SHMET Spot Market Briefing 20100513-Tin

Date May 13 2010 14:34:19Source:SHMET

China’s spot Tin is quoted from RMB 143000 to 144500 per tonne, flat. Average-grade 1# Yunnan Tin is quoted at RMB 144000 per tonne and low-lead 1# Yunnan Tin at RMB 144500 per tonne, while Kaiyuan Tin and Nanshan Tin are both quoted at RMB 143000 per tonne. There are not many higher-grade products circulating on the spot market at present with some average products in the market, but the volume is limited. However the real demand is rather thin with market in quiet conditions now.

“ Tin products are selling around 143000 yuan per tonne, but they are all average products and sold over 10 tonnages, as same as yesterday. We still have some stocks now but not large.” A Shanghai-based trader told SHMET.

“ These two days most deals were completed between 144000 and 144500 yuan per tonne, low volume. Because our stocks are not high, and we are always delivering cargoes to some mills.” A tin smelter said to SHMET.

SHMET Spot Market Briefing 20100513-Zinc

Date May 13 2010 14:33:54Source:SHMET

Shanghai 0#Zinc is quoted between RMB 16450 and 16550 per tonne, up RMB 100 per tonne, with trading from RMB 290 to 190 contango; 1#Zinc is quoted between RMB 16400 and 16500 per tonne, up RMB 100 per tonne, with trading from RMB 340 to 240 contango. SHFE Zinc rebounded technologically today. Before the delivery day, it needs to wait and see whether the market can change the poor trend. The spot sales is moderate, the downstreams are unwilling to purchase the goods.

“ Because there was too many falls earlier, the insiders are not very confident. The upward trend can’t recover the confidence of market, and it all depends on the near-future market.” Some Zinc trader said to SHMET.

“ The goods is sufficient , as the oversupplied situation is very obvious. The sales is poor on half a month,and more and more downstreams are waiting for the near-future market. We have sold 0#Zinc at RMB 16450 per tonne. The sales is moderate.” Another Zinc trader said to SHMET.

SHMET Spot Market Briefing 20100513-Lead

Date May 13 2010 14:33:27Source:SHMET

China’s spot Lead is quoted from RMB 15250 to 15450 per tonne, flat. The LME market is keeping in the consolidating trend, as the domestic spot lead is stable. There are more and more downstreams seeming to be bearish. They only purchased the goods when they needed. The market is thin.

“ The sales in the traditional strong season shouldn’t be so weak. Now the insiders are fragile and negative. Many factories who have enough goods are all unwilling to purchase the cargoes, so the sales is very poor.” Some lead trader said to SHMET.

 “ The market is keeping weak, which is bad for both traders and downstreams. On one hand, the lower price has damaged our profits; On the other hand, it’s easily to trigger the panic mood in the market.” Another trader said to SHMET.

SHMET Spot Market Briefing 20100513-Aluminum

Date May 13 2010 14:33:00Source:SHMET

China’s spot Aluminum is quoted from RMB 15290 and 15330 per tonne, decreasing RMB 20 per tonne, with trading from RMB 50 to 10 contango. Despite that the spot Aluminum price is lower than the cost, the production capacity won’t be closed and the supplied volume won’t be decreased in the short term owing to the particularity of the producing technology. So it needs further process to support the Aluminum price.

“ SHFE Aluminum should keep the consolidation trend in the short term. Nowadays, the dollars’ consolidation trend was short-lived, so the metal prices can be stable. But the upper MA system is generally putting the pressure to the metals, so we are also having negative attitude.” An Aluminum trader said to SHMET.

“ Today we have sold the goods at RMB 15310 per tonne, the sales is still thin. It is obviously that the real estate adjusted policy put much pressure to the sales of Aluminum, however, the production is going up, so there are not much good news to support SHFE Aluminum.” Another spot trader said to SHMET.

SHMET Spot Market Briefing 20100513-Copper

Date May 13 2010 14:32:34Source:SHMET

Shanghai spot Copper is quoted between RMB 56200 and 56450 per tonne, flat, with trading from flat to 150 backwardation per tonne. SHFE market is still weaker. Evidently, domestic copper futures are usually following the downside trend but ignoring the uptrend. The supply is sufficient in the spot market, and traders are willing to sell goods, but the demand is lagging behind. Downstreams are all having wait-and-see attitude towards to the market.

“ SHFE copper has not got much room for rebound. It will be suffered by the pressure of 10-days line. There are many people have negative attitude toward the near-future market. We think the copper price won’t go down in the short term. We consider it as a consolidation phase at sometime.” Some trader said to SHMET.

“ We have sold the goods at about RMB 56400 for 800 tonne. The downstreams’ demand was weaker obviously, but they are unwilling to purchase the goods owing to the copper price at present.” Another trader said to SHMET.