SMM Daily Review (Sept. 30)

SHANGHAI, Oct. 9 (SMM) --

    Copper:

    SHFE copper prices opened high and went higher, and SHFE three-month contract copper prices have risen by more than 2.5% in the morning, up RMB 1,100/mt. SHFE spot-month contract copper prices closed at RMB 47,650/mt, and three-month contract copper prices fluctuated around RMB 47,300/mt. A-share stock market closed at rise on last trading day before the holiday.

    In spot market, copper prices rebounded to the range of RMB 47,500-47,650/mt, and market transactions improved from yesterday levels, and most cargo-movers sold goods to collect cash, so spot discounts expanded to RMB 100/mt gradually. Most inquiries were from a number of optimistic market players, and transactions were moderate today. SHFE copper inventories are expected to drop based on the transactions during three trading days of this week, but sources report that a portion of imported copper will arrive at port during the holiday.

    Aluminum:

    SHFE aluminum prices opened high and went higher to RMB 14,850/mt. Positions of SHFE near-by contracts continued to drop, and positions of three-month contracts also failed to report increases. In spot aluminum market, most cargo-holders have been in rest state, and only selected traders were firm at RMB 14,900/mt, with spot premiums of RMB 50/mt, but no deals were done. Limited volumes of aluminum from famous smelters are expected to arrive during the holiday.

    Lead:

    In Shanghai lead market, SMM raised lead prices by RMB 100/mt to the range of RMB 15,500-15,700/mt, and traded prices remained above RMB 15,400/mt upon the firmness of cargo-holders, but the trading sentiment was lukewarm.

    Zinc:

    SHFE zinc prices increased to RMB 15,000/mt, with daily growth rate of 2.5%. SHFE three-month contract zinc prices stabilized at RMB 15,000/mt before closing. In spot zinc market, offers were RMB 15,000-15,050/mt, but market sentiment was weak, and market players were optimistic that zinc prices will move above RMB 15,000/mt after the holiday.

    Tin:

    In Shanghai tin market, only limited end-users were making deals during the last trading day before the holiday, and offers for high-quality tin were firm at RMB 117,000/mt. A portion of traders planed to make deals after the holiday, so lower-end traded prices for low-quality tin have fallen to RMB 116,000/mt. 

    Nickel:

    In Shanghai nickel market, a number of optimistic market players built stocks upon rising LME nickel prices. Inventories of Jinchuan nickel dropped after 3-day sell-off activities, driving up offers for Jinchuan nickel to the range of RMB 128,000-129,000/mt. Hence, transactions of imported nickel improved, with traded prices up to the range of RMB 126,000-127,000/mt. 

Copyright © 2009, CBI (Shanghai) Co., Ltd. All Rights Reserved.

None of this material may be used for any commercial or public use in any form or means, without the prior written consent of CBI China. For reproduction issue, please contact us by email: metalresearch@cbichina.com or tel:86-21-51550040