SHMET Spot Market Briefing 20100226-Lead

Date Feb 26 2010 13:56:36Source:SHMET

China’ s spot Lead products are quoted from RMB 15700 to 15900 per tonne, dropping RMB 200 per tone. Lead prices in domestic market were depressed by the declining LME prices.

“Mills have gradually restarted their production so that we got more enquiries. However consumers were rather cautious due to the dropping market prices. We sold more than 50 tonnes of cargoes today. ”A trader said to SHMET.

“The circulation of average products, such as Yunnan Lead, was few, so that the range of transacted prices were narrow. The lowest price was traded at RMB 15700 per tonne, while Jinsha Lead was traded around RMB 15850 per tonne. We believe that the prices would fall a little in the next few days. ” Another spot trader said.

SHMET Spot Market Briefing 20100226-Aluminum

Date Feb 26 2010 13:56:06Source:SHMET

China’s spot aluminum is quoted between RMB 16200 and 16260 per tonne, decreasing RMB 60, with trading in the range of RMB 210 to 150 contango. With further worries over Greece debt issue, many participants turned to the USD for comfort and subsequently stronger dollars, putting some weight on the industrial metals’ rallies as a result. Spot aluminum drifted lower following the overall trend, and the transaction was still thin without any positive signs. We estimate the market would get some improvement as we come into the March.

“The market is still worried by participants as aluminum consolidates within its ranges. There is little potential for the metal to run up and stabilize at the moment. The main trend is still upward.” A Shanghai-based trader said to SHMET.

“Most consumers are reluctant to buy cargoes right now, and then also feel that further downside moves will be seen. The disappointment of the price move after the New Year has given confidence a little wobble.” Another trader told SHMET.

SHMET Spot Market Briefing 20100226-Copper

Date Feb 26 2010 13:55:33Source:SHMET

Shanghai spot copper is quoted between RMB 57150 and 57600 per tonne, down RMB 250 per tonne, with trading from RMB 500 to 300 contango. The transaction still didn’t get any improvement ahead of the weekend, as most traders were unwilling to sell the cargoes. Recently the global economic recovery has underpinned the copper prices in the medium term, however the adjustment of monetary policy has intensified the consolidation but can not change the mainly upward trend. We expected further consolidation to take place in the short term but uptrend in the longer and medium term.

“We don’t want to make any offer, not only because of the falls in prices but also the widened contango.” A trading source told SHMET. It’s reported that both traders’ shipments and consumers’ consumption have reduced.

“It’s not surprised at current weakness on the spot market, as the consumption has not improved. I believe that there will be a turnaround next month because many traders will come back after the Lantern Festival.” Another trader said to SHMET.

SHMET Spot Market Briefing 20100225-Nickel

Date Feb 25 2010 15:33:59Source:SHMET

China’s spot nickel is quoted from RMB 151000 to 152000 per tonne today, gaining RMB 1000. Jinchuan Nickel is quoted at RMB 152000 per tonne, while Import Nickel is quoted from RMB 151000 per tonne. Today’s enquiries become more on overnight increased LME prices, while the real transaction is not satisfactory. A rise on the LME boosted the domestic nickel prices today, in spite of traders’ improved sentiment. The overall transaction is not very active due to the still weak buying sentiment, resulting from the increased prices.

“ We got more enquiries than preceding days and sold 10 tonnes of Jinchuan Nickel at 152000 yuan per tonne. We don’t want to make any offer in the afternoon because of the lower inventories.” A trader in Shanghai said to SHMET.

“ Despite overnight London positive performance, the volume was not good as anticipated. Today’s sales has improved somewhat but still not active, perhaps owing to the rising domestic prices, which spurred by LME prices.” Another local trader told SHMET.

SHMET Spot Market Briefing 20100225-Tin

Date Feb 25 2010 15:33:26Source:SHMET

China’s spot tin is quoted between RMB 137500 and 139000 per tonne, up RMB 250. Tinti Tin and Yunheng Tin products are quoted around RMB 139000 per tonne, while Yunnan Tin and Yunshan Tin are quoted at RMB 138500 per tonne. There were not many enquiries seen during the AM session, and still some traders had no transactions. The spreads between traders are very narrow. There is little potential for great changes in prices. Furthermore, the supply side is relatively in tight.

“ The lowest prices for Tianti Tin from us is at 139000 yuan per tonne, and mills didn’t bargain, taking in 5 tonnages instantly. However traders all had tentative attitude because they want to buy at lower prices. The lowest price will not be adjusted, so they solely bought two tonnes of materials.” A trader said to SHMET during the AM session.

“ We had sold all the Yunnan Tin products two days ago, and most Yunheng Tin stocks have been sold. Though we have an intention of piling up, the fact is that we may earn no profit due to the rather stable prices from all the suppliers.” Another trader told SHMET.