SHMET Spot Market Briefing 20100204-Lead

Date Feb 04 2010 15:09:49Source:SHMET

Shanghai’s spot Lead products are quoted from RMB 15400 to 15700 per tonne, growing RMB 200 per tonne. The metal gained much ground during the afternoon, while further gains were seen today.

“Despite a lot of falls seen in the past few days, smelters’ prices didn’t drop deeply. The main reason behind the move is that higher stocks traders dumped the cargoes at lower prices. However with the dumping giving way, the spot prices are moving toward smelters’ prices after broad market rallied. The prevailing lead prices are around 15500 yuan per tonne.” A trader in the spot market said to SHMET.

Though the market gets some improvement, traders are still holding prudent attitude. “ There are still many uncertainties over the market. The demand is not robust and most deals are completed between traders. We sold about 20 tonnages today.” Another smaller trader told SHMET.

SHMET Spot Market Briefing 20100204-Aluminum

Date Feb 04 2010 15:08:47Source:SHMET

China’s spot aluminum is quoted between RMB 16020 and 16060 per tonne, gaining RMB 40, with trading from RMB 60 to 20 contango. The market has been into the last episode for stocking up ahead of the Chinese New Year and saw moderate transactions in the morning. Most enterprises, staying sidelined of the market previously, chose to purchase the cargoes. Though the market remains nervous over concerns of European debt issues, the prices might move higher in the medium and longer term with some fundamental improvements.

“The sales was not very poor, but it is still unsatisfied. With the fundamental lacking of a clear recovery, prices’ volatile moves and cautiousness sentiment are witnessed.” A Shanghai-based trader told SHMET.

“I made no offer today because the market is staying tight.” A Wuxi-based trader said to SHMET.

The prices in Wuxi are flat Shanghai.

SHMET Spot Market Briefing 20100204-Copper

Date Feb 04 2010 15:08:15Source:SHMET

Shanghai spot copper is quoted between RMB 54000 and 54400 per tonne, down RMB 750 per tonne, with trading in the range of 100 contango and 100 backwardation. The transactions were fairly mild. Eurozone debt issue prompted USD to rally strongly after broke down 10-day MA, leading to LME metals drop sharply. Today’s futures opened lower and then consolidated to track London with little incentive noticed. Consumers viewed it as a good opportunity to take in cargoes. Business was briefly pretty active.

“We quoted Jintun Copper at 50 contango in the morning and India Copper at 100 contango. The shipment was moderate. I heard some traders were reluctant to sell today with intention of selling it tomorrow or next week.” A trader told SHMET.

“The spot prices are seeing anti-dropping, but the prices are still far away from psychological price. The downward trend is mainly driven by LME, and a rally might take place in the following sessions.” Another trader said to SHMET.

SHMET Spot Market Briefing 20100203-Nickel

Date Feb 03 2010 14:09:05Source:SHMET

China’s spot nickel is quoted from RMB 142500 to 143500 per tonne today, up RMB 1000. With the background of increasing prices in domestic market, Jinchuan Nickel is quoted between RMB 143000 an 143500 per tonne and Import Nickel at RMB 142500 per tonne. The sustained Jinchuan Group’s prices prompted rising cost pressures on traders. Most spot traders chose to make no offers or sell it at higher prices.

“The sales is not poor, as Jinchuan Nickel was transacted at 143000 yuan while Import Nickel at 142500 yuan. We have sold about more than 10 tonnages yet.” A trader in Shanghai told SHMET.

As far as I know, other traders quoted at 143500 or so but few dealings were taking place. “We quote Jinchuan Nickel at 143500 yuan, but I get feeling that hardly any business will be transacted at the level. We are reluctant to sell cargoes at lower prices and seeing no offers below 143000 yuan in the market.” Another trader said to SHMET. “Unless Jinchuan Group decrease the prices, we may replenish the stocks at lower levels. Nevertheless the offer prices will become higher and higher.”

SHMET Spot Market Briefing 20100203-Tin

Date Feb 03 2010 14:07:57Source:SHMET

China’s spot tin is quoted between RMB 133500 and 135000 per tonne, dropping RMB 500. Yun Tin is quoted at RMB 135000 per tonne, while other products are quoted at RMB 133500 per tonne. Despite overnight LME trading recovered some ground, today’s spot tin prices continued to move lower due to the drop in Asian trading hours as well as negative sentiment in the domestic market. The prices offered by producers remain firm.

“Though we saw some gains on the LME last night, there are still no signs of an end to the downside. As a result, we lowered the quotes again today. We sold 5 tonnes of materials, with prices at 131000 yuan, which will be delivered on Friday or Saturday. In addition, we sold 35 tonnages delivered at the beginning of March. The spot tin products which are quoted from 133000 to 133500 yuan have not been sold yet.” A trader said to SHMET. “The domestic prices will not have any remarkable recovery before the Chinese New Year, although London prices make some gains.”