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Nickel Import Market Briefing 20140728

Date Jul 28 2014 16:46:31Source:SHMET
Jul.28,2014(SHMET)--

Shanghai electrolytic nickel CIF (B/L) was quoted at premium of 100-120 dollars per ton, Shanghai electrolytic nickel bonded warehouse warrants premium was 50-70 dollars per ton, quotations gradually stabilized. The nickel imports inverted about 9500 rmbs today. Nickel imports inversions seem to further extend, the domestic buyers purchasing interest is weak and the offer is far lower than seller’s expected price. Russian nickel warrants quotes are still holding firmly between 70 to 90 dollars. The B/L was mainly quoted at 110-120 dollars per ton, but rare to see trading at this price. Some buyers said there were some B/L quotations of 110 dollars on the market. Recently, some traders said some Russian nickel warrants were quoted at 50-60 dollars but the market trading volume was quite poor. Some traders believe that nickel premium will continue retreating.

Edited by SHMET

Zinc Import Market Briefing 20140728

Date Jul 28 2014 16:46:17Source:SHMET
Jul.28,2014(SHMET)--

Shanghai zinc CIF (B/L) premium was quoted in 130-140 dollars per ton; Shanghai zinc bonded warehouse warrants was quoted at a premium of 120-140 dollars, retreated slightly. Today, Shanghai zinc main contract against the 3-month LME zinc was in a ratio of 7.20, and LME spot zinc price against 3-month forward zinc is in 3 dollars backwardation. Today, the spot zinc imports inversions were about 1400 rmbs and the forward zinc imports inverted about 1400 rmbs. As the inversions of imports are remaining big, the purchasing willingness is relatively weak. The dealers are reluctant to sell because their purchasing cost is high. Recently in the market, the supply of B/L was not many but the warrants supply was relatively plenty and its quotations also retreated in past two days. Recently, the buyers demand for zinc showed decline and the trading was less active than previously. Therefore, the traded price also appeared pullback sign. Last Friday, LME zinc price once again recorded a new high of this year, lead to that the price gap between LME & SHFE widened to 278 dollars, which is the biggest since February of 2010. It reflected domestic poor demand. Some analysts said the zinc price required consolidation.

Edited by SHMET

Aluminum Import Market Briefing 20140728

Date Jul 28 2014 16:45:59Source:SHMET
Jul.28,2014(SHMET)--

Shanghai aluminum CIF (B/L) premium was 350-370 dollars per ton; Shanghai aluminum bonded warehouse warrants premium was 355-375 dollars per ton, remained stable. Today, Shanghai aluminum the month contract against LME aluminum is a ratio of 7.00. LME spot aluminum price against the 3-month forward aluminum is in a contango of 18 dollars. Today, the spot aluminum imports hang upside down about 3000 rmbs, and the forward aluminum imports inverted about 3200 rmbs. Aluminum import loss is larger because the premium is high. The imported buying of the consumer enterprise were restricted, lead to little turnover. The dealers are not eager to sell due to the problem of LME price structure which encourage holding good. The quotation is too high to be accepted by the buyers. Therefore, the market is in the situation of a price no city. Recently, some warrants holders have stronger will to sell, but the downstream purchasing will is still weak and the trading is not active. 

Edited by SHMET

Copper Import Market Briefing 20140728

Date Jul 28 2014 16:45:44Source:SHMET
Jul.28,2014(SHMET)--

Shanghai electrolytic copper CIF(B/L) premium was quoted at 100-120 dollars per ton; the decline slowed; Shanghai electrolytic copper bonded warehouse warrants premium was quoted at 90-110 dollars per ton, the decline slowed. Shanghai cash copper against LME 3-month copper is a ratio of 7.10. The ratio that Shanghai copper main contract against LME 3-month copper is 7.09. LME cash copper is in a backwardation of 12 dollars against 3m forward price. Today, the spot copper imports hang upside down about 2000 rmbs and the 3m forward copper price of import inverted about 2400 rmbs per ton. The wet processed copper premium is about 90-110 dollars per ton. The ordinary fire processed copper premium is about 105-115 dollars per ton. Chile fire processed copper premium is 110-120 dollars per ton. Today the electrolytic copper imports ratio fell to 7.10, continued to retreat. Currently, the banks strengthened supervision on the companies applying for L/Cs, and the line of credit also reduced further. Meanwhile, the deposit for L/Cs also was increased in general, which increased companies’ cost for issuing letter of credit and weakened the buyer’s purchasing power. For now, the electrolytic copper premium traded at 100 dollars in general. The buyers hoped to buy the dips, but the sellers have less will to sell at lower price. Currently, the price was basically at a stalemate of 100 around. Certainly, this is only for the B/Ls and warehouse receipts which will arrive at the end of July and in the beginning of August. The arrival goods after the middle of August were still at high quotations. The domestic smelters cut the purchasing volume for buy-at-retail copper concentrate, as they expected that TC/RC would rise to 110/11, with Freeport starting to export copper concentrate. In current market, the spot price is at 84-90/8.4-9.

Edited by SHMET

Nickel-SHMET Spot Market Briefing20140728

Date Jul 28 2014 16:45:15Source:SHMET
Jul.28,2014(SHMET)--

LME nickel rose 0.2% and ended at 19200 dollars. Today, Shanghai spot nickel was quoted at 131000-131600 rmbs per ton, up 1100 from the previous session. Jinchuan nickel traded at 131600 rmbs per ton, Russian nickel traded at 131000 rmbs epr ton. In domestic market, the nickel price remained stable rise. The traders’ enthusiasm fell, and the market trading tend to dull. As the nickel price fluctuation extended, the purchasing risk of stainless steel mill also rose accordingly, lead to that domestic 300-stainless steel output growth was limited in the first half of this year. The bonded warehouse stocks still moved out, and ferronickel factory gradually cut production, nickel ore stocks slipped as the same moment. The high-quality inventory can be used for about 2 months. Short term nickel price was under pressure as LME stocks rose, but the downward space is limit.

 

Edited by SHMET
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