SMM Daily Review (Sept. 10)

SHANGHAI, Sept. 11 (SMM) --

    Copper:

    SHFE copper prices moved below daily average line in the morning, but climbed above RMB 50,000/mt in the afternoon fueled by rising LME copper prices, with all contracts up to RMB 50,500/mt. In spot market, SHFE copper prices fell from the high level, dampening spot market sentiment. Spot discounts were RMB 100-200/mt in the morning, with traded prices in the RMB 49,650-49,850/mt range, while traded prices for copper from Jiangxi Copper were RMB 49,800-49,900/mt, and spot discounts for hydro-copper were RMB 300/mt in the morning. In the afternoon, SHFE copper prices grew by RMB 500/mt, while spot discounts for copper have expanded to RMB 150-400/mt, with traded prices soaring above RMB 50,000/mt. However, the purchasing interest was low, and the relatively high discounts generated the cautiousness of cargo-holders in selling goods.

    Aluminum:

    SHFE aluminum prices opened high and moved below daily average line in the morning, with both trading volume and positions down slightly. SHFE aluminum prices fell from yesterday's level of RMB 15,260/mt, but still found support from RMB 15,000/mt. In spot market, discounts have expanded to RMB 50/mt, with traded prices in the RMB 15,070-15,100/mt range in the morning. Today, Chalco did not move cargos, and "Tongchuan" and "Dongfang" brands aluminum traders hoped to sell goods at lower prices, dragging down the traded price range. In the afternoon, SHFE aluminum prices moved up to RMB 15,100/mt, and spot prices also increased to RMB 15,100-15,130/mt, but trading volume was scarce.

    Lead:

    In Shanghai lead market, LME lead prices hovered around USD 2,400/mt in the morning, while domestic market players remained optimistic about future prices. SMM lead prices were unchanged. Only limited brands lead traders were firm with offers at RMB 16,500/mt, market prices mainly hovered around RMB 16,400/mt. Downstream consumers stood on sidelines in view of LME lead prices corrections. In the afternoon, LME lead prices plunged, depressing market sentiment greatly. Lead prices will test the support level of RMB 16,000/mt tomorrow first, but lead prices will likely fall below RMB 15,000/mt, if this round of speculations came to an end.

    Zinc:

    SHFE zinc prices slipped in the morning, and moved up in the afternoon, with spot-month contracts moving around RMB 15,300/mt and three-month contracts fluctuating in the RMB 15,560-15,650/mt range. Spot discounts were RMB 300-400/mt, and #0 zinc was traded around RMB 15,200/mt, with weak transactions. SHFE zinc prices lacked upward momentum, pushing up the wait-and-see sentiment of buyers. In the mean time, the plunged lead price will also exert negative impact on zinc prices. Zinc prices will stabilize at RMB 15,000/mt temporarily.

    Tin:

    In Shanghai tin market, prices for "Yunshan" and "Yunheng" brands tin grew as well today after prices for "YT" brand tin increased to RMB 120,000/mt yesterday. However, transactions remained weak. Inferior brand tin was traded at RMB 117,500/mt, mainly among small traders. Domestic tin prices will unlikely rise further if LME tin prices continue to dip.

    Nickel:

    In Shanghai nickel market, offers were RMB 139,500/mt for nickel from Jinchuan Group, while offers were RMB 136,000-136,500/mt for imported nickel. Nickel market remained neutral. 

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