SHMET Spot Market Briefing 20100513-Aluminum

Date May 13 2010 14:33:00Source:SHMET

China’s spot Aluminum is quoted from RMB 15290 and 15330 per tonne, decreasing RMB 20 per tonne, with trading from RMB 50 to 10 contango. Despite that the spot Aluminum price is lower than the cost, the production capacity won’t be closed and the supplied volume won’t be decreased in the short term owing to the particularity of the producing technology. So it needs further process to support the Aluminum price.

“ SHFE Aluminum should keep the consolidation trend in the short term. Nowadays, the dollars’ consolidation trend was short-lived, so the metal prices can be stable. But the upper MA system is generally putting the pressure to the metals, so we are also having negative attitude.” An Aluminum trader said to SHMET.

“ Today we have sold the goods at RMB 15310 per tonne, the sales is still thin. It is obviously that the real estate adjusted policy put much pressure to the sales of Aluminum, however, the production is going up, so there are not much good news to support SHFE Aluminum.” Another spot trader said to SHMET.

SHMET Spot Market Briefing 20100513-Copper

Date May 13 2010 14:32:34Source:SHMET

Shanghai spot Copper is quoted between RMB 56200 and 56450 per tonne, flat, with trading from flat to 150 backwardation per tonne. SHFE market is still weaker. Evidently, domestic copper futures are usually following the downside trend but ignoring the uptrend. The supply is sufficient in the spot market, and traders are willing to sell goods, but the demand is lagging behind. Downstreams are all having wait-and-see attitude towards to the market.

“ SHFE copper has not got much room for rebound. It will be suffered by the pressure of 10-days line. There are many people have negative attitude toward the near-future market. We think the copper price won’t go down in the short term. We consider it as a consolidation phase at sometime.” Some trader said to SHMET.

“ We have sold the goods at about RMB 56400 for 800 tonne. The downstreams’ demand was weaker obviously, but they are unwilling to purchase the goods owing to the copper price at present.” Another trader said to SHMET.

SHMET Spot Market Briefing 20100512-Nickel

Date May 12 2010 14:28:38Source:SHMET

China’s spot Nickel is quoted from RMB 175500 to 176500 per tonne, dropping RMB 1500. Jinchuan Nickel is completed between RMB 176000 and 176500 per tonne, while a small number of products are completed at RMB 177000 per tonne. The transaction was moderate in the AM session. However the look-on attitude was stronger on the LME during Asian hours in the mid-afternnon. The volume in the domestic spot market is susceptible to the mood of LME for the moment.

“ Jinchuan Nickel is completed from RMB 176500 to 177000 per tonne. But I have noted that some prouducts were also completed at RMB 176000 per tonne. The transaction was moderate, however it showed sluggish after LME slipping. ” A trader said to SHMET.

“ The general volume of transaction was moderate. Although LME Nickel sharp falled yesterday afternoon, it pared some of early losses in the late afternoon. The market didn’t appear to be panic sentiment and the volume showed stable. The transacted price was between RMB 176000 and 177000 per tonne, mainly for Jinchuan Nickle. ” Another trader said to SHMET.

SHMET Spot Market Briefing 20100512-Tin

Date May 12 2010 14:28:01Source:SHMET

China’s spot Tin is quoted from RMB 143000 to 144500 per tonne, flat. The transaction showed lackluster. The market sentiment was depressed by downside momentum on the LME, which leading the reactive market back to weak tone. Both traders and mills adopt a look-on attitude for the market. Moreover downstream mills hold onto a bearish outlook recently, the buying sentiment was weaker.

“ Tin products were completed at RMB 143000 per tonne today. Without sufficient stocks, the volume was lower. There wasn’t any breakthrough for Tin, thus the market was in a weak tone.” A trader said to SHMET.

“ The market sentiment was warmed up yesterday morning, so we got more enquires. However there was no enquires after LME dropping in the afternoon. It was hard to make transaction and the price was lower. The offer-price today was flat with yesterday’s. The volume was also decreasing. ” Another trader said to SHMET.

SHMET Spot Market Briefing 20100512-Zinc

Date May 12 2010 14:27:18Source:SHMET

Shanghai 0#Zinc is quoted between RMB 16350 and 16450 per tonne, down RMB 150 per tonne, with trading from RMB 330 to 230 contango; 1#Zinc is quoted between RMB 16300 and 16400 per tonne, down RMB 150 per tonne, with trading from RMB 380 to 280 contango per tonne. The CPI in April triggered worrying about the rate hike. SHFE Zinc has been oversold, and it is potential for rebound. In the spot market, owing to the unclear near-future market trend, the sales is still moderate.

“Today SHFE Zinc price consolidated and went down with the LME trend continuously, as the spot Zinc went down followed SHFE price. There are more and more traders unwilling to sell goods in the spot market. “ Some Zinc trader said to SHMET.

“ Nowadays, the mood of risk aversion spilled over the whole spot market. The price trend is unstable. So the factories would rather wait for sometime and purchased the goods according to their requirement.” Another Zinc trader said to SHMET.