Editorial

Lead price declines

Date Oct 18 2018 17:53:45Source:SHMET

SHANGHAI, Oct 18 (SHMET) – Mainstream offers in Shanghai spot lead market were at 18,780-18,930 yuan/mt, down 115 yuan/mt from the previous trading day, which had a premium 100-300 yuan/mt compared with 1811 contract. 

Jinsha lead quoted with a premium of around 300 yuan/mt compared with 1811 contract. Nanfang brand lead quoted with a premium of 150 yuan/mt compared with 1811 contract. Haqian brand quoted with a discount of 100-0yuan/mt compared with 1811 contract.  

Downstream consumption was slightly lower than that before the Chinese National day holiday. Downstream plants chose to purchase secondary lead due to its price advantage. This left thin trades in spot nickel market. It was reported that lead supply in west China was slightly tight, but  demand also weakened, leaving quiet trades.

Spot prices fell after SHFE lead slid for a third consecutive day. A strong watch-and-wait sentiment prevailed the market. The lead market showed a sign of weakening, but it still needed time to prove.

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Edited by SHMET

Nickel price probes short side and spot market presents mixed sentiments

Date Oct 18 2018 17:34:49Source:SHMET

SHANGHAI, Oct 18 (SHMET) – Spot nickel prices were offered at 102,400-108,400 yuan/mt on Thursday October 18, down 600 yuan/mt. Spot premium for Jinchuan nickel came to 6,200 yuan/mt compared with Wuxi 1811 contract, and 6,450 yuan/mt compared with SHFE nickel three-month contract. Russian nickel saw premium of 200 yuan/mt compared with Wuxi 1811 contract, and was at a premium of 450 yuan/mt over with SHFE nickel 1901contract.

On October 18’s morning trading, spot price kept going down. Some downstream enterprises chose to replenish stocks at lower price. However, highest premium of Jinchuan nickel today saw growth of 500 yuan/mt from prior day’s offer with tight resources.

On the macro side, stronger US dollars weigh on base metals. LME nickel price has fallen down for several consecutive days and tried to look for support at $12,000/mt. This also weighed on SHFE nickel, and some traders turned cautious in offering as a result.

Domestic inventory of refined nickel extended its decline. Spot supplies of Jinchuan nickel remained tight, and many traders held offers firm, despite that Jinchuan Group cut  nickel ex-works for several days in a row. This left price gap over imported nickel remained large.

In the NPI market, production may be restricted by power supply cuts at producers in Inner Mongolia. Stainless steel enterprises purchased nickel as required and transactions were stable. It was heard that NPI inventory increased, which may be a negative factor for nickel price.

To sum up, imported nickel dominated market supplies, and falling prices triggered market caution, but some traders held offers firm.

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Zijin Mining expected to produce 37 mt of gold in 2018

Date Oct 18 2018 17:26:54Source:SHMET

SHANGHAI, Oct 18 (SHMET) – Gold output is expected to be 37 mt in 2018, Chen Jinghe, Chairman of Zijin Mining, said on Thursday.

The output this year could be roughly flat or slightly lower than 2017 output. Gold mine project in Tanzania has been the company’s focus, though negotiations on the project haven’t started.

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Edited by SHMET

SHFE copper price to hover around 50,000 yuan/mt shortly

Date Oct 18 2018 17:21:22Source:SHMET

SHANGHAI, Oct 18 (SHMET) –SHFE copper kept its rangebound trading in the morning session, and traders were active in sales, and slightly cut offers. Inquires increased, but trades remained quiet. The import market was also lackluster, with premiums lower. Spot copper price in Shanghai market was quoted at 50,160-50,360 yuan/mt, up 160 yuan/mt, or at a discount of 70 yuan/mt-40 yuan/mt against 1811 contract.

US dollar continued to strengthen as further interest rate hike is expected according to FED conference. According to FED conference, US dollar may see further interest rate hike, which strengthened and LME copper lost 1% in Asia trading hours. SHFE copper 1811 contract closed slightly lower. Positions of SHFE 1812 copper contract added 3,010 lots to 146,562 lots, with  price closing below 50,000 yuan/mt.

SHFE copper is predicted to hover around 50,000 yuan/mt in short run. Macro news should be closely followed.

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SHFE aluminum continues to look for direction

Date Oct 18 2018 16:44:29Source:SHMET

SHANGHAI, Oct 18 (SHMET) –Investors are suggested to stand on sidelines in the short term as SHFE aluminum continued to test 14,000 yuan/mt. 

SHFE 1812 aluminum contract slid to a 3-month low of 14,015 yuan/mt on October 18, down more than 1%.

In the Shanghai spot market, aluminum was quoted at 14,070-14,110 yuan/mt the same day, down 200 yuan/mt from previous trading day. Spot aluminum held unchanged at a discount of 70 yuan/mt to 30 yuan/mt against SHFE aluminum 1811 contract. The middlemen were reluctant to purchase and downstream buyers purchased as required, which resulted in a quiet spot market.

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