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Zinc- foreign market stronger than domestic market and focus on consumption in the long term

Date Jan 16 2018 17:20:25Source:SHMET

Zinc Premiums in Shanghai bonded, and CIF shanghai saw no change, at $155-$165/mt and $160-$170/mt respectively. Today LME C-3m valued at 47B, while the SHFE Spot/LME 3M arb also retreated to around 7.58, the spot import loss to RMB1067/mt and expanding loss slightly in forward market, around RMB1267/mt lost. Custom duty exempt brands, Australian and Korean, still generate quite a loss of RMB1114/mt in spot import market, but may lose RMB920/mt in forward import.

LME zinc c-3m basis is closing at $47, with squeeze coming again. The stronger foreign market led to an in crease in import losses, while domestic weakness is due to the market’s optimism about the supply of concentrate in the long term, with no improvement in recent downstream consumption. Zinc premium market enquiries are light, with the transactions being general.

                                                                                                                 

Edited by SHMET

Aluminum – no news about the impact of the production cutbacks and bad weather and pay attention to

Date Jan 16 2018 17:20:01Source:SHMET

Traders reported that spot premiums CIF shanghai remained at level $95-$115 as usual, so did the physical warrants. LME C-3m valued edged to $10.25C. SHFE Spot/LME 3M arb flattened out at 6.67, suggesting importing may lose around RMB2770/mt in spot market and RMB2419/mt in forward market.

There is no news about the feedback on the impact of the production cutbacks and bad weather, which indicates that the environmental protection and bad weather previously hyped have been digested. The noteworthy medium-term logic is whether the export of aluminum products can continue and the impact of the change of exchange rate on this. Electrolytic aluminum market sentiment is still depressed, with traders keeping stepping aside. 

Edited by SHMET

Copper – earthquake happened in Peru causes no damage

Date Jan 16 2018 17:19:37Source:SHMET

Premiums for CIF Shanghai stood at $60-$70while that for shanghai bonded warehouse flatted at $65-$80, a continuing component of previous re-stabilization. LME C-3m valued was $28.75C. SHFE Spot/LME 3M arb stayed steadily at around 7.62, with an import loss of RMB171/mt, whilst 3M SHFE/LME arb may lose RMB 302/mt, with ratio of 7.60.

There was an earthquake in Southern Peru, but with no damage reports of copper mines. Peru is the world’s second-largest copper producer, with many mines in the south are located inland, far away from the epicenter. A representative from the Southern Copper Corporation said that its Cuajone and Toquepala copper mines have no damage report up till now. Traders make general inquiries in the copper imports market and the market transaction is relatively stable due to the fact that there is a downward trend as financing activity weakens premium.

 

 

Edited by SHMET

Nickel –SHFE nickel stocks increased greatly

Date Jan 15 2018 17:05:21Source:SHMET

With regards to NI FP, offers in Shanghai bonded zone keep standing at the range of $300-$350, and so does CIF delivery. The SHFE Spot/LME 3M arb for Russian NI was stable, at 7.69 and that for 3M SHFE/LME at 7.66, equated to a loss of RMB2442 in spot (2%of import tax) and a loss of RMB3266 3M forward.

Recently, SHFE nickel stocks has continued to rise, with a cumulative rally of nearly 45 percent in four weeks, the highest in 17 weeks. This was caused by the flow of imported nickel into the country last year, and the lower- than- expected nickel plate consumption is another factor. The overall transaction in the imports of nickel premium market maintains flat.

Edited by SHMET

Zinc- squeeze coming again, with bad consumption and accumulated stocks

Date Jan 15 2018 17:04:55Source:SHMET

Zinc Premiums in Shanghai bonded, and CIF shanghai saw no change, at $155-$165/mt and $160-$170/mt respectively. Today LME C-3m valued at 52B, while the SHFE Spot/LME 3M arb also retreated to around 7.53, the spot import loss to RMB1182/mt and expanding loss slightly in forward market, around RMB1232/mt lost. Custom duty exempt brands, Australian and Korean, still generate quite a loss of RMB1266/mt in spot import market, but may lose RMB922/mt in forward import.

LME zinc c-3m basis is closing at $52, with squeeze coming again. SHFE zinc stocks rose last week, just as we had expected. If consumption does not improve greatly, the stocks will continue to accumulate, with the shortage of zinc concentrate being still not alleviated. There was no improvement in the market. Zinc premium market enquiries are light, with the transactions being general.

                                                                                                                

 

Edited by SHMET
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