SMM Daily Review (Sept. 25)

SHANGHAI, Sept. 28 (SMM) --

    Copper:

    SHFE copper prices opened down RMB 1,200/mt, or a decline of more than 2%, but SHFE copper prices still showed a firm performance at RMB 47,000/mt, and moved smoothly in the morning. In the afternoon, SHFE copper prices narrowed declines along with rising LME copper prices. Both spot-month and 912 contracts backed ward gradually, and 1001 contracts experienced an unexpected growth of more than 10,000 lots in total positions. Trading volumes increased as well.

    In spot market, discounts narrowed today, and discounts for high-quality copper ranged from RMB 0/mt to positive RMB 50/mt, and discounts for parity copper ranged from negative RMB 50/mt to RMB 0/mt, with traded prices moving in the RMB 47,200-47,300/mt range in the morning. Traded prices began rising at noon, and offers for “Jiangtong” copper stabilized at RMB 47,400/mt, and traded prices were driven up to the range of RMB 47,400-47,500/mt in the afternoon. Deals were mainly done at lower price during the last trading day before weekend, and inquiries were up. Today, supply of parity copper was limited, so discounts were limited as well. Copper prices at RMB 47,000/mt were acceptable for most consumers, which helped limit downward room for copper prices.

    Aluminum:

    SHFE aluminum prices opened low, and later moved up. In spot market, traders were firm with premiums of RMB 100/mt and offers at RMB 15,000/mt. However, today the cargo movement of CHALCO at RMB 15,000/mt broke down an offensive and defensive alliance among traders, so traded prices at RMB 14,950/mt appeared in the market. Transactions were brisk, and aluminum market was relatively bullish.

    Lead:

    In Shanghai lead market, SMM reduced lead prices by RMB 200/mt to the range of RMB 15,400-15,600/mt, and offers were mainly quoted at RMB 15,300/mt in the market, and initiative inquiries increased significantly, and transactions improved as well, indicating the relatively strong lead prices at RMB 15,000/mt in Shanghai market.  

    Zinc:

    SHFE zinc prices opened low and went higher. SHFE three-month contract zinc prices consolidated at RMB 14,970/mt in the morning, and moved up in the afternoon due to recovery of LME zinc prices. In spot market, #0 zinc was quoted at RMB 14,750/mt, and spot discounts were about RMB 200/mt, which helped stimulate the enquiries, resulting in brisk transactions, and indicating the limited downward room for zinc prices.

    Tin:

    In Shanghai tin market, traded prices dropped slightly to the range of RMB 117,000-118,000/mt due to negative impact from low-priced tin in the market. The trading sentiment became lukewarm before China's National Day holiday, so tin market will stabilize in the near future.

    Nickel:

    In Shanghai nickel market, nickel prices dropped below RMB 130,000/mt, with offers for Jinchuan nickel at RMB 128,000/mt and offers for imported nickel at RMB 126,000/mt. Initiative inquiries appeared and the purchasing interest was higher when prices were lower. However, cargo movement of traders was limited due to higher costs. Traders became much more reluctant to sell goods in the afternoon after LME nickel prices stabilized.

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