With SHFE now having accepted Norilsk full plate cathodes as good delivery without a discount the market dropped during Asian and early London hours but then recovered later as stainless mills began to fix purchases. At times the SHFE market was down toits 5% daily limit but recovered later. In Asia there is still demand for full plate in warehouse but most stock now has been sold. Some of the metal going into China will probably not come back to the world market due to the Chinese tariff structure. SHFE nickel sharp decline were digested through correction and consolidation. In domestic physical market, the spot nickel were quoted at 87100-88700 rmbs per ton, up 3000. Jinchuan nickel traded at 88700 rmbs per ton, Russian nickel traded at 87100 rmbs per ton. As market expect the price likely to rise further today, the buyers and sellers both remained cautious. Some people took advantage of the lower price, today’s trading were slightly better than yesterday’s.
Tin was closing at 6-year lows today as the great metals sell off continues today. We believe this stand off is being influenced by weak industrial demand in Asia, particularly in China, modest demand and worries over Greece in Europe, and a strong dollar environment. SHFE tin 1509 contract regained some lost due to the buying on dips support and today’s move likely to remain ranging. Shangai spot tin were quoted at 112000-114000 rmbs per ton, unchanged from yesterday. The market sentiment were mixed, some traders quoted 113500 rmbs per ton for Yunxi tin, but we also heard quotations at 114500 rmbs per ton. Yunheng factory gate lowered to 113000 rmbs per ton. Nanshan and Weitai were quoted lower to 111500 rmbs per ton. In domestic physical makret, the downstream remained purchasing on demand, brokers focus on spread to look for orppotunity. However, the supply were not many and the sidelines sentiment still dominate the partipants. Overall trading were modest.
Without any breaking news from Greece really which is the main concern obviously prices slowly built back some gains and actually managed a close back above $2000. After equities, the pressure finally reached commodities although the good buying interest that this triggered limited the damage on the charts. Turnover was strong as a result with no less than 17,000 traded on Select, same as copper. LME three-month zinc closed at 2000 dollars, down 0.9%. Shanghai spot zinc 0# were at 15210-15270 rmbs per ton, down 150 with trading from level to 60b rmbs per ton; 1# zinc were at 15150-15210 rmbs per ton, down 150 with trading from 60c to level. Today, the smelters remained normal sales, some domestic physical zinc were a lot in the warehouse, stockiest were selling activley. Shuangyan and ordinary 0# traded slightly better. Some investors chose to be on the sidelines for the time being. Overall trading were light.
Shanghai spot lead were at 13120-13240 rmbs per ton, down 80 with a back of 350-470 rmbs per ton. Prices were pushed even further lower at the start of the day as the Greek debt crisis still weighs on market sentiment and investors were treadingcarefully with the amount of uncertainty surrounding the issue. By the early afternoon prices managed to stabilize again and bounce back a fraction probably due to some short covering. SHFE lead still got effect support from tight supply. However current market sentiment tended to bearish. The price were anticipated to volatile around the previous lowest. Suggest for SHFE 1508 contract remain on the sidelines continuously. In domestic physical market, the price of lead were weak. The price of future were low and the hedging supply flew into the market, eased the tight supply situation. However, downstream were still under fund pressure, purchasing strength were less strong.
Shanghai spot aluminum were quoted at 12420-12480 rmbs per ton, down 60 with a contango of 85-25 rmbs per ton. The quotations in Wuxi were at 12440 rmbs per ton. LME aluminium was much harder to shake as the correction seen across the complex was very much muted there. Actually the late rally observed in the kerb felt more robust and the metal was not far off from posting a new intraday high. When looking at the charts the move is much more tempered for aluminium which may explain why fund activity is not so active. A fresh yearly low could change it all. SHFE aluminum continued to be under pressure. In domestic physical market, recent bearish pattern would remained and the sentiment seemed to be cautious. Moreover, some participants clearly feared price down. The sales of dealers obviously declined as some large traders still held firm. Downstream situation did not improved. This morning’s trading were moderate. Major quotations were at 12420-12470 rmbs per ton.
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