electrolytic nickel CIF (B/L) was quoted at premium of 100-120 dollars per
ton, Shanghai electrolytic nickel bonded warehouse warrants premium
was 60-80 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.
The market trading is quite poor. 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
there were nickel warrants traded at 60 dollars but the market trading volume
was quite poor.
CIF (B/L) premium was quoted in 135-145 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 7.21, and LME spot zinc price against 3-month forward
zinc is at 5 dollars contango. Today, the spot zinc imports inversions were
about 1350 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.
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 6.98. LME spot aluminum
price against the 3-month forward aluminum is in a contango of 17 dollars.
Today, the spot aluminum imports hang upside down about 3100 rmbs, and the forward
aluminum imports inverted about 3300 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. 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. Some aluminum B/L will arrive
in near term.
Shanghai electrolytic copper
CIF(B/L) premium was quoted at 120-135 dollars per ton; continue retreating; Shanghai electrolytic
copper bonded warehouse warrants premium was quoted at 95-115 dollars per ton, returned
continuously. 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 7.07.
LME cash copper is in a backwardation of 4 dollars against 3m forward price.
Today, the spot copper imports hang upside down about 2200 rmbs and the 3m
forward copper price of import inverted about 2800 rmbs per ton. The wet processed
copper premium is about 95-115 dollars per ton. The ordinary fire processed
copper premium is about 110-120 dollars per ton. Chile fire processed copper premium
is 120-135 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. It is learned from the traders, the downstream demand is
quite poor, some traders have willingness in buying the dips, but the current
price is too high to buy a lot. Therefore, they are waiting for lower prices.
The trading in physical market is very light and there is not buyers act. So,
the traders said the key reason is not the price but the poor demand of buyers.
LME nickel closed at 18825 dollars, up 0.9%.
Today, Shanghai spot nickel was quoted at 128800-129500 rmbs per ton, up 2400
from yesterday. Jinchuan nickel traded at 129500 rmbs per ton and Russian nickel
traded at 128800 rmbs per ton. In domestic market, the spot nickel rebounded
from the bottom sharply, with a continuing light turnover. Last Friday, there
is a news about that Chinese nickel ore imports avoid the ban, which is not
real. The nickel ore exported from Indonesia is actually iron ore-processed
course powder. Moreover, this company had paid 20% export tax for this cargo.
In this case, we believe the supply may tighten and the price will stick have
driven energy if the supply of Indonesia do not change significantly. However,
short term price will remain weakness and fluctuation until the consumption
shows obvious improve.
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