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Nickel-SHMET Spot Market Briefing20141031

Date Oct 31 2014 17:02:35Source:SHMET
Oct.31,2014(SHMET)--

Nickel was marked lower on the opening, along with other commodities and equities, after the dollar strengthened due to the FOMC statement. Most markets had recovered by the London close however and nickel was clearly the LME outperformer, up $160 on the day and about $500 off its lows. It continues to be buoyed by consumer buying interest with some buyers looking beyond the weak, over-supplied short-term picture and towards a more balanced supply/demand scenario in 2015.Today, Shanghai spot nickel was quoted at 105800-106200 rmbs per ton, up 1200 from the previous session. Jinchuan nickel traded at 106200 rmbs per ton, Russian nickel traded at 105800 rmbs per ton. In domestic market, the spot nickel price rebounded and gained with a light turnover. The traders replenished in small quanity. Current nickel price changed largely and the market trading situation looked cautious.

Edited by SHMET

Zinc-SHMET Spot Market Briefing20141031

Date Oct 31 2014 16:41:34Source:SHMET
Oct.31,2014(SHMET)--

LME three-month zinc closed at 2300 dollars, up 0.2%. The hawkish tone of the FOMC statement in the US was the catalyst for the stronger dollar but zinc had clawed back its early losses by last night's close. It all goes to show that zinc is not really trading on its own fundamentals at the moment, but rather reacting to news items lead send ST trend followers to hit either the "buy" or "sell" button. Spreads are still tight but have traded only sporadically and lightly. Shanghai spot zinc 0# was quoted at 16985-17045 rmbs per ton, up 65 with backwardation widening from 260 to 320 rmbs per ton, 1# zinc was quoted at 16925-16985 rmbs per ton, up 65 with backwardation widening from 200 to 260 rmbs per ton. Today, main contract 1501 pricc rose, the backwardation remained. The traders said that domestic physical price were  a little far from imported zinc. In the market, Shuangyan, Yuguang traded a little actively and speculators mostly chose hand-to-mouth buying so as to avoid unsalable situation. The traders were selling actively and the investors mostly purchased on demand. Overall trading condition was flat.

Edited by SHMET

Lead-SHMET Spot Market Briefing20141031

Date Oct 31 2014 16:31:44Source:SHMET
Oct.31,2014(SHMET)--

Shanghai spot lead was quoted at 13580-13700 rmbs per ton, down 30 from the previous trading day, with spread moving from 90 contango to 30 back. As the U.S Federal Open Market Committee confirmed that it was to end its latest bond buying programme this month which in turn resulted in a stronger dollar and weighing on metal prices. Meanwhile, data on Thursday showed that a smaller trade deficit and surge in defense spending buoyed U.S. economic growth in the third quarter. Gross domestic product grew at a higher-than-expected annual pace of 3.5 percent. Overnight, LME lead fluctuated down overnight, closed at 2013 dollars per ton, down 16. The whole volume in the day down 116 to 2812 lots, the holdings rose 1358 to 115474 lots and the inventory grew 2050 to 226525 tons. SHFE lead price still lacked enough energy for changing current balance as there was no good news for metals. The spot lead underperformed recently with the bearish sentiment remained intact and smelter sales unchanged, but the warrants supply flood the market, because of the month-end capital pressure and worries about that warrants moved from back to contango due to the weak physicals. Downstream buying appetite were quite small, most people remained on the sidelines.

 

 

Edited by SHMET

Aluminum-SHMET Spot Market Briefing20141031

Date Oct 31 2014 15:14:10Source:SHMET
Oct.31,2014(SHMET)--

Shanghai spot aluminum was quoted at 13650-13710 rmbs per ton, unchanged from yesterday, with trading in contango narrowing from 140 to 80 rmbs per ton. Wuxi quoted 13680-13690 rmbs per ton. On Thursday, LME aluminum closed at 2024 dollars, up 0.25/0.01%. Fed Reserve made its announcement last night that it is ending its monthly bond purchase program, lead to the weakness in the price of aluminum. With the stronger dollar, it might move head to lower further. Shanghai main contract 1501 ended at 13865 rmbs in the night session, down 45 by 0.32%. Stocks climbed a net 13,450 tonnes to 4,441,425 tonnes due to a 17,200-tonne increase at Vlissingen while cancelled warrants fell a net 56,750 tonnes to 2,559,750 tonnes today, predominantly due to declines in Vlissingen. SHFE aluminum price fluctuated up this morning. German unemployment rate were clearly better than expected, while the stronger dollar limited the rise in aluminum price. Shanghai physicals mainly traded at 13680 rmbs per ton. Dealers held firm on price but sell actively. The traders said that downstream corporate had strong enthusiasm in purchasing with a bigger volume comparing to yesterday's. Overall trading condition turned better.

Edited by SHMET
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