SHMET Spot Market Briefing 20100420-Nickel

Date Apr 20 2010 14:17:03Source:SHMET

China’s spot Nickel is quoted from RMB 185000 to 186000 per tonne, up RMB 1000. Jinchuan Nickel is quoted at RMB 186000 per tonne, while Import Nickel is quoted around RMB 185000 per tonne. Since LME Nickel rebounded overnight, the market sentiment is turning steady which made Nickel up slightly today. Downstream buyers are favorable to buy cargoes on their demand. The transaction showed more active in the AM session.

“ Jinchuan Nickel was quoted at RMB 186000 per tonne. With large volume, we got more enquires today. Although the momentum is not clear, the arbitrage from investors is still in action and the demand of Nikcel is stronger. ” A trader said to SHMET.

“ The spot market was in a mixed tone. Some traders tend to sell cargoes at lower price in order to recoup cash, while other traders hold onto a bullish outlook for the market. The total volume of transaction was pretty good. ” Another trader said to SHMET.

SHMET Spot Market Briefing 20100420-Tin

Date Apr 20 2010 14:16:39Source:SHMET

China’s spot Tin is quoted between RMB 145000 and 146500 per tonne, flat. Yunnan Tin is quoted around RMB 146500 per tonne, while other products are quoted at RMB 145000 per tonne. With steady momentum on the LME, traders sold cargoes in normal, while downstream buyers just bought cargoes according to their demand. However there is still very much a wait-and-wacth scenario. The transaction was pretty thin in the AM session.

“ There are no deals completed in the AM session and we got less enquires. As the international situation is in a mixed tone, most consumers adopt a look-on attitude for the market. ” A trader said to SHMET.

“ There is no obvious change on the LME and Kerb. The transaction of domestic market was moderate. We just sold few lower-graded products today. The look-on sentiment from downstream buyers was still strong.” Another trader said to SHMET.

SHMET Spot Market Briefing 20100420-Zinc

Date Apr 20 2010 14:16:12Source:SHMET

Shanghai 0#Zinc is quoted between RMB 18100 and 18200 per tonne, flat, with trading from RMB 830 to 730 contango; 1#Zinc is quoted between RMB 18050 and 18150 per tonne, flat, with trading from RMB 880 to 780 contango. The SHFE copper today has bounced back from the bottom in the morning, but the SHFE Zinc was tired to go up followed the SHFE copper and consolidated in certain level, which can be seen that the fundamentals of Zinc wasn't nice. Nowadays, downstreams were willing to wait and see owing to the large magnitude of decline, and the sales have been decreased by a wide margin.

" We think the upward trend of Zinc will not be changed in the longer term, so we are willing to store goods and wait for suitable time." Some Zinc trader said to SHMET.

" The spot Zinc price is at a very low level now, but there are not many people come to buy the goods. In the market, some downstreams were purchasing the goods at low level, and the others were hesitated and took wait-and-see attitude." Another Zinc trader said to SHMET.

SHMET Spot Market Briefing 20100420-Lead

Date Apr 20 2010 14:15:28Source:SHMET

China spot lead is quoted from RMB 15500 to 15700 per tonne, down RMB 50. China’s lead prices have fallen with the continued losses on the LME, while the consumption is also lagging behind and we can see evident look-on attitude. GS issue together with new measures on property market has great effect on prices. Against this backdrop, lead prices are likely to have further consolidations in the short term.

“ We think that market will have some volatilities in these days but the longer momentum is still bullish. We prefer to be cautious when we take in cargoes, because we want to avoid the risk of losses after prices drop.” A spot trader said to SHMET.

“ In these two days, buying sentiment from the downstream once again turns to be weak. The sharp falls are unexpected, so that many traders are staying sidelines of the market. Sales are not good.” Another trader told SHMET.

SHMET Spot Market Briefing 20100420-Aluminum

Date Apr 20 2010 14:14:48Source:SHMET

China’s spot Aluminum is quoted from RMB 16020 and 16060 per tonne, dropping RMB 20, with trading from RMB 260 to 220 contango. In current, Chinese aluminum enterprises have encountered with American investigation, and companies have been accused of RMB 3.65 billion cases. There are over 700 aluminum-related enterprises in China, and more than 100 companies export products to U.S. Once these companies are taxed on, the export of aluminum products are certainly to decrease, and therefore aluminum demand will fall.

“ It’s evident that SHFE Aluminum is falling now, as MA systems are showing bearish signs. Though the metal has recovered, prices are expected to drop in the short term. We are not bullish toward near-future market.” A Shanghai-based trader told SHMET.

“ Our transacted prices are at 16030 yuan per tonne, and today’s sales are slightly better. Some mills wanted to buy the dips. In light of picking up demand as well as supportive spot prices, we are not panic.” Another spot trader said to SHMET.

Wuxi price is quoted between RMB 16020 and 16050 per tonne.