spot copper was quoted at 39250-39350 rmbs per ton, down 250 from yesterday
with trading from 70c to level. The end of month business brought some more
buying on the close 2. Ring and quite a lot of borrowing was registered but the
backwardation eased. On the dominant positions there was a slight relaxation in
the grip by one party which might explain this. There was good interest in Rotterdam warrant again
at 10-15 dollars. It looks like the market has gained a little in confidence. SHFE
copper fluctuated lower this morning with a resistance locating at 60-day MA. In
domestic physical market, inquiry looks steady but some people were still under
big fund pressure hence they still hesitate to purchase. Overall sentiment was
stable this morning’s quotations were in a narrowing contango compared with
last week’s. The dealers looked active in cash-out but overall volume changed
little. Major quotations of high-level copper were in 40c-level this morning.
cathode nickel CIF (B/L) premiums were at 135-165 dollars per ton, while the
warrant premiums was at 135-165 dollars per ton. Import of Jinchuan nickel lost
about 500 rmbs today while Russina nickel import lost about 650 rmbs per ton.
Cathode nickel import ratio picked up once again. Recently a lot of sellers
directly import Russian nickel lead to the quotations of Russian Shanghai
bonded warrant were quite relatively high, at 150-160 dollars. Before this, for
nickel a lot of sellers also chose importing straightly.
zinc CIF (B/L) premium was quoted in 130-145 dollars per ton; Shanghai zinc
bonded warehouse warrants was quoted at a premium of 130-145 dollars, the
quotations slightly up today. SHFE main contract against LME zinc was at a
ratio of 8.23. LME zinc cash-3ms price were in 1 dollar contango. The imports
of spot zinc profited about 100 rmbs per ton today, while the forward zinc
import lost about 250 dollars. Zinc import ratio was still on highs with major
quotation of import premium stayed high too. This morning, we learned some
sellers quoted 125 dollars per ton for indian zinc ingot premium,130-135 dollars
for European brands and 140-145 dollars for goods brands. Today’s market was
obviously quiet with trading seemed less active from last week.
aluminum CIF (B/L) premium was 110-140 dollars per ton; Shanghai aluminum
bonded warehouse warrants premium was 110-140 dollars per ton. Premium showed
evidence of stabilising. SHFE the month contract against 3m LME aluminum were
at 7.42. LME aluminum cash price against 3m aluminum were in 18 dollars
contango. Today, the physical aluminum ingot imported price hung upside down
about 1100 rmbs, the forward aluminum imports lost about 1200 rmbs. Aluminum
import ratio narrowed slightly but market continued to be quiet. The consumer
factories had less wills to import aluminum as local supply was plenty.
Currently, there were only a small number of traders having interest in buying
aluminum cheaply as they believed the downward room of premium was not big.
However, most sellers would not like to sell at lower price as current LME
forward premium of aluminum was enough to cover the fund cost and warehousing
cost of dealers. Moreover, it is still profitable. Therefore, the sellers were
not urgent to sell and the market trading was still modest.
electrolytic copper CIF(B/L) premium was quoted at 110-130 dollars per ton. Shanghai electrolytic
copper bonded warehouse warrants premium was quoted at 110-130 dollars per ton,
the premium quotations rose slightly. Shanghai
spot copper against LME 3m copper were at 7.59, SHFE 3m copper against LME copper
were at 7.62. LME cash-3m was at 36 dollars back. Today, the physical copper
import lost about 400 rmbs per ton, three month forward copper import lost about
550 dollars. LME copper fell to 5000 dollars around, quotations of import
copper premium rose and import ratio picked up slightly. Seller’s quotations
were still firm. Currently the fire-processing copper B/L on the LME was quoted
at 110-130 dollars, while warrant was basically at 110-130 dollars. Despite of
it, sell offers were not many especially the warrant quotations. Traders had
strong wills to hold firm. Recently the five major banks’ one-year L/C in RMB
had a discount of 5.7 including damage while 90-day L/C in dollar had a
discount of 2.3 including damage. The financing clients were even more than
before. Overall trading was very modest.
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