SHMET Spot Market Briefing 20100317-Aluminum

Date Mar 17 2010 14:26:31Source:SHMET

China’s spot Aluminum is quoted from RMB 16160 and 16200 per tonne, flat, with trading from RMB 310 to 270 contango. The recent moves of SHFE Aluminum can be viewed as consolidations with the previous triangle pattern returning to the narrow range bound. On the back of strong selling pressure, the spot aluminum is waiting for attracting speculative fund. Shanghai aluminum is looking for marking higher in order to line up with still robust LME performance.

“ Now, the format of strongly exogenous market and weakly domestic market is noticeable, as LME came back to high levels and SHFE Aluminum continues to consolidate at lower levels. But this situation can not last long. If the spot aluminum falls significantly again, we will consider whether we should replenish some stocks.” A Shanghai-based trader told SHMET.

“ Today’s transaction shows little change, as fewer enquiries emerge. In spite of a little stronger shipment pressure, we will not sell at lower prices and we have sold over 700 tonnes.” Another trader said to SHMET.

Prices in Wuxi are flat with Shanghai.

SHMET Spot Market Briefing 20100317-Copper

Date Mar 17 2010 14:19:49Source:SHMET

China’s spot Copper is quoted between RMB 58700 and 59000 per tonne, up RMB 600 per tonne, with trading from 350 to 200 contango. Aftershocks in Chile leading to electricity shortage, which subsequently affected copper production. While the reports helped copper price to recover some ground, overnight trading saw LME Copper closing at 7440 that once again support the metal. However worries over Chinese monetary tightening policies might cause further consolidations in the short term.

“ The consumption continues to increase, when the market is in well-supplied conditions. We can see many Import copper products circulating in the market. Our sales today is better than yesterday, as we have sold over 500 tonnes. Most deals were completed at 58800 yuan.” A trader said to SHMET.

“ The market lack of liquidity, combining with all the unclear policies and economic factors, contributing to the market being diverse with bulls and bears. After SHFE rapidly recovered and stabilized following the early falls, we think the copper market will maintain consolidating on the upside.” Another trader told SHMET.

SHMET Spot Market Briefing 20100316-Nickel

Date Mar 16 2010 14:57:10Source:SHMET

China’s spot Nickel is quoted from RMB 156500 to 157500 per tonne, flat. A rebound during the Asian hours recouped some of the losses on the LME overnight. The offer prices from traders in the Shanghai spot market stayed firmly, between RMB 157000 and 158000 per tonne. Due to oversupply in the domestic market, the transacted price of Nickel hadn’t been affected by the downside momentum in the LME market, keeping steady.

“ Jinchuan Nickel was quoted at RMB 158000 per tonne, while Imported Nicke was quoted at RMB 157000 per tonne. The transaction was pretty thin today. With higher cost of import Nickel and higher producer’s prices from Jinchuan Group, the falls should be limited. We were also reluctant to sell cargoes at lower price. ” A trader in Shanghai said to SHMET.

“ The transacted price of Nickel kept flat with yesterday. Sell off in the market was more active, however not many buyers emerged. Particularly sufficient supply of Jinchuan Nickel, there was large pressure for rising. ” Another trader said to SHMET.

SHMET Spot Market Briefing 20100316-Tin

Date Mar 16 2010 14:56:42Source:SHMET

China’s spot Tin is quoted between RMB 139000 and 140500 per tonne, flat. Yunnan Tin is quoted at RMB 140500 per tonne, while other products are quoted around RMB 139000 per tonne. With enough supply-side after Lunar New Year, Tin prices in Guangdong Province and Shanghai continued to the downside. Yunnan Tin and Yunhen Tin were traded at RMB 140000 per tonne in the AM session.

“ We sold a lot of Yun Tin products at RMB 139800 per tonne in the morning. The transacted price in the market was mixed. The cargoes continued to flow into the market, which is sure to dampen the price. Thus it was favorable for us to sell cargoes earlier. ”A trader said to SHMET.

“ Guangdong market cut its prices earlier than Shanghai market, and some products had been traded around RMB 137500 per tonne. When Prices began to move lower, it was much crucial to sell cargoes quickly. ”Another trader said to SHMET.

SHMET Spot Market Briefing 20100316-Zinc

Date Mar 16 2010 14:56:01Source:SHMET

Shanghai 0#Zinc is quoted between RMB 17950 and 18050 per tonne, up RMB 50 per tonne, with trading from RMB 685 to 585 contango; 1#Zinc is quoted between RMB 17900 and 18000 per tonne, up RMB 50 per tonne, with trading from RMB 735 to 635 contango. Today all the commodities have declined under the influence of expectations of the Chinese monetary tightening policy. The Greek debt crisis hasn't been solved yet and stronger dollars led to weakness in the prices as well as depressing the market mood. In terms of spot market, the sales is always weak after the holidays. Insiders considered that the real strong season will come later than former years.

" The goods is sufficient. But the supply exceeded demand so that the sales is moderate. The factories are in no hurry to purchase the goods." Some Zinc trader said to SHMET in the morning.

" The Zinc no longer led the market yet, fluctuating with the copper price nowadays. There has not some clear directions for the market and the sales conditions are also unfavorable." Another Zinc trader said to SHMET.