Comments

Copper – a weaker dollar affects the arbitrage between domestic and foreign markets

Date Jan 15 2018 17:03:57Source:SHMET

Premiums for CIF Shanghai stood at $60-$70while that for shanghai bonded warehouse flatted at $65-$80, a continuing component of previous re-stabilization. LME C-3m valued was $35.75C. SHFE Spot/LME 3M arb stayed steadily at around 7.59, with an import loss of RMB636/mt, whilst 3M SHFE/LME arb may lose RMB 416/mt, with ratio of 7.53.

After a slight increase in inventory last week, prices fell slightly. Currently, import is slightly weaker. Besides the exchange rate, copper trend in foreign market is slightly stronger than that of domestic market, which supported the copper price. Traders make general inquiries in the copper imports market and the market transaction is relatively stable due to the fact that there is a downward trend as financing activity weakens premium.

 

Edited by SHMET

Nickel –overall transactions are light

Date Jan 12 2018 16:51:20Source:SHMET

With regards to NI FP, offers in Shanghai bonded zone keep standing at the range of $300-$350, and so does CIF delivery. The SHFE Spot/LME 3M arb for Russian NI was stable, at 7.84 and that for 3M SHFE/LME at 7.86, equated to a loss of RMB1418 in spot (2%of import tax) and a loss of RMB1758 3M forward.

Today, nickel price is down, Jinchuan has small number of transactions. Russian nickel is cost-effective and its transaction is more active than that of Jinchuan. As it is close to the weekend, the overall transaction in the market is flight with limited trading volumes.The overall transaction in the imports of nickel premium market maintains flat.

Edited by SHMET

Zinc- zinc prices rise slightly

Date Jan 12 2018 16:50:02Source:SHMET

Zinc Premiums in Shanghai bonded, and CIF shanghai saw no change, at $155-$165/mt and $160-$170/mt respectively. Today LME C-3m valued at 26B, while the SHFE Spot/LME 3M arb also retreated to around 7.67, the spot import loss to RMB1349/mt and expanding loss slightly in forward market, around RMB1202/mt lost. Custom duty exempt brands, Australian and Korean, still generate quite a loss of RMB1039/mt in spot import market, but may lose RMB893/mt in forward import.

LME zinc c-3m basis is closing at $26. LME stocks fell quickly, beware of that there will be a squeeze again. Impacted by the environment crackdown, domestic zinc concentrate production is under certain limitation. The tight supply of short-term zinc concentrate continues and the price of spot zinc is expected to rise slightly today, with no improvement in the market. Zinc premium market enquiries are light, with the transactions being general. 

Edited by SHMET

Aluminum – aluminum transaction depressed

Date Jan 12 2018 16:49:31Source:SHMET

Traders reported that spot premiums CIF shanghai remained at level $95-$115 as usual, so did the physical warrants. LME C-3m valued edged to $10.75C. SHFE Spot/LME 3M arb flattened out at 6.80, suggesting importing may lose around RMB2613/mt in spot market and RMB2538/mt in forward market.

U.S. poor economic data disappointed the market and LME overnight aluminum fell $4.Over the weekend, investors are mainly steeping aside, with little market trading. Electrolytic aluminum market sentiment is still depressed, with traders keeping stepping aside.

 

Edited by SHMET

Copper –copper prices do not have deep fall conditions

Date Jan 12 2018 16:47:40Source:SHMET

Premiums for CIF Shanghai stood at $60-$70while that for shanghai bonded warehouse flatted at $68-$80, a continuing component of previous re-stabilization. LME C-3m valued was $37.75C. SHFE Spot/LME 3M arb stayed steadily at around 7.65, with an import loss of RMB313/mt, whilst 3M SHFE/LME arb may lose RMB 557/mt, with ratio of 7.65.

with a steady recovery in the global economy, tight supply expectations for copper concentrate, and a contraction in copper scrap imports, the copper price will move steadily upward in 2018. Dragged by weak consumption in slack season in the short term, pullbacks may occur, but do not have condition of deep fall. Traders make general inquiries in the copper imports market and the market transaction is relatively stable due to the fact that there is a downward trend as financing activity weakens premium.

        

 

Edited by SHMET
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