SMM Daily Review (Aug. 19)

SHANGHAI, Aug. 20 (SMM) --

    Copper:

    SHFE copper prices opened at RMB 48,300/mt, and then slipped straightly. SHFE copper prices fell rapidly in the afternoon and closed down more than 3%. In spot market, traded prices range for spot copper reached RMB 1,500/mt today. In the morning, traders were cautious about purchases given falling LME copper prices. However, even suppliers raised spot premiums to RMB 250/mt, almost no deals were made with the plunged SHFE copper prices in the afternoon. Trading has been in a deadlock in the morning when copper prices were RMB 47,500/mt, while copper prices slumped by RMB 1,000/mt in the afternoon, resulting in quiet market. If copper prices can find support at RMB 46,500/mt, a portion of speculative funds will be attracted to enter the market. Short positions were in strong position in the market upon market confidence shortage, as well as uncertainties in currency credit policy.

    Aluminum:

    SHFE aluminum prices opened at RMB 15,200/mt, but then fell to RMB 15,000/mt negatively affected by SHFE copper prices, and then even fell to RMB 14,850/mt. Spot-month contract prices closed at RMB 14,900/mt and above. Aluminum spot prices moved around RMB 15,050/mt in the morning, and plummeted to RMB 14,850/mt in the afternoon, with traded price range above RMB 200/mt today. Almost no deals were made in the afternoon, as the wait-and-see sentiment dominated both suppliers and downstream consumers.

    Lead:

    In Shanghai lead market, SMM lead prices remained unchanged, but spot discounts remained at RMB 100/mt. Lead prices found difficulties to receive support at RMB 13,500/mt, and lead market is expected to remain weak.

    Zinc:

    SHFE zinc prices surged temporarily and then moved downward, and then dropped straightly affected by SHFE copper prices plummet. However, SHFE zinc prices recovered slightly at closing and received great pressure at RMB 14,500/mt. The wide daily fluctuation range of RMB 500/mt caused consumers to be reluctant to purchase. In the morning, #0 zinc was traded at RMB 14,350/mt, with limited trading volumes. However, almost no deals were made in the afternoon given much lower zinc prices. Zinc spot prices have fluctuated around RMB 14,300/mt for three days, and will test RMB 14,000/mt if short positions continue to dominate the market.

    Tin:

    In Shanghai tin market, tin prices also experienced slight declines in view of continued adjustments in LME tin prices and significant declines in other base metal prices. High-quality tin prices failed to find support at RMB 120,000/mt due to weak consumption, while inferior brands tin prices fell to RMB 118,000/mt. Tin prices are expected to fluctuate in the near future.

    Nickel:

    In Shanghai nickel market, market prices were RMB 145,000/mt for nickel from Jinchuan Group, RMB 8,000/mt lower than nickel ex-works prices. However, no news appeared in the market that Jinchuan Group will reduce nickel prices, resulting in declines in Jinchuan nickel market supply. Prices for nickel from Russia are expected to fall from RMB 140,000/mt. Market transactions were very weak upon continued price declines.  

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