Editorial

Recommend to remain on the sidelines for zinc price

Date Nov 19 2018 16:05:59Source:SHMET

SHANGHAI, Nov 19 (SHMET) – Market trades were low as downstream producers made a limited purchase. SHFE three month lead contract fell after it rose on November 19. There were both bullish and bearish views in the market. Environmental protection check supported lead price. A watch and wait stance is recommended for the spot lead price in the short term.

Mainstream offers in Shanghai spot lead market were at 18,400-18,750 yuan/mt on November 19, up 195 yuan/mt from the previous trading day, which had a discount of 150- 200 yuan/mt compared with 1812 contract. Jinsha brand lead ingots were offered at a premium of 200-300 yuan/mt against 1812 contract. Kazakhstan lead ingots were offered at a discount of around 100-150 yuan/mt against 1812 contract. Secondary refined lead ingots in Jiangxi province were offered at 18,500 yuan/mt (price to factory). Smelters made normal sales.

For editorial queries, please email to shmet@shmet.com.

 

Baotou’s rare earth power battery project begins production

Date Nov 19 2018 15:41:56Source:SHMET

SHANGHAI, Nov 19 (SHMET) – Baotou Haoming Rare Earth New Power Supply Company organized a production ceremony of its power battery project with a capacity of 200 million Ah per year. The total investment of the project was about 200 million yuan. New rare earth power supply refers to rare earth NiMH power battery.

Such battery has the advantage of NiMH battery and super capacitor, and can be used on pure electric bus. Its production marks China has made a breakthrough for the first time in the key technology in light rare earth high-end application, and the application has entered the stage of large-scale industrial development.

For editorial queries, please email to shmet@shmet.com.

Copper import price moves down

Date Nov 19 2018 15:24:44Source:SHMET

SHANGHAI, Nov 19 (SHMET) – Copper consumption narrowed rapidly in China. Importers, instead of planning for imports, had to sell spot resources at hand given high backwardation. Copper premiums were weighed down.

Premiums for goods under bill of lading in Shanghai came to $80-$90/mt cif, and those for goods under warrants in Shanghai bonded warehouse was at $85-$100/mt cif. The SHFE/LME cash copper price ratio registered at 7.99, and SHFE/LME 3M arb was at 8.00. LME cash copper was at backwardation of $18.5/mt against LME 3M copper. Spot import losses was at around 1224 yuan/mt, compared with import losses of 1285 yuan/mt in forward market.

For editorial queries, please email to shmet@shmet.com

Zinc import losses remain heavy

Date Nov 19 2018 15:22:05Source:SHMET

SHANGHAI, Nov 19 (SHMET) – Domestic spot premium inched up on November 19. SMC brand zinc ingots were offered at a premium of 140-160 yuan/mt against SHFE zinc1812 contract.  Spanish and Brazilian zinc ingots were offered at a premium of 10 yuan/mt against SHFE zinc 1812 contract. Zinc import losses were still serious. Premiums for B/L Shanghai stood at $140-160/mt cif and those for warrants in Shanghai bonded warehouse quoted at $160-180/mt, down $10 from November 16.

LME cash zinc had a backwardation of 78.75/mt against LME 3M zinc. For brands not exempted from customs tariff, the SHFE/LME cash price ratio came in at 8.14, and at 8.18 for duty-free Australia, South Korea brand zinc ingots. For brands not exempted from customs tariff, spot import losses stood at 1,221 yuan/mt, and 954 yuan/mt in forward import. For duty-free Australia, South Korea brand products, spot import losses registered at 1034 yuan/mt, and 894 yuan/mt in forward import. 

For editorial queries, please email to shmet@shmet.com.  

Nickel price to become softer

Date Nov 19 2018 14:44:01Source:SHMET

SHANGHAI, Nov 19 (SHMET) – Imported nickel was sold at a price lower than nickel futures price in domestic market on November 19.

A weakened dollar and potential increase of nickel output in Philippine weighed on nickel price.

As of 13:48 today, import profits of Russian nickel shrank to 203 yuan/mt, while import losses of nickel in forward market increased to 1,725 yuan/mt from last Friday. Spot discount against LME 3M nickel continued to fall.  

In the nickel market, premiums for nickel cathode under bill of lading in Shanghai held at $200-$280/mt cif, and those under warrants in Shanghai bonded warehouse stood at $220-$280/mt cif. SHFE cash nickel/LME 3M nickel ratio was at 8.42 and that for SHFE/LME 3M ratio at 8.27.

For editorial queries, please email to shmet@shmet.com.

Page2of2268