LME tin continued to rally looking very strong technically and positioned firmly above 100 moving average. If Tin was suppressed by the traumatised Chinese equity market yesterday, it has shown the real strength today up more than 3% to break above $16000 for the first time since May. Fundamentally Tin is supported by tighter supply due to credit concerns among traders. Cash to 3m widened substantially to 170b on lack of lenders. LME stock continued to fall to 6990mt. Shanghai spot tin were at 110000-112000 rmbs per ton, up 500 from yesterday. Yunheng, Yunxi were quoted at 111500-112000 rmbs per ton, Yunshan and Yunxiang were at 111000 rmbs per ton, Nanshan and Weitai were at 110000 rmbs per ton. The future price rebounded obviously but the supply pressure still impacted the physical market, physical price got little boom. The dealers had strong wills to sell, downstream buyers were not active in purchasing. This morning’s trading were modest, with the ordinary brands traded lower, even at 109500 rmbs per ton.
LME zinc prices made a strong recovery overnight and that came despite another gloomy day for Chinese equities. The move seemed more technically rather than fundamentally driven with a key support zone finally reached that inspired fresh buying in large quantities. That was mainly illustrated by the large volumes seen on Select with 10k lots traded by the London close. However the complex remains very fragile and there is a good chance those gains could be short lived. It would indeed take at least a recovery to $2015 before the trend and the sentiment can potentially change. It seems the mood is not for this yet. Shanghai spot zinc 0# were at 15265-15325 rmbs per ton, up 375 from yesterday, with a back of 80-140 rmbs per ton; 1# zinc were at 15205-15265 rmbs per ton, up 375 from yesterday with a back of 20-80 rmbs per ton. Today, we learned downstream consumptions remained sluggish, trading condition was not good. Some people’s prices were slightly lower than market, in a bid to trade with Shuangyan zinc traded at about 15310 rmbs per ton. The market trading conditions unchanged from yesterday.
Shanghai spot lead were at 13230-13350 rmbs per ton, up 180 from yesterday with a back of 130-250 rmbs per ton. LME lead was at $1704 this morning on the open in London and prices were today again around the same levels as seen during Asian trading hours where it was trading within a tight range and volumes were fair for this session. We saw lead prices bounce back slightly today after global stock markets were to steady and some short cover along with some bargain hunt buying. Lead was to eventually close at $1722.50 on the kerb and the range today was $1700-$1741 with average volumes traded at around 3326 lots. SHFE lead was weak both in supply and demand, it might be bolstered if the surroundings factors were good. Suggest for SHFE 1510, stay on the sidelines for the time being. In domestic physical market, the lead price trend weak, smelters were in heavy mood of reluctant sales and supply was plenty. The trader had strong wills to sell, but the general metal price was weak, downstream purchasing wills were not strong. Therefore, overall trading this morning was modest.
Shanghai spot aluminum were at 12180-12240 rmbs per ton, up 110 rmbs per ton, with a contango of 90-30 rmbs per ton. The quotations in Wuxi were at 12210-12230 rmbs per ton. Aluminium closed around the high of the day of $1665 only a narrow range was seen $1665/1642.50, prices across the metals complex picked up today. News out - Century Aluminum said it will shut its Ravenswood smelter in West Virginia immediately as it had failed to secure competitive power supply amid tough market conditions. Aluminium producers are seeing their profits dwindle due to prices of Aluminium which are currently near six-year lows. LME Stocks were down 8,550 tonnes to 3,462,675 tonnes, while cancelled warrants increased 15,450 tonnes to 1,457,550 tonnes SHFE aluminum rose with volatility. In domestic physical market, despite the aluminum future rebounded from the lowest but recent market sentiment were still weak. The concerns on market outlook would still continue. In addition, the trading wills were not strong, downstream buyers were not many on the market. In overall, the market trends and trading wills did not support the price. This morning, quotations were higher than yesterday, mainly at 12210-12230 rmbs per ton.
Shanghai spot copper were at 39550-39850 rmbs per ton, up 800 with a back of 100-280 rmbs per ton. LME copper rose during the day even though stock markets in China were still weak. There are still thought that the real economy will not be affected too badly by this but it is a risky bet to make. The spread narrowed to 11c for cash to 3m as nearby days tightened. Shanghai futures remained slightly below LME for October ( -$ 15 ) as they remained in backwardation. With the end of month approaching this might have an impact on LME spreads as well. SHFE copper fluctuated higher this morning with the most-traded contract closing to 39000 rmbs. In domestic physical market, the price of copper rose sharply but some people appointed that short term copper price unlikely to break through the top line of current range. Therefore, the market sentiment was mixed today. Moreover, with the supply growing, the hold-firm willingness weakened, and the trading wills were not strong as well. Major quotations of high-quality copper were at 120-230 rmbs pr ton backwardation. The backwardation changed largely with the extent of more than 100 rmbs per ton.
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