SHMET Spot Market Briefing 20100527-Zinc

Date May 27 2010 14:20:11Source:SHMET

Shanghai 0#Zinc is quoted between RMB 15250 and 15350 per tonne, down RMB 200 per tonne, with trading from RMB 405 to 305 contango; 1#Zinc is quoted between RMB 15200 and 15300 per tonne, down RMB 200 per tonne, with trading from RMB 455 to 355 contango. Good macroeconomic data and continuous euro zone debt crisis make near-future market mixed, and the attitude is divergent on the market. The sales is always poorer. Many factories came to purchase at a lower price today, but the overall condition is still moderate.

“ According to the trend at present, I think the zinc price is difficult to rise or drop. There is not much room for it to go higher or go lower. We are all giving attention to the changeable trend, so the sales is not very good.” Some zinc trader said to SHMET.

“ We have sold fewer than 200 tonnes of zinc at RMB 15280 per tonne today. The consumption from downstream consumers is moderate, and most people are bearish to the neat-future market, what will hinder the purchasing sentiment and the sales will become poorer.” Another zinc trader said to SHMET.

SHMET Spot Market Briefing 20100527-Lead

Date May 27 2010 14:19:39Source:SHMET

China's spot Lead is quoted from RMB 14550 to 14750 per tonne, down RMB 100 per tonne. Euro zone debt crisis make insiders worry about the prospect of financial industry, but under the good news about American macroeconomic data and nice stock market yesterday, LME lead has stopped dropping and has slightly gone higher at the close. On the spot market, the consumption was better than before, but the overall sales is moderate.

“ We have mostly sold Jinsha Lead at RMB 14650 per tonne today. The sales is stable in these two days. Our trading volume is almost the same as everyday.” Some lead trader said to SHMET.

“ We are selling lower-grade lead products now. On account of the cost factors, downstream consumers are inclined to purchase cheaper lead. It is relatively hard to sell higher-grade lead. We have sold more than 160 tonnes of goods. It’s moderate.” Another lead trader said to SHMET.

SHMET Spot Market Briefing 20100527-Aluminum

Date May 27 2010 14:17:39Source:SHMET

China’s spot Aluminum is quoted from RMB 14840 and 14880 per tonne, losing RMB 50 per tonne, with trading from RMB 40 contango to flat. LME aluminum continued to fall after it had risen for two consecutive days. Generally speaking, aluminum price was divergent at 2000 dollars. Owing to uncertainty over euro zone, the price should be the sideline in the short term.

“ Spot aluminum price is consolidating around RMB 15000 per tonne in these days, but in our opinion, it’s difficult to slide below RMB 14600 per tonne, otherwise, many producers will get a loss. Aluminum price should consolidate at a lower level to wait for the prosperous market at present.” An aluminum trader said to SHMET.

“ We have mainly sold the goods at RMB 14850 per tonne. The sale condition is moderate today, as there are not many downstream consumers come to inquire price. There are many factories waiting for the falls of aluminum price again.” Another spot trader said to SHMET.

SHMET Spot Market Briefing 20100527-Copper

Date May 27 2010 14:15:51Source:SHMET

China’s spot copper is quoted between RMB 54550 and 55000 per tonne, down RMB 150, with trading from RMB 50 to 150 backwardation. Since Euro debts issue is still under the cloudy shadow and copper is about to enter the seasonal weak period, the demand will be further soft. It is hard to change the over-supply situation which will pressure the copper price in the future.

“ Copper was still in a weak tone, obviously suppressed by the 10 day Moving Average. Market participants hold on a bearish outlook for the short term. Most traders prefer to short-term investment for the moment. The transaction was fragile. ” A trader said to SHMET.

“ The market was depressed by the stronger look-on attitude from downstream consumers. Copper products were mainly completed around RMB 54750 per tonne without sufficient stocks. We would replenish some cargoes if copper price broke through to the dip. Copper would consolidate between RMB 53000 and 56000 before fresh news emerges. ” Another trader said to SHMET.

SHMET Spot Market Briefing 20100526-Nickel

Date May 26 2010 15:09:01Source:SHMET

China’s spot nickel is quoted from RMB 170000 to 171000 per tonne, down RMB 500. The booming momentum in the domestic market was limited by further drop on the LME yesterday. Recently LME prices during Asian hours show more active so that it’s hard to offer price. There is very much a watch-and-wait scenario in the market.

“ Jinchuan Nickel was quoted at RMB 170000 per tonne in the AM session. We went up our price to RMB 171500 per tonne after Jinchuan Group raising its producer’s price. The transaction was moderate. ” A trader said to SHMET.

“ Jinchuan product was completed at RMB 171000 per tonne with stronger volumes. Some products were completed at RMB 171500 per tonne, but no large volumes emerged. In addition, Russia nickel was quoted at RMB 170000 per tonne. With less circulating cargoes in the market, the transaction was thin. ” Another trader said to SHMET.