SMM Daily Review (Sept. 22)

SHANGHAI, Sept. 23 (SMM) --

    Copper:

    SHFE copper prices rebounded slightly, and kept moving above daily average line in the morning, with spot-month contracts hitting RMB 49,050/mt and three-month contracts up to RMB 48,940/mt. However, A-share stock market dropped by 2.34% to below 2,900 points in the afternoon, having negative impact on commodity market. SHFE copper prices dropped by nearly RMB 500/mt, and later climbed and closed up only 0.58% finally.

    In spot market, discounts were RMB 120-150/mt for parity copper and RMB 50-100/mt for premium copper. Copper prices fluctuated in the RMB 48,800-49,000/mt range in the morning, and deals were mainly done below RMB 49,000/mt. However, the plunged SHFE copper prices depressed market sentiment again, and transactions were scarce, even when copper prices fell to RMB 48,500/mt, or a premium of RMB 20-50/mt appeared in the market, indicating the market players adopted a cautious attitude in order to avoid pre-holiday market risks.  

    Aluminum:

    SHFE aluminum prices outshined LME aluminum prices. SHFE aluminum prices opened high, and SHFE spot-month contract aluminum prices remained stable at RMB 15,000/mt in the morning, and later recovered to RMB 15,000/mt rapidly after slight declines when A-share stock market plummeted in the afternoon. SHFE three-month contract aluminum prices fluctuated wildly, and total positions dropped constantly.

    In spot market, aluminum prices remained at RMB 15,000/mt, keeping a premium of RMB 50-80/mt. Most deals were made at low price of RMB 15,030/mt rapidly, and the purchasing interest became low when offers climbed to RMB 15,080/mt. CHALCO series high-grade aluminum was unavailable in the market when aluminum prices were below RMB 15,100/mt without inflow of imported aluminum. Traders took the lead in building stocks, triggering the trading sentiment in aluminum spot market, and downstream consumption was improved as well. A sign of stock replenishment before China's National Day holiday is emerging in the market. 

    Lead:

    In Shanghai lead market, SMM lead prices remained unchanged. Trader sentiment stabilized, since no low-priced lead was available in the market. Traded prices were RMB 15,500/mt, and inquiries were up despite of general actual transactions. Lead prices will move in the RMB 15,500-15,800/mt range in the short term.  

    Zinc:

    SHFE zinc prices opened high, but then fell below daily average line, and later even dropped straightly in the afternoon with plunging A-share stock market, with daily traded price spread reaching RMB 200/mt, and trading volumes continued to shrink as well. SHFE spot-month contract zinc prices were unchanged at RMB 15,100/mt, while SHFE three-month contract zinc prices consolidated around RMB 15,350/mt.

    In spot market, zinc prices were stable at RMB 15,000/mt, and #0 zinc prices were RMB 15,100/mt in the morning. However, SHFE zinc prices inched down in the afternoon, and although spot discounts narrowed, the buying interest remained weak.

    Tin:

    Both traded prices and trading volume shrank in Shanghai tin market negatively affected by a portion of low-end tin products with prices at RMB 117,500/mt.

    Nickel:   

    In Shanghai nickel market, Jinchuan Group reduced nickel ex-works prices by RMB 2,000/mt to RMB 131,000/mt again, and market prices dropped to RMB 131,000/mt as well dampened by weak demand, and imported nickel prices fell below RMB 130,000/mt again. In the afternoon, recovering LME nickel prices comforted market sentiment, and nickel prices are expected to end the downward trend tomorrow.

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