Editorial

Copper – Some buyers are purchasing at low prices, with a rising sentiment of staying on the sidelines

Date Apr 23 2018 15:07:12Source:SHMET

Premiums for CIF in Shanghai stood at $65-$85, while that for shanghai bonded warehouse flatted at $70-$85. LME C-3m valued was $41C. SHFE Spot/LME 3M arb stayed steadily at around 7.42, with a spot import gain of RMB128/mt, whilst 3M SHFE/LME arb may have a gain of about RMB 10 /mt, with ratio of 7.42.

 

Copper premium in shanghai bonded warehouse is still high, with B/L offer being the main tone in the market. ER copper premium in Chile is at $80-$85/tonne, while SX-EW copper premium is at $68-$78/tonne, with that in Zambia being lower. Some buyers are purchasing at low prices, with a rising sentiment of staying on the sidelines. Overall market transactions are not improved significantly.  

Edited by SHMET

Nickel – inquiries are the main tone in the market, with low purchase sentiment

Date Apr 20 2018 16:40:30Source:SHMET

With regards to NI FP, offers in Shanghai bonded zone keep standing at the range of $230-$250, so is premiums for CIF. The SHFE Spot/LME 3M was at 7.20 and that for 3M SHFE/LME 3M at 7.12. Russian Ni registered a loss of RMB5515 in spot (2%of import tax) and a loss of RMB6980 3M forward.

 

The recent worries about the trade war between China and the US have eased, but the trade friction between the United States and Russia has gradually increased. Concerns over the supply of Russian nickel have prompted nickel prices to continue to rebound. Nickel premium remained high and there were only a few actual transactions. There were many offers for arrivals at the ports in mid-June, and there were more inquiries than purchases, with overall transaction activity being low.

Edited by SHMET

Zinc – social stocks continued to fall, with imports recovered from yesterday

Date Apr 20 2018 16:39:58Source:SHMET

Zinc Premiums in Shanghai bonded warehouse quoted at $135-$145/mt and CIF shanghai stood at $145-$155/mt. Today LME C-3m valued at $14C, while the SHFE Spot/LME 3M arb also retreated to around 7.70, the spot import loss to RMB215/mt and expanding loss slightly in forward market, around RMB845/mt lost. Custom duty exempt brands, Australian and Korean, still generate quite a gain of RMB110/mt in spot import market, but it may lose RMB620/mt in forward import.

 

The demand for zinc was recovered in the second quarter and social zinc ingots stocks and those in the Exchange continued to decline, with some buyers having little imports, but the overall transaction activity has been increased. Most buyers in the market wish to purchase with a low price, limiting the transaction. 

Edited by SHMET

Aluminum – buyers stayed on the sidelines, with the downstream purchasing according to needs

Date Apr 20 2018 16:39:29Source:SHMET

Traders reported that spot premiums CIF shanghai remained at level $120-$140 as usual, so did the physical warrants. LME C-3m valued edged to $9.5B. SHFE Spot/LME 3M arb flattened out at 6.10, suggesting importing may lose around RMB3945/mt in spot market and RMB3760/mt in forward market.

 

As it is close to the weekend, market transactions are more depressed, with sellers actively selling and the downstream purchasing according to their needs. Import losses continued to expand and buyers stayed on the sidelines. In response to US sanctions on Rusal, LME aluminum rose to a seven-year high, with a gain of more 25%. However, its impact has been gradually diluted and the possibility of the market’s short-term return to rationality is large, and Rusal is also actively negotiating with china to find a market. 

Edited by SHMET

Copper –copper warrant price remain high, with CIF shanghai B/L being more popular

Date Apr 20 2018 16:39:01Source:SHMET

Premiums for CIF in Shanghai stood at $65-$85, while that for shanghai bonded warehouse flatted at $70-$85. LME C-3m valued was $42.5C. SHFE Spot/LME 3M arb stayed steadily at around 7.41, with a spot import gain of RMB510/mt, whilst 3M SHFE/LME arb may have a loss of about RMB 30 /mt, with ratio of 7.47.

 

LME copper fell sharply at night market, falling below the $7,000 mark and narrowing the gains during the day. The transaction was not significantly improved from yesterday and good brand copper warrants in shanghai bonded zone remain with a high price. In terms of cost performance, B/L copper is more popular, with market transactions being still weaker.

Edited by SHMET
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