Editorial

Zinc price remains under pressure

Date Oct 19 2018 11:01:01Source:SHMET

SHANGHAI, Oct 19 (SHMET) – Lowering spot premiums may encourage the shorts to enter the market. Zinc price may remain under pressure on October 19. 

On October 18’s night trading, SHFE zinc fluctuated at a low level after a dive. SHFE 1811 contract opened at 22,530 yuan/mt and closed at 22,310 yuan/mt, down 245 yuan/mt or 1.09% from a day earlier. SHFE zinc had support in the 10-day moving average. Transactions reached 225,582 lots, and open interest stood at 145,786 lots, with a decline of 5,162 lots.

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Edited by SHMET

Lead prices continue to decline

Date Oct 19 2018 10:47:32Source:SHMET

SHANGHAI, Oct 19 (SHMET) – Spot price in domestic lead market may drop by 150 yuan/mt on October 19. SHFE three-month lead contract, running between 10-day and 20-day moving averages, is likely to test 18,350 yuan/mt the same day. A wait-and-watch stance is recommended.

 

On October 18’s night trading, SHFE three-month lead 1811 contract opened at 18,435 yuan/mt and closed at 18,425 yuan/mt, down 200 yuan/mt or 1.07%. Transactions decreased by 30,208 lots to 20,620 lots. Open interest decreased by 540 lots to 44,952 lots.

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Edited by SHMET

Trading of spot nickel to be moderate

Date Oct 19 2018 10:22:14Source:SHMET

SHANGHAI, Oct 19 (SHMET) –Trading of spot nickel is expected to be moderate on October 19, as downstream enterprises purchased as required after recent price declined. End-user stockpiling over the weekend will also support trades.

SHFE nickel, which moved higher after a low open, is likely to meet resistance today. Worries about China’s economic growth, will weigh on industrial metal industry in the short term. Rising NPI output in China will also exert a negative impact on nickel industry.

SHFE 3M nickel contract closed at 101,810 yuan/mt, up 50 yuan/mt or 0.05%.

In addition, China’s GDP could also be a focus today.

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SHFE copper poses weak performance

Date Oct 19 2018 09:28:11Source:SHMET

SHANGHAI, Oct 19 (SHMET) – SHFE copper was in the doldrums and hovered around 50,000 yuan/mt, given nagging trade friction, grim demand outlook and more interest rate hike expectation by the US Federal Reserve. Newly added capacity and developments of macro data should be closely followed.

SHFE 1812 copper rose mildly after opening at 49,720 yuan/mt on October 18’s night trading, with high-end at 50,130 yuan/mt and low-end at 50,010 yuan/mt, down 140 yuan/mt or 0.28%.

Transactions were at 98,304 lots and open interest increased 904 lots to 147,466 lots.  

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Zinc trades mainly happen among traders

Date Oct 18 2018 18:14:09Source:SHMET

SHANGHAI, Oct 18 (SHMET) - Spot nickel prices were offered at 22,650-22,750 yuan/mt, down 30 yuan/mt from the previous trading day, and at a premium of 80-180 yuan/mt compared with SHFE zinc 1811 contract. 1# zinc was offered at 22,590-22,690 yuan/mt, down 30 yuan/mt from the previous trading day, and at a premium of 20-120 yuan/mt compared with SHFE zinc 1811 contract.

For imported brand, SMC zinc ingot was quoted at a premium of 110-130 yuan/mt compared with 1811 contract. Spanish zinc ingot held unchanged over 1811 contract. Haxin zinc ingot  was at a discount of around 100 yuan/mt compared with 1811 contract.

On October 18’s morning trading, cargo holders lowered premiums after SHFE zinc jumped on October 17’s evening trading. Imported brands, such as SMC, posted a smaller decline in premium compared with domestic ordinary zinc premium. This narrowed the spread between them. Downstream producers showed more interest in domestic zinc, and this pushed Spanish zinc ingot closer to offer at a discount. Trades for  domestic zinc were moderate.

Zinc price may continue its rangebound trading.

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