SMM Daily Review (Sept. 3)

SHANGHAI, Sept. 4 (SMM) --

    Copper:

    SHFE copper prices opened flat and moved upward straightly since noon, with daily growth rate of more than 2%, as Chinese A-share stock markets increased by nearly 4.8% stimulated by the remarks that China Securities Regulatory Commission will promote the stable and healthy development of capital market through 4 measures. In this context, SHFE copper prices are expected to rise rapidly to RMB 49,000/mt. In spot market, spot discounts ranged from negative RMB 50/mt to positive RMB 50/mt, with traded prices moving in the RMB 47,800-48,150/mt range. Transactions were brisk. Spot copper prices soared to the range of RMB 48,150-48,200/mt driven by the surge in SHFE copper prices, and transactions became weak around RMB 48,500-48,800/mt. Trading volumes jumped at lower prices for two consecutive days upon optimistic price outlook. In the afternoon, traders with high-quality copper were reluctant to sell goods with premiums below RMB 100/mt, while some traders were active in cargo movement.

    Aluminum:

    SHFE aluminum prices moved smoothly in the morning, and inched up in the afternoon due to stabilized LME aluminum prices and rebounding Chinese A-share stock markets. Spot-month contracts tried to approach RMB 15,000/mt, but received strong pressure. In spot market, market supply of brands aluminum was limited, and inferior brands aluminum traders were also reluctant to move goods at lower prices. A number of cargo-holders remained confident in aluminum prices above RMB 15,000/mt. However, spot aluminum prices will find difficulties in moving up to RMB 15,000/mt.

    Lead:

    In Shanghai lead market, SMM lead prices were unchanged for three days. Although a number of smelters were firm with their offers above RMB 15,000/mt, but downstream consumers stood on sidelines, only limited deals were made around RMB 14,900/mt. Lead prices will continue to move around RMB 15,000/mt before a clear market direction appears.

    Zinc:

    SHFE zinc prices continued to show a performance of strong forward contracts and weak soon-to-expire contracts. Spot-month contracts remained weak, while three-month contracts climbed to RMB 15,200/mt in the afternoon, and are expected to move up 10-day average line again in the short term. In spot market, #0 zinc was traded at RMB 14,650-14,700/mt in the morning, with stable transactions. In the afternoon, spot zinc prices moved up gradually, and inquiries increased as well, but a portion of traders became unwilling to move goods, since they predict zinc prices will rise to RMB 14,800/mt tomorrow.

    Tin:

    In Shanghai tin market, tin prices moved in the RMB 117,000-118,000/mt range. However, tin prices showed a sign of rise, as other base metal prices stabilized and LME tin prices climbed as well. Downstream buying interest will likely grow with the onset of September, helping improve trading sentiment.

    Nickel:

    In Shanghai nickel market, prices were RMB 139,000/mt for nickel from Jinchuan Group, still higher than market prices. Loss for imported nickel still existed when prices were RMB 135,000/mt. Overall market supply was limited, and rebounding LME nickel prices even increase a reluctance of traders in selling goods. Prices for nickel from Jinchuan Group are expected to move up to RMB 140,000/mt rapidly, if LME nickel prices climb steadily.

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