SMM Daily Review (Aug. 20)

SHANGHAI, Aug. 21 (SMM) --

    Copper:

    SHFE copper prices opened high, and then soared shortly, but experienced slumps after 10:30 again. SHFE copper spot-month contract prices soared to RMB 47,850/mt, and then stabilized after fell to RMB 47,000/mt, with rapid narrow fluctuations at noon. In spot market, premiums and discounts appeared in turn, waning purchasing interest of consumers. In the morning, traded price range for spot copper was RMB 500/mt. In the afternoon, traded prices climbed given stabilized A-share market and support from LME copper price of USD 6,100/mt. Transactions improved compared to morning, with traded prices picking up to the range of RMB 47,500-47,700/mt. Tonight, The US will release the number of applications for unemployment benefits and Philadelphia Fed manufacturing index in August, and impact from these data is expected to be neutral. A portion of economic data from Australia and Britain will show a direction for Euro trend, which will have effect on US dollar and LME metal prices as well.

    Aluminum:

    SHFE aluminum prices opened at RMB 15,000/mt, and then experienced plummet after 10:30. However, SHFE aluminum spot-month contract prices fell at a much slower pace. In spot market, prices were RMB 14,850-14,880/mt for domestic aluminum, and RMB 14,810-14,820/mt for imported aluminum in the morning, with expanding price spread between domestic and imported aluminum. At noon, a portion of traders and consumers purchased due to rapid recovery of SHFE aluminum three-month contract prices, helping drive up traded prices to the range of RMB 14,870-14,900/mt. Traded prices faced marked pressure at RMB 15,000/mt, but also received limited support in downward track. 

    Lead:

    In Shanghai lead market, SMM lead prices remained unchanged, while market prices continued to fluctuated around RMB 13,400/mt, and lacked upward momentum to climb to RMB 13,500/mt. However, lead prices also met support from cargo-holders below RMB 13,300/mt. The neutral market sentiment was attributed to shortages of purchasing interest from consumers. 

    Zinc:

    SHFE zinc prices tracked SHFE copper price trend, with spot-month contract stabilizing at RMB 14,500/mt and daily highest price level of RMB 14,750/mt. In spot market, zinc prices moved around RMB 14,500/mt in the morning, and falling SHFE zinc prices hampered purchasing interest in spot market significantly. In the afternoon, cargo-holders raised offers with climbing SHFE zinc prices, while downstream consumers held cautious attitude with regard to wide fluctuations in zinc prices.

    Tin:

    In Shanghai tin market, tin prices remained in downward track. Cargo-holders reduced high-quality tin prices to RMB 119,000/mt from RMB 120,000/mt, and price spread between brands tin and inferior brands tin narrowed to RMB 1,000/mt. Market prices are waiting for a further correction.

    Nickel:

    In Shanghai nickel market, Jinchuan Group reduced nickel ex-works prices by RMB 7,000/mt to RMB 146,000/mt in view of dropping LME nickel prices and plunged prices for other base metals. However, market prices have fluctuated around RMB 146,000/mt for four days, and traded prices were RMB 145,000/mt, with RMB 1,000/mt lower than latest nickel ex-works prices at Jinchuan Group. Prices for imported nickel have moved in the RMB 141,000-142,000/mt range for four days as well.  

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