SHMET Spot Market Briefing 20100203-Aluminum

Date Feb 03 2010 14:06:11Source:SHMET

China’s spot aluminum is quoted between RMB 15980 and 16020 per tonne, gaining RMB 180, with trading from RMB 140 to 100 contango. The general transactions were mild. Further upside momentum has been generated following the metal falling deeply previously. Moreover aluminum’s fundamentals are more positive than other leading metals. The shutdown in capacity overseas and rising cost helped push aluminum prices much higher than expected. We expect the metal perform robust in the medium and long term but consolidate in the near-term.

“The market is seeing the last purchasing episode ahead of the New Year, and the transactions are not very active this week.” A Shanghai-based trader told SHMET.

“Most buyers purchase according to need. I have sold 700 tonnages with prices at 16000 yuan. The sales is moderate.” Another trader in Shanghai told SHMET. It’s reported that workers begin to return homes contributing to more idle capacity in the plant.

SHMET Spot Market Briefing 20100203-Copper

Date Feb 03 2010 14:05:25Source:SHMET

Shanghai spot copper is quoted between RMB 54650 and 55150 per tonne, up RMB 150 per tonne, with trading in the range of 100 contango and 50 backwardation. Some strong US economic data are supportive for non-ferrous metals demand therefore copper prices stopping dropping and recovering some gains today amid some improvement in market sentiment. However concerns over Chinese tightening monetary policy cast a cloud over the near-term market with the market appearing to be in wait-and-see mode and seeing rather moderate transactions. In our view, the market will keep consolidating in the absence of any upside momentum ahead of the Chinese New Year.

“We quote Jiang Copper at 20 contango today, while the products have been sold for 500 tonnes. The buying sentiment is not weak but today’s sales is moderate.” A trader told SHMET.

“The consumption is stifled evidently because there are some worries visible dominating the business climate. Though more enterprises hope to stock up before the Chinese New Year break, some choose to take look-on attitude with the intention of buying it at lower prices. Both factors caused the moderate sales in the morning.” Another trader said to SHMET.

SHMET Spot Market Briefing 20100202-Nickel

Date Feb 02 2010 14:08:00Source:SHMET

China’s spot nickel is quoted from RMB 141500 to 142500 per tonne today, up RMB 1000. Chinese domestic Jinchuan Nickel was completed at 141000 yuan per tonne in the morning on weaker LME performance. Sellers holding tight with look-on attitude following the LME during Asian trading hours rallying above 18000 and no change in Jinchuan Group’s prices. The prices offered by traders became higher. By the midday, some products of Jinchuan Nickel were transacted at 142500 yuan per tonne. Meanwhile Import Nickel was quoted between 1415000 and 142000 yuan per tonne with average sales.

“Most people were bearish toward LME. We sold a little volume of Jinchuan Nickel at 141000 yuan. Then we lifted prices to 142000 yuan, and we sold more than 20 tonnages. We lifted the prices because not much cargo is on offer. I heard the highest price was at 143000 yuan.” A trader told SHMET.

“We sold dozens of tonnes of Import Nickel at 141500 yuan, but now we quote it at 142000. Most people are reluctant to sell at lower prices. On the flipside, few people are interested in higher prices.” Another trader said to SHMET.

SHMET Spot Market Briefing 20100202-Tin

Date Feb 02 2010 14:06:20Source:SHMET

China’s spot tin is quoted between RMB 134000 and 135500 per tonne, drop RMB 500. Yun Tin is quoted at RMB 135500 per tonne and Yunheng at RMB 13500 per tonne, while other products are quoted from RMB 134000 to 134500 per tonne. The sharply falls on the LME depressed Chinese market sentiment. However spot tin didn’t fall deeply on tight supply-side and weaker selling sentiment from producers.

“The falls in LME prices exceeded 1000 dollars, while I reckon that domestic prices will follow the suit. Considering not many offers circulating in the market, our transacted prices will not go lower deeply. We got more enquiries in the morning. We sold more than 10 tonnes of Yun Tin. The reason is lower inventories rather than weak buying sentiment.” A trader told SHMET.

“We will not sell cargoes until Chinese New Year, but we got many bookings over past days. We had to ship after New Year if someone books the cargoes. In most cases, the prices ahead of New Year holidays are lower than the holidays past. Hence some consumers chose to buy ahead of New Year.” One producer told SHMET.

SHMET Spot Market Briefing 20100202-Zinc

Date Feb 02 2010 14:05:48Source:SHMET

Shanghai’s spot 1#Zinc products are quoted from RMB 16850 to 16950 per tonne, increase RMB 50 per tonne, with trading from RMB 470 to 370 contango. 0#Zinc products are quoted between RMB 16900 and 17000 per tonne, rise RMB 50, and the contango was between RMB 420 and 320. Today’s SHFE Zinc opened higher but subsequently had a pull back, and finally stabilized around yesterday’s closes. After falling for consecutive days, the market eventually stopped dropping while the sentiment is still weak.

“SHFE Zinc performed a little stronger yesterday, which offered the signals that today’s market would stop dropping. The market performs relatively stable in the form of correcting on the downside. As a result the market is still weak. We are cautions about the market rather than replenish immediately. Trading so far today has seen few dealings taking place. We have sold 80 tonnages yet.” A trading source said to SHMET.

“The price is not very steady now. If we quote higher prices, few people will buy cargoes from us. Moreover, losses will be made once the price dropped again. But we got more enquiries due to stable market today.” Another trader told SHMET.