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.

SHMET Spot Market Briefing 20100129-Tin

Date Jan 29 2010 14:00:40Source:SHMET

China’s spot tin is quoted between RMB 134500 and 136000 per tonne, flat. Yun Tin is quoted at RMB 136000 per tonne, while others are quoted at RMB 134500 per tonne. Trading so far today has seen few enquiries and transactions. With the further downside moves limited, the price is becoming stable ahead of New Year.

“The prices are mixed, illustrated by higher quotes from the upstream and lower prices from traders. The market is in balanced conditions these days with logical buying sentiment.” A trader said to SHMET in the morning.

“We sold 5 tonnes of Yun Tin in the morning with offers from 135000 to 136000 yuan. When the Chinese New Year holiday gets closer, the demand for the metal is weak amongst quiet market. Usually, the tightness on supply will bring panic to the market. But now the effect is little.” A trading source told SHMET.

SHMET Spot Market Briefing 20100129-Zinc

Date Jan 29 2010 14:00:07Source:SHMET

Shanghai’s spot 1#Zinc products are quoted from RMB 17500 to 17600 per tonne, decrease RMB 450 per tonne, with trading from RMB 450 to 350 contango. 0#Zinc products are quoted between RMB 17550 and 17650 per tonne, dip RMB 450, and the contango was between RMB 400 and 300. Today’s SHFE Zinc continued to fall following yesterday’s rather weak performance. No surprising considering today’s falls, hence no additional panic sentiment was triggered.

“The business was still rather quiet, though more enquiries. Most people don’t want to trade amid continued decreased prices. We just sold more than 10 tonnages today.” A zinc trader told SHMET.

“Despite the downside trend is still on track, the market has been fallen for several consecutive days. We expect that there is few room for a fall.” Another trader told SHMET.

SHMET Spot Market Briefing 20100129-Lead

Date Jan 29 2010 13:59:29Source:SHMET

Shanghai’s spot Lead products are quoted from RMB 15000 to 15400 per tonne, down RMB 400. There are no signs that the downside momentum will be limited.

“There was some buying interest on dips yesterday but apparently the situation changed today. We just sold very few tonnages while most people didn’t want to make any offers.” A trader in the spot market said to SHMET.

“After the price broke down 15500 yuan, the sales was more lackluster than yesterday. If the prices continued to fall, we should choose to wait rather than sell at low levels.” Another trader told SHMET.

SHMET Spot Market Briefing 20100129-Aluminum

Date Jan 29 2010 13:58:58Source:SHMET

China’s spot aluminum is quoted between RMB 15920 and 15960 per tonne, drop RMB 260, and trade from RMB 15 contango to 25 backwardation. The transaction was moderate. The buying sentiment improved on stockpiling at weekend, but the whole sales was not very active. The macro economical concerns are still in force, worsening the situation of oversupplied market conditions. With more weight coming from the fundamentals, the aluminum prices are more potential for consolidation in the short-term.

“The sales was better than the preceding two days, probably for stockpiling demand from the downstream at weekend. I have sold 800 tonnages at 15930 yuan.” A trader in Shanghai told SHMET.

“The weak aluminum market plus confidence hammered by consecutive slump together with increased shut-down mills, the upstream choose to depress the prices. Against this backdrop, we hold out no hope.” Another trader told SHMET.