SHMET Spot Market Briefing 20100531-Aluminum

Date May 31 2010 17:27:51Source:SHMET

China’s spot Aluminum is quoted from RMB 14910 and 14950 per tonne, losing RMB 80 per tonne, with trading from RMB 110 to 70 contango. Ministry of Information Industry ordered all the factories in 18 departments to eliminate old production capacity on May 27th. With intensifying the energy-saving and emission-reduction, the output of electrolytic aluminum will be controlled this year.

“ Owing to the descent of SHFE Aluminum last Friday, insiders are more prudent. The pressure of selling goods is very large if the aluminum price goes higher. Downstream consumers are all holding bearish attitude toward the near-future market. The sales is poor.” An aluminum trader said to SHMET.

“ We have sold more than 600 tonnes of goods at RMB14920 per tonne. RMB 15000 per tonne is still offering much pressure in these days. A large surplus in aluminum market can be viewed as a main reason why the metal performs much weaker than copper.” Another spot trader said to SHMET.

SHMET Spot Market Briefing 20100531-Copper

Date May 31 2010 17:27:24Source:SHMET

China’s spot copper is quoted between RMB 55350 and 55700 per tonne, down RMB150, with trading from RMB 50 contango to 50 backwardation. Misgivings over the Euro Zone and volatile economic recovery in the US, coupled with the decreased funds strength make the overall macro-economic conditions far below expectation. It is difficult to shrug off downside momentum in the commodities market, resulting in pressuring bullish sentiment on copper fundamentals.

“ The consumption from downstream consumers was stronger. However softer copper price depressed the purchasing sentiment. Pressured by the moving average, SHFE Copper got a pull-back today. There wasn’t much room for a rebound. We still preferred to short-term investment. ” A trader said to SHMET.

“ Copper products were mainly completed around RMB 55600 per tonne. The transaction was moderate because of first trading day this week. We sold about 300 tonnages today. The prevailing price was from RMB 53000 to 56000 per tonne. ” Another trader said to SHMET.

SHMET Spot Market Briefing 20100527-Nickel

Date May 27 2010 14:21:28Source:SHMET

China’s spot nickel is quoted from RMB 170500 to 171500 per tonne, up RMB 500.  Traders are more cautious with concerns that Jinchuan Group has entered the maintenance period. If SHFE Nickel immediately is buoyed by hiking LME, it will be hard to buy cargoes. Traders offered price firmly in the AM session, and were unwilling to sell cargoes at lower price.

“ Earlier we brought some Jinchuan products at RMB 170500 per tonne from other traders, which were completed at RMB 171500 per tonne later. The transacted price of Jinchuan Nikel was between RMB 171000 and 172000 per tonne in the market. ” A trader said to SHMET.

“ The premium between Russia and domestic Nickel showed narrowing without sufficient stocks for Russia products. Thus Russia products were completed at RMB 170000 per tonne, while Jinchuan nickel was quoted at RMB 171000 per tonne with weak volumes.” Another trader said to SHMET.

SHMET Spot Market Briefing 20100527-Tin

Date May 27 2010 14:20:55Source:SHMET

China’s spot Tin is quoted from RMB 141000 to 142500 per tonne today, up RMB 250 per tonne. Yunnan Tin and Yunshan Tin are quoted around 142500 per tonne. Hongyu Tin and Yuta Tin are quoted at RMB 141000 per tonne. Nanshan Tin is quoted at RMB 140500 per tonne. There are not many inquiring calls in the morning. The sales is thin and more downstream consumers chose to wait and see.

“ We have sold around 10 tonnes of tin at RMB 140500 per tonne in the morning. Owing to the nice sales on the market, we sold a lot of goods and continued to replenish them at present.” Some tin trader said to SHMET.

“ There are not many phone calls to inquire price in the morning. We only sold 2 or 3 tonnes of brand tin around RMB 142500 per tonne in the morning. Some second or third-lined brand tin have circulated on the market for sometime, and we estimate that the the goods were not enough.” A tin trader said to SHMET.

SHMET Spot Market Briefing 20100527-Zinc

Date May 27 2010 14:20:11Source:SHMET

Shanghai 0#Zinc is quoted between RMB 15250 and 15350 per tonne, down RMB 200 per tonne, with trading from RMB 405 to 305 contango; 1#Zinc is quoted between RMB 15200 and 15300 per tonne, down RMB 200 per tonne, with trading from RMB 455 to 355 contango. Good macroeconomic data and continuous euro zone debt crisis make near-future market mixed, and the attitude is divergent on the market. The sales is always poorer. Many factories came to purchase at a lower price today, but the overall condition is still moderate.

“ According to the trend at present, I think the zinc price is difficult to rise or drop. There is not much room for it to go higher or go lower. We are all giving attention to the changeable trend, so the sales is not very good.” Some zinc trader said to SHMET.

“ We have sold fewer than 200 tonnes of zinc at RMB 15280 per tonne today. The consumption from downstream consumers is moderate, and most people are bearish to the neat-future market, what will hinder the purchasing sentiment and the sales will become poorer.” Another zinc trader said to SHMET.