Comments

Nickel - SHMET Import Market Briefing 20170925

Date Sep 25 2017 17:37:30Source:SHMET

With regards to NI FP, offers in Shanghai bonded zone keep standing at the range of $230-$250 ,and so does CIF delivery. The SHFE Spot/LME 3M arb for Russian NI was stable, at 8.10 and that for 3M SHFE/LME at 7.98, equated to a loss of RMB430/mt in spot and a profit of RMB595/mt 3M forward.

Nickel price continues to be weak, leading to a sustained narrowing in the profits and losses of imports. There is no better supply should be stimulated and the premium remains unchanged.

 

Report by SHMET

Zinc - SHMET Import Market Briefing 20170925

Date Sep 25 2017 17:37:14Source:SHMET

Zinc Premiums in Shanghai bonded and CIF shanghai saw no change, at $185-$195/mt and $180-$190/mt respectively. Yesterday LME C-3m valued at $46B while the SHFE active/LME 3M arb also retreated to around 8.27, the spot import loss to RMB127/mt and expanding loss slightly in forward market, around RMB770/mt lost. Custom duty exempt brands, Australian and Korean, still generate quite a gain of RMB127/mt in spot import market, but may lose RMB516/mt in forward import.

There is no increase in LME zinc stocks last Friday. Due to the strong price of domestic zinc ingot premium and the pre-holiday effects, Downstream enterprises currently have less willing to purchase, with market transactions being light. Sellers insist on selling with a high premium, leading to few market transactions.

Edited by SHMET

Aluminum - SHMET Import Market Briefing 20170925

Date Sep 25 2017 17:36:59Source:SHMET

Traders reported that spot premiums CIF shanghai remained at level $95-$115 as usual, so did the physical warrants. LME C-3m valued edged to $21.5C. SHFE Spot/LME 3M arb flattened out at 7.61, suggesting importing may lose around RMB1147/mt in spot market and RMB1021/mt in forward market.

Aluminum price had a sharp rise due to the money chasing and the expectations for supply-side reform, but as far as we are concerned, the demand and supply of aluminum are in fact balanced both domestically and internationally. Failing to open the import window, there is a sustained downturn in the transaction of the import market, without seeing obvious increase in the trading volumes. Purchasers are expected to mainly step aside for the time being.

Edited by SHMET

Copper - SHMET Import Market Briefing 20170925

Date Sep 25 2017 17:36:43Source:SHMET

Premiums for CIF Shanghai stood at $50-$65 while that for shanghai bonded warehouse flatted at $65-$72, a continuing component of previous re-stabilization. LME C-3m valued was $41.25C. SHFE Spot/LME 3M arb stayed steadily at around 7.84, with an import gain of RMB107/mt, whilst 3M SHFE/LME arb may lose RMB577/mt, with ratio 7.78.

There was a sharp drop in SHFE stocks last week, reflecting a good pre-holiday consumption. Meanwhile, the small number of imports of copper hasn’t had any impact on the domestic market. The arbitrage has been rising recently because of the falling RMB exchange rates. With an expanded contango, Traders step aside for the time being and await the sales after the holiday. The premium range is stable, with the warrant maintaining above US$60. 

Report by SHMET

Nickel - SHMET Import Market Briefing 20170922

Date Sep 22 2017 17:16:10Source:SHMET

With regards to NI FP, offers in Shanghai bonded zone keep standing at the range of $230-$250 ,and so does CIF delivery. The SHFE Spot/LME 3M arb for Russian NI was stable, at 8.03 and that for 3M SHFE/LME at 7.96, equated to a loss of RMB922/mt in spot and a profit of RMB725/mt 3M forward.

Nickel price continues to be weak. Stainless steel price fell slightly and the stocks increased.  Imports of stainless steel put pressure on domestic market, where no better supply should be stimulated and the premium remains unchanged.

Report by SHMET
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