SMM Daily Review (Aug. 27)

SHANGHAI, Aug. 28 (SMM) --

    Copper:

    SHFE copper prices fluctuated widely. SHFE spot-month contracts failed to break through RMB 50,000/mt, and fell below daily average line in the afternoon, hitting a low point of RMB 49,710/mt. In spot market, copper prices were close to RMB 50,000/mt in the morning, with discounts expanding to RMB 50-150/mt. Transactions remained weak when copper prices moved in the RMB 49,700-49,900/mt range in the morning, and discounts expanded to RMB 200/mt despite of falling SHFE copper prices. In the afternoon, copper prices fell to the range of RMB 49,500-49,800/mt, and discounts for domestic high-quality copper were RMB 50-100/mt, with limited market supply, and “Jiangtong” copper was mainly from

    Aluminum:

    SHFE aluminum prices bottomed out but received great downward pressure at RMB 15,000/mt. In spot market, similar to SHFE aluminum market, aluminum spot prices fluctuated in the RMB 14,900-15,000/mt range. Today, limited traders offered with slight premiums of RMB 10-20/mt, but trading sentiment was still weak. Spot discounts were RMB 30-50/mt for imported aluminum from Russia, with traded prices in the RMB 14,900-14,920/mt range, but overall transactions remained weak, and aluminum prices faced increasing pressure from RMB 15,000/mt.

    Lead:

    In Shanghai lead market, lead prices increased by RMB 400/mt again today after a rise of RMB 300-400/mt since Monday, and SMM lead prices were RMB 14,700-14,900/mt. Traded prices were RMB 14,800/mt, and a premium of RMB 100-200/mt during previous days disappeared from the market today. Both downstream consumers and traders adopted a cautious attitude when lead prices were close to RMB 15,000/mt. However, smelters held a firm attitude that lead prices will move up to RMB 15,000/mt.

    Zinc:

    SHFE zinc prices remained below average lines, with spot-month contracts even falling below RMB 15,000/mt. In spot market, SMM #0 zinc prices were RMB 14,950/mt, and falling SHFE zinc prices dragged down traded prices to RMB 14,900/mt in spot market, with weak transactions. Zinc market lacked upward momentum and was waiting for a clear direction from copper and other base metals markets.

    Tin:

    In Shanghai tin market, tin prices remained unchanged for three consecutive days, and the wait-and-see sentiment dominated both smelters and traders, leaving slim transactions.

    Nickel:

    In Shanghai nickel market, prices were RMB 145,000-146,000/mt for domestic nickel, still lower than nickel ex-works prices, while prices were RMB 142,000/mt for imported nickel. A wait-and-see attitude prevailed among market players. LME nickel prices trend will remain a major factor to determine domestic nickel prices, and domestic nickel prices will continue to fluctuate in the near future.

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