Editorial

SHMET Spot Market Briefing 20100223-Zinc

Date Feb 23 2010 14:21:45Source:SHMET

Zinc
Shanghai’s spot 1#Zinc products are quoted from RMB 18200 to 18300 per tonne, down RMB 150 per tonne, with trading from RMB 510 to 410 contango. 0#Zinc products are quoted between RMB 18250 and 18350 per tonne, declining RMB 150, and the contango was between RMB 460 and 360. Today’s SHFE Zinc continued yesterday’s downward trend but the fall of the metal is less than previous session. The market sentiment is relatively stable.

“ The transactions are lightly better than yesterday because of the return of traders, but the buying sentiment is still weak.” A trading source said to SHMET.

“ It’s still uncertainty over the near-future market, and it’s unlikely for the metal to fall largely again. The recent market will mainly consolidate to the bottom. If the consecutive downside moves emerge, we will consider taking more cargoes.” Another trader told SHMET.

SHMET Spot Market Briefing 20100223-Lead

Date Feb 23 2010 14:21:10Source:SHMET

Lead
China’s spot lead products are quoted from RMB 16200 to 16400 per tonne, rising RMB 150 per tonne. Compared to other metals, Lead’s prices are more stable. But the transactions remain weak. It is estimated that the metal would keep range bound between RMB 16000 and 16500 per tonne.

“ We got a lot of enquiries from the downstream today. Though the prices rose higher than ex-holiday, we just sell few cargoes .The volume of the transaction was nearly 60 tonnes.” A lead trader said to SHMET.

“ Recently we kept enough stocks, including different kinds of products. Most transactions were completed between traders. We will sell part of cargoes at higher price。” Another trader told SHMET.

SHMET Spot Market Briefing 20100223-Aluminum

Date Feb 23 2010 14:20:34Source:SHMET

Aluminum
China’s spot aluminum is quoted between RMB 16460 and 16500 per tonne, decreasing RMB 10, with trading from RMB 250 to 210 contango. The transactions were still unsatisfactory. Aluminum prices dropped and lost some ground gained earlier following the depressed copper and zinc, weighing on sentiment again. In terms of macroeconomic, worries over Chinese further monetary tightening policies cast a cloud over the market, dampening the aluminum prices. We expect further consolidation to take place over the next few days but uptrend in the longer and medium term.

“ As some consumers finished purchasing activity ahead of the New Year, it’s cost some time to digest the stocks. This situation clearly affected our recent business.” A Shanghai-based trader said to SHMET.

“ I have sold more than 300 tonnages today, with prices at 16490 yuan per tonne. In spite of a large fall in prices today, the sales is still poor. We hope to see a turnaround after the Lantern Festival.” Another trader told SHMET.

The prices in Wuxi are flat Shanghai.

SHMET Spot Market Briefing 20100223-Copper

Date Feb 23 2010 14:18:47Source:SHMET

Copper
Shanghai spot copper is quoted between RMB 57800 and 58200 per tonne, down RMB 750 per tonne, with trading from RMB 350 to 250 contango. Due to the first day of opening after the holidays, the consumption is weak.The copper made a downward revision. In the spot market, the sales is a litter better than yesterday's trade. Though the copper price has dropped yet, the contango didn’t narrowed. The whole sales is still not very good, with not many enterprises buying the goods. In our view, the copper will drop after rebound completed. Of course, we are still optimistic about the trend in the future.

" We have quoted the Jinchuan Copper at RMB 200 contango per tonne this morning, but the sales is poor. With the impending March, I think the condition should become better." A trader said to SHMET.

" The sentiment is obviously sluggish in the spot market, but it could be expected. Because many consumers have not used up all the stocks before the holidays, it can be understood that they won't purchase more copper." Another trader told SHMET.

SHMET Spot Market Briefing 20100222-Nickel

Date Feb 22 2010 14:16:58Source:SHMET

Nickel
China’s spot nickel is quoted from RMB 155500 to 156500 per tonne today, gaining RMB 10500. Jinchuan Nickel is quoted in the range of RMB 156000 and 156500 per tonne, while Import Nickel is quoted at RMB 155500 per tonne. Jinchuan Group lifted its nickel prices to RMB 158000 per tonne during the Chinese New holidays.

“London performed robust during the Chinese New Year, and afterward domestic prices track the LME moves. After Jinchuan Group lifted prices to 158000 yuan, we quoted Jinchuan Nickel at the same level this morning but the transactions were thin. We had to cut the price to 156000 yuan, and therefore sold several tonnages. Import Nickel was trading at 155500 yuan per tonne, while the sales was still weak.” A trader in Shanghai said to SHMET.

“The offer prices were rather mixed today perhaps due to the first trading day after the New Year break. Most people chose to hold prudent attitude. I believe that the rise in Jinchuan Group’s prices is too high. If the LME Nickel moved lower at night, the domestic prices would drop.” Another local trader told SHMET.