SMM Daily Review (Sept. 18)

SHANGHAI, Sept. 21 (SMM) --

    Copper:

    SHFE copper prices opened low and went lower slowly, and SHFE three-month contract copper prices dropped below RMB 49,000/mt in the afternoon due to negative impact from a 3% decline in A-share stock market, and the purchasing interest improved slightly when copper prices were lower. SHFE spot-month contract copper prices fluctuated around RMB 49,400/mt in the morning, and fell below RMB 49,000/mt in the afternoon as well.

    In spot market, transactions were weak during weekend. In the morning, discounts for parity copper were RMB 10-150/mt, with traded prices in the RMB 49,200-49,300/mt range, while discounts for premium copper were RMB 50-100/mt, with traded prices around RMB 49,350/mt. In the afternoon, spot copper prices faced difficult in standing at RMB 49,000/mt along with falling SHFE copper prices. Copper prices are expected to fluctuate around RMB 49,000/mt before China's National Day holiday.

    Aluminum:

    SHFE aluminum prices opened at RMB 15,000/mt, and all contracts dropped after hitting RMB 15,050/mt. SHFE aluminum prices were restricted by daily average line, but still received support from 5-day average line, and closed at RMB 14,950/mt. In spot market, premiums were RMB 50/mt, with offers stabilizing at RMB 15,000/mt and being brisk in the RMB 15,050-15,060/mt range. Transactions were stable at RMB 15,000/mt.

    Lead:

    In Shanghai lead market, lead prices ended 3-day rise hastily, and dropping LME lead prices depressed market sentiment, and traders' sell-off activities even added negative impact to the market. Consumers adopted a wait-and-see attitude with regard to price fluctuations. Smelters' firm sentiment was also dampened. In domestic market, lead prices faced greater resistance at RMB 16,000/mt, and whether or not domestic lead prices can find support at RMB 15,000/mt will depend on LME lead price trends. 

    Zinc:

    SHFE zinc prices opened low, with spot-month contracts moving around RMB 15,100/mt and three-month contracts climbing to RMB 15,300/mt in the morning. In the afternoon, SHFE zinc prices closed at daily levels due to a 3% decline in A-share stock market, with spot-month contracts closing at RMB 14,950/mt and three-month contracts stabilizing at RMB 15,150/mt. In spot market, zinc prices moved around RMB 15,000/mt, and traders lowered zinc prices to RMB 14,950/mt, although smelters were firm with their offers above RMB 15,000/mt. In the afternoon, zinc market became quiet due to falling SHFE zinc prices, with lukewarm trading activity.

    Tin:

    In Shanghai tin market, traded prices stabilized at RMB 118,000/mt, and consumers still purchased on as-needed basis, with deals mainly done for “Yunheng” brand tin, while “YT” brand tin was mainly traded among traders. 

    Nickel:

    In Shanghai nickel market, offers were RMB 134,000/mt for Jinchuan nickel, almost flat with ex-works price levels, and traders were hesitate in moving goods due to higher costs, while imported nickel traders also were unwilling to sell goods due to loss when prices at RMB 131,000/mt. The overall market remained slim.

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