Ni – Premium continued to stabilize and spot import turned into loss

Date Sep 26 2018 15:14:42Source:SHMET

With regards to NI FP, offers in Shanghai bonded zone keep standing at the range of $220-$280, and the premiums for CIF is at the range of $200-$280 . The SHFE Spot/LME 3M was at 8.27 and that for 3M SHFE/LME 3M at 8.16. Russian Ni registered an import loss of RMB366/ton in spot (2%of import tax) and a loss of 2291RMB 3M forward.


Refined nickel spot import turned into loss and three month refined nickel import loss expanded. Spot premium of Russian nickel is basically stable and the market stocks continue to fall. It is near the National day holiday, the market transaction is flat.  

Edited by SHMET

Zn – LME zinc spot turned to premium and premium is at a high level with a light foreign trade market

Date Sep 26 2018 15:14:19Source:SHMET

Zinc Premiums in Shanghai bonded warehouse quoted at $290-$320/mt and CIF shanghai stood at $280-$310/mt. SHFE /LME spot zinc price ration is at 8.81. Today LME C-3m rose 7B, the spot zinc ingot import loss is RMB417/mt in the current month and 3m import loss in forward market is around RMB1524/mt lost. Custom duty exempt brands, Australian and Korean had a loss of RMB233/mt in spot import market, but it loses RMB1541mt in forward import.


The imported zinc foreign trade market is light today. It is close to the Mid-Autumn Festival holiday, the cargo holders’ shipping intentions are low. Although today's foreign trade premium continues to correct, the absolute price is still at a high level. The inquiries of the buyers are fewer and the transaction is light.


At present, the theoretical calculation of the import zinc market is at a loss, but this is related to the high premium reported by the current cargo holders. Some cargo holders choose to turn to the domestic market for sales, and the traders’ profit at the high premium is greatly squeezed. Therefore, the activity of the foreign trade market has decreased. It is expected that the foreign trade market will still be relatively light before the holiday.




Edited by SHMET

Cu-Import cools down a bit, sources say Codelco recent premium is $88/t

Date Sep 26 2018 15:01:40Source:SHMET

Premiums for CIF in Shanghai came to $105-$120/mt, and that for Shanghai bonded warehouse was at $110-$125/mt. SHFE Spot/LME 3M arb was at 8.07, whilst 3M SHFE/3M LME arb came to 8.01. LME C-3m valued was $3.25C, with a spot import gain of around RMB472/mt and a loss in forward market of about RMB998/mt.


According to sources, Codelco signed copper supply with a Chinese customer with premium 88$ over LME. Codelco hopes to sign contracts with less but more strategic customers and will give priority to customers who are more flexible to terms.

Edited by SHMET

Al–LME aluminum spot month contango further narrowed and import cost of aluminum ingots rose above 17000RMB

Date Sep 26 2018 14:47:21Source:SHMET

Traders reported that spot premiums CIF shanghai remained at level $95-$115 as usual, so did the physical warrants. LME C-3m valued edged to 26.5 C. SHFE Spot/LME 3M arb flattened out at 7.15, suggesting importing may lose around RMB 2609/mt in spot market and RMB2799/mt in forward market.


On the one hand, LME aluminum spot month contango further narrowed and renminbi slightly fell against US dollar, thus import cost of aluminum rose back above 17000 RMB. On the other hand, spot month SHFE/LME aluminum dropped. Overall, today’s value of import loss of aluminum ingots obviously increased from yesterday.

Edited by SHMET

【Ni Morning】Macro expectation is unclear and nickel price continued its fluctuation trend

Date Sep 26 2018 09:54:15Source:SHMET

On Tuesday night, the US dollar oscillated and fell, and the non-ferrous metals had a mixed trend. The closing price of LME nickel was $12,955, up $135, or 1.05%. The most traded contract of SHFE Nickel closed at 105,560 yuan, up 490 yuan, or 0.47%. On the macro side, the market generally expects the Fed to announce a rate hike at this week's monetary policy meeting, and there is not much room for the dollar to strengthen further. US consumer confidence hit an 18-year high in September, and US economic data is strong, continuing to support the dollar. The market focused on the Fed resolution on Thursday, and the nonferrous metals continued to be under pressure. In terms of spot, the exchange's refined nickel inventories continued to decline, Jinchuan nickel supply continued to be tight, and the premium remained high. The short-term stainless steel market is strong, which supports the nickel spot, but the weaker ferronickel is expected to suppress the nickel price. The macro factors are frequently disturbed, the fundamentals are intertwined with longs and shorts, and the nickel price continues to fluctuate.

Edited by SHMET