nearly RMB 1,000/mt, especially spot-month contract prices were tested at RMB 50,000/mt. In spot copper market, spot discounts remained at RMB 200-300/mt in the morning, with traded prices moving in the RMB 50,200-50,350/mt range. However, Jiangtong and a series of domestic brands parity copper chose the delivery, leading to limited cargo movement. Spot copper traders intended to raise their offers with plunged SHFE copper prices, and discounts for hydro-copper were RMB 200-250/mt. The daily spread for traded prices reached RMB 300-400/mt, but copper prices are expected to fluctuate around RMB 50,000/mt next week.

    Aluminum:

    SHFE aluminum prices moved downward after opened high, with spot-month contract prices moving around RMB 15,200/mt, and three-month contract falling to RMB 15,300/mt. In spot market, suppliers were eager to move goods in the morning, but the falling SHFE aluminum prices depressed the purchasing interest in the market, so traded prices fell to RMB 15,200/mt from RMB 15,240/mt for domestic aluminum, with limited transactions. Traded prices for imported aluminum fell as well to RMB 15,150/mt in the afternoon from RMB 15,220/mt, with discounts reaching RMB 50/mt. 

    Lead:

    In Shanghai lead market, SMM increased lead prices by RMB 50/mt to RMB 13,700-13,900/mt in view of rebounding LME lead prices. However, traded prices remained around RMB 13,600/mt, neglecting strong LME lead prices and rising domestic copper prices. Struggles between suppliers and buyers will continue unless the demand improves.

    Zinc:

    SHFE zinc prices opened high but went lower. SHFE zinc prices showed unstable performance around RMB 15,000/mt, resulting in worse spot market. A small number of inquiries appeared in the morning around RMB 14,800/mt, but transactions became scarce when SHFE zinc prices moved downward, with traded prices in the RMB 14,600-14,700/mt range, and purchasing interest was low. The situation of strong LME zinc prices and weak domestic zinc prices, strong SHFE zinc prices and weak spot prices will continue.

    Tin:

    In Shanghai tin market, tin prices ended the upward trend. Smelters continued to raise prices, but tin prices still met downward pressure due to weak consumption. Market players will need some time to absorb continued price increases.

    Nickel:

    In Shanghai nickel market, offers for goods from Jinchuan Group were near ex-works prices level, and imported nickel prices received resistance at RMB 150,000/mt, and showed more active performance around RMB 149,000/mt, with an increase of more than RMB 3,000/mt today, dampening downstream buying interest. Cargo-holders were also in fear given high market risks.

Copyright © 2009, CBI (Shanghai) Co., Ltd. All Rights Reserved.

None of this material may be used for any commercial or public use in any form or means, without the prior written consent of CBI China. For reproduction issue, please contact us by email: metalresearch@cbichina.com or tel:86-21-51550040