SHMET Spot Market Briefing 20100408-Zinc

Date Apr 08 2010 13:45:06Source:SHMET

Shanghai 0#Zinc is quoted between RMB 18400 and 18500 per tonne, down RMB 200 per tonne, with trading from RMB 775 to 675 contango; 1#Zinc is quoted between RMB 18350 and 18450 per tonne, down RMB 200 per tonne, with trading from RMB 825 to 725 contango.

The market has come under pressure as Chinese central bank will sell three-year bills for the first time since June 2008 with the Zinc price consolidating at the lower level. The insiders considered it as the further signals of tightening of monetary policy and presented longer-term policy trend. It is expected that the trend will affect the Zinc market in the short term and the metal will keep the consolidating trend.

"Our sales was good yesterday. Today the price went down ,so there are more buyers come to purchase." Some Zinc trader said to SHMET.

" The Zinc price went down sharply, so factories are relatively active to purchase the goods. The sales is nice." Another Zinc trader said to SHMET. It is reported that some traders bid firmly and are unwilling to purchasing goods at lower prices amid broad-based bullish attitude.

SHMET Spot Market Briefing 20100408-Lead

Date Apr 08 2010 13:44:39Source:SHMET

China’s spot Lead is quoted from RMB 15700 to 15900 per tonne, flat. Overnight we saw a pullback on the LME, prompting today’s spot market to be unchanged with flat prices offered by traders. Overall, the recent positive economic data has drawn a bright picture for lead. The spot trading is much better than last month, however the incentive is still not evident amid the oversupplied conditions.

“ Lead price is fluctuating with overnight LME movements, and the fundamentals don’t have much impact on spot prices. I expect that lead price might have further gains as the overall recovery in economy.” A lead trader said to SHMET.

“ The sales today is mild, as most downstreams are cautious and rational. They purchased as required. We just sold over 60 tonnages.” Another lead trader told SHMET.

SHMET Spot Market Briefing 20100408-Aluminum

Date Apr 08 2010 13:42:48Source:SHMET

China’s spot Aluminum is quoted from RMB 16140 and 16200 per tonne, decreasing RMB 50, with trading from RMB 150 to 90 contango. In spite of recent robust data out of Europe and US, worries over China central bank’s restart liquidity tightening have plagued the investment demand of domestic metals. In addition, the fundamentals that tin market is in surplus, leading us to expect the upside momentum to fade in the short term. I feel that the price will remain consolidations.

“ We have saw more downstream buying emerging, as the market transaction is starting to be active. We have sold over 700 tonnes of cargoes yet. Traders’ quotes were higher over past two days, however some traders are more willing to selling at higher prices.” A Shanghai-based trader told SHMET.

“ There are many cargoes circulating in the market now. The expectations of increasing consumption have well underpinned the aluminum price. It’s logical to see a fall in price today as the metal reached the higher level before. But I think the falls should not be large.” Another spot trader said to SHMET.

Wuxi price is quoted from RMB 16160 to 16170 per tonne.

SHMET Spot Market Briefing 20100408-Copper

Date Apr 08 2010 13:42:18Source:SHMET

Shanghai spot Copper is quoted between RMB 61000 and 61300 per tonne, down RMB 650 per tonne, with trading from 300 to 150 contango. Despite increased expectations of liquidity tightening, the copper price will continue uptrend on the back of obvious stronger macroeconomic environment in both China and other regions. The metal is likely to extend gains after consolidations.

“ Though there is little upside incentive and some adjustment seen on the metal, the current level can not be viewed as the top referring to the whole April. In light of the recent movements, we estimate that there is still some room for a fall.” A trading source said to SHMET.

“ The falling copper prices has prompted the transaction to improve, as we got more enquiries from the downstream. After experiencing the previous gains, the nearby copper is more likely to consolidate as well as digest the profit. The products from us were selling at 61200 yuan per tonne, over 500 tonnages.” Another trading source told SHMET.

SHMET Spot Market Briefing 20100407-Nickel

Date Apr 07 2010 14:06:28Source:SHMET

China’s spot Nickel is quoted from RMB 170000 to 171000 per tonne, dropping RMB 500. Jinchuan Nickel is quoted at RMB 171000 per tonne, while Import Nickel is quoted around RMB 170000 per tonne. As traders lower its prices in inch, buying sentiment was much stronger. The transaction showed more active in the AM session.

“ Jinchuan Nickel was quoted at 171000 yuan per tonne. The room for decline was limited by high cost of Jinchuan Nickel.” A trader said to SHMET.

“ The action of hedging showed more active in these two days. With boom sentiment, most traders who kept stocks at lower price earlier were favorable to sell cargoes. ” Another trader said to SHMET.