SMM Daily Review (Aug. 18)

SHANGHAI, Aug. 19 (SMM) --

    Copper:

    SHFE copper prices fluctuated widely, and the situation of strong soon-to-expire contract and weak forward contract indicates weak market sentiment. In spot market, spot premiums increased from 0 to RMB 100/mt in the morning when SHFE copper prices fell to a low point, and spot premiums fell to 0 in the afternoon when SHFE copper prices rebounded slightly. There were limited imported copper in the market, and almost no discounts appeared in the market. Copper prices stabilized at RMB 48,000/mt finally. At present, copper prices faced a correction, but the uptrend will remain unchanged. 

    Aluminum:

    SHFE aluminum prices opened low and then rebounded slightly above daily average line, and moved upward to RMB 15,000/mt in the afternoon with support from recovery of LME aluminum prices. In the morning, offers for spot aluminum moved downward from RMB 14,850/mt, and spot discounts for imported aluminum were RMB 80/mt, with high sentiment in cargo movement. Suppliers reduced prices actively in the morning given sluggish market sentiment and low purchasing interest, and offers for domestic aluminum fell to RMB 14,900/mt, attracting a portion of speculators. Aluminum spot prices climbed to RMB 14,950/mt in the afternoon, but the condition of strong SHFE market and weak spot market remained unchanged.

    Lead:

    In Shanghai lead market, SMM reduced lead prices by RMB 100/mt to RMB 13,500-13,600/mt. Smelters were firm with their offers at RMB 13,500/mt, but downstream consumers still had no interest in purchases after plunged securities and futures markets yesterday.

    Zinc:

    SHFE zinc prices moved passively in the morning, but moved upward unexpectedly in the afternoon, with overall weak transactions. In spot market, SMM #0 zinc prices were RMB 14,300-14,400/mt. Inquiries increased around RMB 14,300/mt in the market in the morning, and some traders purchased at lower prices, while downstream consumers purchased based on their production needs and remained cautious after futures markets plunged yesterday. Zinc spot prices will move around RMB 14,500/mt tomorrow even if SHFE zinc prices stabilize at RMB 14,500/mt.

    Tin:

    In Shanghai tin market, tin prices stabilized, with prices for “YT” brand tin above RMB 120,000/mt and prices for inferior brands tin at RMB 119,000/mt. The wait-and-see sentiment dominated the market. Tin smelters ended to raise tin prices given weak consumption and pessimistic sentiment in the market.

    Nickel:

    In Shanghai nickel market, nickel prices remained unchanged today. However, LME nickel prices rebounded slightly, improving confidence in domestic market and generating a reluctance by cargo-holders to sell goods, so domestic nickel will likely be unavailable at RMB 145,000/mt.

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