SHMET Spot Market Briefing 20100201-Zinc

Date Feb 01 2010 14:05:23Source:SHMET

Shanghai’s spot 1#Zinc products are quoted from RMB 16800 to 16900 per tonne, decrease RMB 700 per tonne, with trading from RMB 360 to 260 contango. 0#Zinc products are quoted between RMB 16850 and 16950 per tonne, dip RMB 700, and the contango was between RMB 310 and 210. Today’s SHFE Zinc continued to move lower after some interim rallies were seen earlier. Further losses today made people uncertain about the market following the sharp falls seen in the preceding two days.

“The 17000 level offered some support initially, while the contango narrowed to 400 yuan after the level had been broke down. Very few people can predict the lead prices and the market remains to be seen where it stops.” A trading source told SHMET.

“The sentiment was dampened after 0#Zinc broke below 17000 yuan. Most people is bearish toward the near-future market, while consumers begin to wait and see. Mainly circulating cargoes in the market are traders’ stocks, whilst producers’ selling sentiment is weaker.” Another trader told SHMET. The sharply falls in prices have affected the transactions.

SHMET Spot Market Briefing 20100201-Lead

Date Feb 01 2010 14:04:40Source:SHMET

Shanghai’s spot Lead products are quoted from RMB 15000 to 15300 per tonne, down RMB 50. Sharply falls recently contribute to the expectation of the metal in the following sessions has been diverged.

“We would not sell the products of Yunnan Lead below 15200 last week. So far today, the prices have been in over-downside. We feel that 15000 level is the bottom and hence we will not sell at the moment.” A lead trader in the spot market said to SHMET.

“The average-grade products are around 15000 yuan however, whether the metal can continue at this level is unclear. Chinese prices are mainly driven by London performance. The prices plunged these days, causing the spread between higher-grade products and lower-grade ones narrowed. We just sold over 10 tonnages in the mixed market.” Another trader told SHMET.

SHMET Spot Market Briefing 20100201-Aluminum

Date Feb 01 2010 14:03:59Source:SHMET

China’s spot aluminum is quoted between RMB 15630 and 15750 per tonne, drop RMB 250, and trade from RMB 150 to 30 contango. The slump in aluminum prices didn’t trigger more buying with negative sentiment toward the market. Most processing enterprises chose to wait and see heading into following days. It is impossible to see a reversal in recent trend as the Chinese New Year approaches.

“The falls in prices don’t affect consumers’ sentiment strongly, while the sales is still poor. Even if the prices lost further, the sales would be more sluggish. A vicious circle will be formed.” A trader in Shanghai told SHMET.

“After all the global economic recovery is still on track, the demand will get improved. The recent negative performance can not represent the bullish market has been changed. Maybe the business climate will improve after the Chinese New Year.” Another local trader said to SHMET.

Wuxi prices are quoted between RMB 15630 and 15690 per tonne, lower marginally than Shanghai. 

SHMET Spot Market Briefing 20100201-Copper

Date Feb 01 2010 14:03:11Source:SHMET

Shanghai spot copper is quoted between RMB 53800 and 54100 per tonne, fall by RMB 2550 per tonne, with trading in the range of 50 and 120 backwardation. The transactions were moderate. The copper had a pull back with breaking down through key support at 55000 yuan. In terms of economic recovery, the recent falls in prices are seen as correcting from the previous upside. We are still bullish into the following sessions.

“We quote Dajiang-B copper at 50 backwardation. Most people are cautions about the metal, while the buying sentiment is weak.” A trader told SHMET.

“The copper prices have dropped for consecutive days not seen for a long time. The buying sentiment was positive in the preceding two days, but a large fall in the morning gave sentiment a little wobble. Some companies began to stay sidelines of the market because they expect a bearish outlook.” Another trader told SHMET.

SHMET Spot Market Briefing 20100129-Nickel

Date Jan 29 2010 14:01:13Source:SHMET

China’s spot nickel is quoted from RMB 140000 to 141000 per tonne today, up RMB 1000. Influenced by overnight a rise on the LME, Chinese domestic prices made some gains. Trading so far today has seen fewer enquiries and transactions. The stand-by mood was caused by limit circulating fund from the downstream and uncertainty over the direction into following days. Meanwhile the stocks from traders are at lower levels, contributing to sellers holding tight. The broad transaction was quiet during AM session.

“I get feeling it’s difficult to offer prices recently, as the falls on the LME take little effect on domestic prices. Even LME Nickel eventually rose last night, it was still not able to support Chinese prices. Most traders are waiting for Jinchuan Group changing its prices. Maybe when Jinchuan Group changes prices, domestic prices will rise again and subsequently the selling sentiment from traders will improve. In addition, our lower-grade products are at a lower level and if we sell them at moment, we will get low earnings. All in all, we don’t want to make any offers today.” A trader in Shanghai told SHMET.

“We got few enquiries and transactions in the morning. Jinchuan Nickel products were sold for 6 tonnes with price at 141000 yuan per tonne, while Import Nickel was quoted at 140000 yuan per tonne and no dealings are taking place. In my view, the domestic weak fundamentals and soften prices dampened the market sentiment. The negative business will last for some time.” Another local trader told SHMET.