SMM Daily Review (Aug. 25)

SHANGHAI, Aug. 26 (SMM) --

    Copper:

    SHFE copper prices opened low and kept fluctuating widely given shortages of upward momentum. In spot market, struggles between suppliers and buyers remained intense, and discounts ranged from negative RMB 50/mt to positive RMB 50/mt. Cargo-holders were reluctant to sell due to optimistic price outlook, especially for domestic high-quality premium copper such as Jiangtong and Yuntong, with premiums of RMB 50/mt and limited trading volumes. However, downstream consumers were cautious with regard to soaring and fluctuating copper prices. Copper prices are expected to move around RMB 49,000/mt, and find great resistance at RMB 50,000/mt.

    Aluminum:

    SHFE aluminum prices opened high but went lower, with spot-month contracts fluctuating around RMB 15,000/mt and closing down in the afternoon. In spot aluminum market, domestic aluminum prices tried to be flat at futures prices, but the wait-and-see sentiment dominated downstream consumers, causing cargo-holders to reduce prices in order to move cargos, leaving spot discounts at RMB 20-30/mt. Traded prices were RMB 15,000/mt in the morning, but prices for some inferior brands aluminum fell to RMB 14,950/mt in the afternoon, and transactions remained weak. Aluminum prices faced great pressure at RMB 15,000/mt, and lacked upward momentum.

    Lead:

    In Shanghai lead market, SMM lead prices were in the RMB 13,900-14,100/mt range, and spot premiums appeared in the market. A portion of downstream consumers remained hesitated in the morning, but traders began purchasing, driving traded prices up to RMB 14,200/mt. In the afternoon, downstream consumers purchased gradually, pushing lead prices up to the range of RMB 14,300-14,400/mt. However, domestic lead prices received greater resistance to break through RMB 14,500/mt due to falling LME lead prices.

    Zinc:

    SHFE zinc prices opened flat, and went lower in the afternoon negatively affected by LME zinc prices. SHFE zinc three-month contracts failed to stabilize at RMB 15,200/mt, with shortages of upward momentum. After soared yesterday, zinc prices reported weak performance at RMB 15,000/mt in spot market today. Although spot discounts narrowed slightly, transactions remained weak and most consumers held wait-and-see attitude.

    Tin:

    In Shanghai tin market, soaring LME tin prices and rebounding other base metal prices improved tin smelters’ confidence in raising tin prices again, so prices for high-end tin climbed to RMB 120,000/mt today, and prices for selected inferior brands tin moved up to RMB 118,500/mt as well.

    Nickel:

    Jinchuan Group raised nickel ex-works prices yesterday, and today “Jinchuan” nickel experienced poor sales at RMB 147,000-148,000/mt, and a portion of traders adopted a wait-and-see attitude. Market prices for “Jinchuan” nickel remained lower than ex-works prices, so the wait-and-see attitude still dominated the market.

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