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SHMET Spot Market Briefing 20100402-Copper

Date Apr 02 2010 13:35:55Source:SHMET

Copper
Shanghai spot Copper is quoted between RMB 60850 and 61200 per tonne, up RMB 300 per tonne, with trading from 550 to 300 contango. We are in the seasonally stronger production for air conditioners period, and therefore the operation rate of brazing-related mills is continuing to recover. The steady economic environment plus the coming seasonally stronger consumption are likely to boost the copper price evidently.

“ At present, the purchasing enthusiasm from the downstream has been fueled noticeably, so we got many enquiries today. Most people think the copper price will extend gains in April, as the contango has started to narrow. We have sold over 600 tonnes of cargoes.” A trader said to SHMET.

“ The transacted prices are around 60050 yuan per tonne, and the sales is moderate. I get the feeling that Shanghai copper is leading LME price, as SHFE Copper will not change the strong tone in the short term. However the metal is expected to have further consolidation. If Shanghai Copper benchmark contract breaks through 63500 yuan in the coming days, the upside space has been opened as I expected.” Another trader told SHMET.

SHMET Spot Market Briefing 20100401-Nickel

Date Apr 01 2010 13:41:01Source:SHMET

Nickel
China’s spot Nickel is quoted from RMB 169000 to 170000 per tonne, up RMB 1000. Jinchuan Nickel is quoted at RMB 170000 per tonne, while Import Nickel is quoted at RMB 169000 per tonne. Domestic prices have increased for two consecutive days affected by the rising LME during the Asian hours. The trading was rather mixed in the morning session, as the downstreams worries over the potential increasing nickel prices causing further stockpiling sentiment. However the continuing rising on the LME has made traders have bullish outlook over coming days.

“ We quoted Jinchuan Nickel at 170000 yuan per tonne today, and the sales is not bad. LME Nickel is powering ahead in these two days, so the downstreams think that the domestic spot price will pick up with it, resulting in further stockpiling.” A nickel trader in Shanghai said to SHMET.

“ Our sales today is not very satisfactory, attributing to quotes in other places lower by 1000 yuan than Shanghai. There has been fewer buying from the downstream. Furthermore, some buyers who are in no hurry to use materials are more willing to booking futures.” Another local trader told SHMET.

SHMET Spot Market Briefing 20100401-Tin

Date Apr 01 2010 13:40:19Source:SHMET

Tin
China’s spot Tin is quoted between RMB 140000 and 141500 per tonne, up RMB 1500. Yunnan Tin and Yunshan Tin are quoted at RMB 141500 per tonne, while Nanshan and Kaiyuan Tin are quoted at RMB 140000 per tonne. Affected by overnight rising LME and tightening domestic spot supply, the quotes from mills and traders were higher. The pick up in traders’ selling sentiment combining with the buying being limited by the rising prices has caused an inactive morning trading.

“ We quoted 0#Tin at 142000 yuan per tonne today, but there is still no transaction taking place in spite of many enquiries, mainly due to higher prices.” A trader in Shanghai said to SHMET.

“ We quoted Yunshan Tin at 141000 yuan. The transaction is not satisfactory despite many enquiries coming. We just sold 2 or 3 tonnages.” Another trader told SHMET.

SHMET Spot Market Briefing 20100401-Zinc

Date Apr 01 2010 13:39:49Source:SHMET

Zinc
Shanghai 0#Zinc is quoted between RMB 18050 and 18150 per tonne , down RMB 100 per tonne, with trading from RMB 830 to 730 contango; 1#Zinc is quoted between RMB 18000 and 18100 per tonne , down RMB 100 per tonne, with trading from RMB 880 to 780 contango. In terms of the Zinc market these days, it's obviously to see that the trend is stronger in the foreign market and weaker in the domestic market. The soft SHFE price as well as the spot price dampened the confidence in the Zinc market. It may bring the pressure to the Zinc price in the short term.

" Recently, the domestic SHFE market is not good, as the spot price is weak, either. The downstreams were cautious to purchase the cargos, so the sales is moderate." Some Zinc trader said to SHMET in the morning.

" We have sold over 200 tonnes of the goods, as the trading volume was moderate. The mills are not very active, so we only can wait and see the condition next month." Another large trader said to SHMET.

SHMET Spot Market Briefing 20100401-Lead

Date Apr 01 2010 13:39:20Source:SHMET

Lead
China’s spot Lead is quoted from RMB 15500 to 15700 per tonne, flat. Although LME Lead fall overnight, the domestic spot market is always lagging behind with staying at the same level as yesterday. With large stocks, there are little upside momentum seen. The transaction was moderate, but still thinner on-year.

“ We sold 60 tonnage of Yunnan Lead. Drought in the southwest area made little impact on Lead prices. With large stocks, the fundamentals of market were in a pessimistic tone. ” A trader said to SHMET.

“ The volume of transaction was low and prices are unchanged. We hold onto a bullish outlook for market. As the market hadn’t fully recovered, we were also cautious to buy cargoes. ” Another trader said to SHMET.