SHMET Spot Market Briefing 20100526-Zinc

Date May 26 2010 15:08:08Source:SHMET

Shanghai 0#Zinc is quoted between RMB 15450 and 15550 per tonne, down RMB 50 per tonne, with trading from RMB 330 to 230 contango; 1#Zinc is quoted between RMB 15400 and 15500 per tonne, down RMB 50 per tonne, with trading from RMB 380 to 280 contango. Both USD and Euro debt crisis continued to put pressure to the commodity market, but owing to the wide drop range on the SHFE market before, the price has got a technical rebound trend in the earlier AM session. But it’s weak to rebound then. Due to the serious wait-and-see attitude, downstream consumers are unwilling to purchase goods at a higher level and the sales is thin.

“ SHFE zinc seems to lack the guidance today, and the trend is so mixed. We quoted the price with RMB 280 contango of the benchmark contract, but there are not many factories come to purchase goods.” Some zinc trader said to SHMET.

“ Downstream consumers’ consumption capacity is weaker as well as most insiders have bearish attitude toward to the market now, so more factories are willing to wait for the near-future market. The sales is not very nice.” Another zinc trader said to SHMET.

SHMET Spot Market Briefing 20100526-Lead

Date May 26 2010 15:07:32Source:SHMET

China’s spot Lead is quoted from RMB 14650 to 14850 per tonne, down RMB 150 per tonne. Euro debt crisis hasn’t been solved yet, so it will put pressure to LME metal market in the short term. Both rising USD and dropping crude oil are bad for the market. Today domestic spot lead price has been moved down following LME price. Insiders are still very worried , so they are prudent on the market.

“ Lead price was not very volatile, so downstream consumers always purchase goods when they need. Relatively speaking, there are less condition of purchase goods at higher level or lower level. Our trading volume is still around 100 tonnes today. It’s moderate.” Some lead trader said to SHMET.

“ The panic sentiment on the LME market is very serious, what has got domestic spot price into trouble. The consumption of downstream consumers has been in the thin season, and our trading volume is inferior to the mid-level every day.” Another lead trader said to SHMET.

SHMET Spot Market Briefing 20100526-Aluminum

Date May 26 2010 15:07:04Source:SHMET

China’s spot Aluminum is quoted from RMB 14890 and 14930 per tonne, decreasing RMB 20 per tonne, with trading from RMB 70 to 30 contango. Euro debt crisis put much pressure to the Euro, and the oversupply situation on the aluminum market also weakened factors of cost supporting. Aluminum price still can not get rid of the shorts environment and lacking of the energy to go higher.

“ The consumption of downstream consumers is still nicer at present, but market trend is weaker, so as that factories are all very hesitate to purchase goods. We have sold only 700 tonnes of goods. The sales should be better if the aluminum price touch the bottom and drift lower again.” An aluminum trader said to SHMET.

“ We have chiefly sold goods at RMB 14900 per tonne. The quotation on the market is relatively lower and we haven’t got much goods in our hands. We think that near-future market will still consolidate at a lower level.” Another spot trader said to SHMET.

SHMET Spot Market Briefing 20100526-Copper

Date May 26 2010 15:06:36Source:SHMET

China’s spot copper is quoted between RMB 54850 and 55150 per tonne, down RMB 50, with trading from RMB 50 to 150 backwardation. Repurchase rate between banks ticked higher recently, indicating tense liquidity in the market. However the selling rate from China Central Bank has kept 18 weeks stable, which showed the cautious attitude of Central Bank.

“ There was no any positive or negative news in the short term. The euro debts issues that made the great impact on the market were still in suspension. The overall metal market consolidated on downside and there would be some rebound in the short term.” A trader said to SHMET.

“ Copper product was completed at RMB 55000 per tone. Sice copper price got a weaker rebound in the AM session, we sold cargoes in active. We didn’t plan to replenish our stocks at prevailing price. We expected that copper would drop further into dip in the future. ” Another trader said to SHMET.

SHMET Spot Market Briefing 20100524-Nickel

Date May 24 2010 14:29:31Source:SHMET

China’s spot nickel is quoted between RMB 167500 and 168500 per tonne, up RMB 500. The transaction was moderated in the AM session. Market sentiment and purchasing enthusiasm in the domestic market was buoyed by hiking LME Nickel in the AM session, which also gave a lift to Jinchuan Nickel. Nickel price was propelled to RMB 169000 per tonne.

“ Following higher moves on the LME, the transaction was moderate in the AM session. Jinchuan Nickel was completed at RMB 168500 per tonne early. We lifted our offer-price after stronger momentum on the LME, completing at RMB 169000 per tonne. ” A trader said to SHMET.

“ We had thought that it would be some pressures at RMB 168500 per tonne. It was out of expectations that LME got more gains later. With more enquires, we raised our price to RMB 169000 per tonne on the bullish sentiment in the AM session. ” Another trader said to SHMET.