LME nickel overnight continued to consolidate below $13,000, eventualy closed at 12830 dollars, up 1.2%. Having broken above the important 50 day moving average early in the month, triggering technical buying, it seems that nickel will close the month below it again. Nickel was a victim of the mid-month metals sell-off and looks set to spend time at these lower numbers until we see some solid, positive macro data to improve sentiment. The best we can say for now is that it is holding its ground in the face of continued warehouse stock increases. SHFE nickel main contract today moved up after opening, consolidated for a period before sharply down with volatility, the price picked up around 100874 rmbs. Shanghai spot nickel were at 96500-101500 rmbs per ton, up 1500 from yesterday. The supply of Jinchuan nickel were still tight lead to a firm quotations with high backwardation. Jinchuan nickel traded at 101000-101500 rmbs per ton, Russian supply were comparably plenty and its price were better for downstream buyers it traded at 96200-96300 rmbs per ton. However, overall trading were average today, major volume were from traders. Downstream still remained purchasing on demand.
LME tin weakened during the day following through on the recent trend but countered by very good consumer buying visible deep into 2016 as prices seem quite attractive for the tin plating industry. It eventually ended at 15600 dollars, up 0.7%. Expect the price was set to continue testing 15300 dollars support. Short term tin remained weakness due to the pressure from strong dollar. Shanghai keeps its distance showing a premium to LME for July of $ 450. SHFE tin main contract fluctuated higher this morning we saw obvious pressure near the 5-day MA. The price sharply down after hitting the highest of 11427 rmbs per ton with a lowest were seen at 116251 rmbs per ton this morning. Shanghai spot tin were at 115000-117500 rmbs per ton, down 250 rmbs. Yunxi tin factory gate were at 120000 rmbs per ton, Traders offered 117000-118000 rmbs per otn, Yunheng tin were at 116500-117000 rmbs per ton. Yunxiang, Yunshan, Yunxiang and Tianti were at 115800-116500 rmbs per ton, Nanshan and Weitai were at 115000-115800 rmbs per ton. We learned from the traders that circulating goods were a lot on the market, but downstream buying appetite were not good and most people chose to be on the sidelines with purchasing on demand only. The activity from traders were relatively good but mainly were bargain hunt with a major trading range of 114500-116500 rmbs per ton. The low-cost brands were more popular in the market, compared with Yunxi, Yunheng ect. Most trading volume were from those ordinary brands.
Wednesday was a bit of a revival of the strong period between mid-March and beginning of May as prices jumped by over $35 in just over 2 hours in early afternoon. However some of the gains were erased during the late Kerb as obviously the negative sentiment remains. Still today’s action could mean we finally found a decent support zone. That will of course require some further testing before it can get confirmed. Eventualy LME 3m zinc ended at 2186 dollars, up 0.4%. Shanghai spot zinc 0# were at 16575-16635 rmbsper ton, up 90 with a contango of 155-95 rmbs per ton; 1# zinc were at 16515-16575 rmbs per ton, up90 with a contango of 215-155 rmbs per ton. We learned from the traders that upstream selling wills were strong but downstream continued to be on the sidelines. Only some brokers were comparably active in purchasing. Overall trading conditions were better slightly but the sidelines sentiment still restricted the trading. Most volume were from traders who bullish the zinc outlook.
Shanghai spot lead were at 13660-13780 rmbs per ton,up 20 from yeserday with a back of 290-410 rmbs per ton. Overnight LME lead was to continue its mixed form throughout the day, in the morning it fell lower to see the low of the day at 1930 but was to bounce back slightly in the afternoon as the dollar was to slide. With the Chinese economic slowdown still at the forefront of investors’ minds the market today was a little subdued and they were too proceeded with caution. It eventually closed at 1953 dollars, up 3. Volume down 1164 to 1957 lots, holdings down 1240 to 14929 lots and inventory down 2375 to 158025 tons. SHFE lead continued rally this morning with interim consolidation likely to complete. Macro policy might provide some support the price. Suggest for SHFE 1507 contract probe longs and protect at/below 13200 rmbs per ton. In domestic physical market, the branded lead were still shortfalls with very less quotations in the market. Most brands had already started advancing-sales. Downstream buying appetite weakened further at month-end with basically on demand purchasing. Overall volume were poor today.
Shanghai spot aluminum were at 12890-12950 rmbs per ton, down50 fromyesterday, with a contango at 185-125 rmbs per ton. The quotations in Wuxi were at 12900-12910 rmbs per ton. LME 3m aluminum hit the lowest of 1731 dollars, eventually down 0.8% at 1738 dollars. The poor technical close suggests that further selling and lower prices are likely in the next days. News that EGA would be expanding production at its Dubai smelter did not help sentiment either and comes on top of the flow of refined metal coming from China. The dollar continues to move higher and this is also acting as a negative for metal prices of course. Short sellers have the benefit again of a large contango, something that at least partly discouraged them at times recently. SHFE aluminum continued to be under pressure this morning. Indomestic physical market recent price were in weakness and consolidation, with the physical price had being under pressure for some days, the reluctant selling wills got strong which lead to a strengthening anxiety in short term and the cheaply selling action became fewer. Downstream consumption were weak and the bearish views were held generaly, thus their purchasing appeite were quite less. This morning, major trading price were at 12910-12930 rmbs per ton.
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