SMM Daily Review (Sept. 24)

SHANGHAI, Sept. 25 (SMM) --

    Copper:

    SHFE three-month contract copper prices opened at RMB 48,000/mt, and moved narrowly in the morning, with support from buyers at RMB 47,600/mt. SHFE copper prices soared to RMB 48,350/mt in the afternoon driven up by rising A-share prices in stock market, with spot-month contracts up to RMB 48,470/mt. Positions of spot-month contracts declined gradually.

    In spot market, discounts ranged from RMB 100/mt to RMB 0/mt. In the morning, inquiries increased in spot market when SHFE copper prices dipped, and trading volumes were up when prices were low. Traded prices were in the RMB 47,850-48,100/mt range in the morning, and traded prices for premium copper remained above RMB 48,000/mt, while discounts for parity copper were limited, but its transactions were still worse than premium copper. Daily price spread reached RMB 500/mt again in the afternoon when SHFE copper prices rose rapidly, and market players stood on the sidelines.

    Aluminum:

    SHFE aluminum prices opened low, and received greater resistance from RMB 15,000/mt. However, SHFE spot-month contracts aluminum prices moved narrowly with positive impact from strong spot premiums in the market.

    In spot market, traded prices were in the RMB 15,030-15,070/mt range, with premiums of RMB 80-100/mt. Aluminum prices have outperformed other base metal prices during this due to brisk trader activities, helping guide downstream consumers. In the mean time, the trading sentiment was better than other base metals as well, and this situation will likely sustain until the last three trading days before National Day holiday.

    Lead:

    In Shanghai lead market, LME lead prices slumped by USD 100/mt, and SMM lead prices only declined by RMB 100/mt to the range of RMB 15,600-15,800/mt. Traders moved goods at lower prices, posting a blow to smelters. Lead prices will fluctuate around RMB 15,500/mt in the short term. Lead prices dropped at a slower pace supported by domestic costs, and any upward movement will depend on LME lead price trends.

    Zinc:

    SHFE three-month contract zinc prices opened at RMB 15,300/mt, with day-low level of RMB 14,970/mt and a decline of 1.46%. In the afternoon, the declines narrowed to 0.39% along with the recovery of A-share prices in stock market.

    In spot market, discounts were RMB 200-300/mt, and inquiries increased when zinc prices were RMB 14,750-14,800/mt in the morning, and the trading sentiment was better than previous two days.

    Tin:

    In Shanghai tin market, tin prices will remain stable before National Day holiday. Today, Yunnan Tin Company adjusted offers slightly, but any impact on the market prices was limited. The market remained bearish.  

    Nickel:

    LME nickel prices continued to feel pressure, and the pessimistic sentiment remained in Shanghai nickel market. Jinchuan Group moved goods at RMB 132,000/mt before the holiday, and imported nickel prices had to drop to below RMB 130,000/mt.

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