SHMET Spot Market Briefing 20100601-Nickel

Date Jun 01 2010 14:06:46Source:SHMET

China’s spot nickel is quoted from RMB 169000 to 170000 per tonne, dropping RMB 2000. LME Nickel was in a weak tone in the AM session, keeping consolidating on downside. Traders were more favorable to sell cargoes and the offer-price was lower. The transaction was better than yersterday’s in the AM session.

“ We bided Jinchuan nickel at RMB 170000 per tonne, while some traders bided at RMB 169500 per tonne. There was little downside momentum seen on the Kerb in the AM session. The willing of selling cargoes was stronger. Russia nickel was quoted around RMB 168500 per tonne. If LME continued moving on downside, the selling-off would showed more active. ” A trader said to SHMET.

“ It was said that the production of 300 series stainless steel was saturated, almost leading shut-down. If the news turns to be true, it would make a great impact on Jinchuan nickel and Russia nickel. LME had broken through the level of $21000 for the moment. The next crucial point was to see whether the nickel price could be supported at $20450. ” Another trader said to SHMET.

SHMET Spot Market Briefing 20100601-Tin

Date Jun 01 2010 14:06:16Source:SHMET

China’s spot Tin is quoted from RMB 141500 to 143000 per tonne, slightly down RMB 250 per tonne. Yunnan Tin and Yunxi Tin are quoted at around RMB 143000 per tonne. Hongyu, Yuta, Nanshan, Feidie and Jinhai Tin are quoted at around RMB 141500 per tonne. There are not many inquiring calls in the morning. Traders are unwilling to stock goods and downstream consumers continued to stay on the sidelines of market at present.

“ We have only sold some tonnes of lower-grade tin at RMB 141500 per tonne in the morning. There is so much bad news from abroad now and the domestic tightening of monetary policy is so tense, what will all dampen the rising metal price. Downstream consumers’ purchasing sentiment is very poor.” Some tin trader said to SHMET.

“ Some higher-grade tin such as Yunnan Tin and Yunhen Tin from traders are lacking of stock now. The circulating situation of the lower-grade tin on the market has been improved these two days. With the poor sales, there are more traders choose to sell goods for short term.” A tin trader said to SHMET.

SHMET Spot Market Briefing 20100601-Zinc

Date Jun 01 2010 14:05:46Source:SHMET

Shanghai 0#Zinc is quoted between RMB 15550 and 15650 per tonne, down RMB 100 per tonne, with trading from RMB 275 to 175 contango; 1#Zinc is quoted between RMB 15500 and 15600 per tonne, down RMB 100 per tonne, with trading from RMB 325 to 225 contango. Though the sales is thin in the traditional strong season, it can been seen that the spot trading volume should be further shrink in June. SHFE Zinc went higher and then drift lower without LME market today. The spot price is lower than yesterday. But insiders are holding pessimistic attitude about the market, so the sales is not very nice.

“ We have sold 200 tonnes of ordinary 0#Zinc at RMB 15600 per tonne , flat with the lowest price yesterday. There are not many people come to purchase them.” Some zinc trader said to SHMET.

“ The large environment is not positive to us. The market is a buyer’s market now and the oversupplied condition is very serious. We sell goods according to SHFE price every day and the consumption is poor. Downstream consumers are unwilling to purchase goods.” Another zinc trader said to SHMET.

SHMET Spot Market Briefing 20100601-Lead

Date Jun 01 2010 14:05:16Source:SHMET

China's spot Lead is quoted from RMB 14600 to 14800 per tonne, decreasing RMB 100 per tonne. Because LME market closed yesterday, domestic spot lead price is much more independent today. Most of traders are pessimistic about the near-future market and slightly moved down price to sell goods, but downstream consumers still hold wait-and-see attitude, so the sales is thin.

“ The sales is poor on the lead market. Downstream consumers were unwilling to purchase goods above RMB 14700 per tonne yesterday, so we moved down RMB 100 per tonne today again to sell goods as soon as possible.” A lead trader who we have interviewed yesterday said to SHMET.

“ It is obvious that LME market is on the downside though it has been closed yesterday. We can’t quote the price at a higher level, and the sentiment on the market is still prudent.” Another lead trader said to SHMET. In our view, RMB 14600 to 14700 per tonne is an important target price of the spot lead market at present. Most of people are unwilling to purchase goods above this price.

SHMET Spot Market Briefing 20100601-Aluminum

Date Jun 01 2010 14:04:41Source:SHMET

China’s spot Aluminum is quoted from RMB 14900 and 14940 per tonne, losing RMB 10 per tonne, with trading from RMB 60 to 20 contango. With frequently enacting domestic real estate policies these days, in a way, it is likely to affect the demand of aluminum. Once the policies affect the demand, both the investments on real estate and purchasing sentiment will be dragged down and finally affect the consumption of aluminum.

“ Seen from the trend at present, aluminum price is still keeping on the consolidating trend. We expected that aluminum price will consolidate around RMB 15000 per tonne these days.” An aluminum trader said to SHMET.

“ We have mainly sold 700 tonnes of goods at RMB 14910 per tonne. Though downstream consumers all accepted the price at present, they hold the bearish attitude on the near-future market. They considered that the rebound room for the aluminum price is not very wide, so there are many people inquire but little factories come to purchase goods.” Another spot trader said to SHMET.