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Nickel-SHMET Spot Market Briefing20150827

Date Aug 27 2015 14:54:36Source:shmet
Aug.27,2015(SHMET)--

LME nickel closed at 9570 dollars, down 1.4%. Remained weak yesterday but there was some good support by consumer buying, some even longer term and by good bookings by stainless steel mills. On the other side were funds which were selling into the market all day. The spreads remained tighter than one should assume under the amount of stock level but all stocks are hedged and hence need to be borrowed against keeping a lid on ocntangos. Shanghai spot nickel was quoted at 74600-75700 rmbs per ton, up 700 from yesterday. Jinchuan nickel traded at 75700 rmbs per ton, Russian nickel traded at 74600 rmbs per ton. Today, the physical price turned to pick up lead to some reluctant sales on the market. Jinchuan back widened somewhat. Traders and downstream were both struggled. Downstream purchase slightly increased but not evidence of stocking in large volume with thin orders from factories as well.


Edited by SHMET

Tin-SHMET Spot Market Briefing20150827

Date Aug 27 2015 14:54:15Source:shmet
Aug.27,2015(SHMET)--

LME tin tumbled further once again had the worst performance in all base metals. It opened in Asia at 14185 dollars with a brief attempt to 14200 dollars in thin trading where selling order was triggered and saw price quickly lost the grip going down below 14000 dollars and never looked back. With a quick dip to 13670 dollars where it was supported price then recovered to 13850 dollars and started range trading. Shanghai spot tin was quoted at 101500-103500 rmbs per ton, down 1250 rmbs per ton. Yunxi tin was at 103500 rmbs per ton, Yunheng was at 103000 rmbs per ton and Yunshan and Yunxiang were at 102500 rmbs per ton, Nanshan and Jinlong were at 101500 rmbs per ton. The physical tin continued falling sharply with the consecutive decline in price causing heavier sidelines sentiment. Current consumption outlook was not positive and traders had to lower prices in a bid to increase sales but downstream purchased cautiously and overall volume was not big.

Edited by SHMET

Zinc-SHMET Spot Market Briefing20150827

Date Aug 27 2015 14:53:56Source:shmet
Aug.27,2015(SHMET)--

LME zinc closed at 1700.5 dollars per ton, down 2.2% with an intraday low of 1686 dollars. The data suggested that inventory reached the highest level since March. Zinc is the same story as the rest of the metals yesterday after the recent stimulus from China this did not stop the market dropping back to lower level’s. Shanghai spot 0# zinc was quoted at 14730-14790 rmbs per ton, down 100 with a back of 275-335 rmbs per ton; 1# zinc was quoted at 14670-14730 rmbs per ton, down 100 with a back of 215-275 rmbs per ton. Today, the physical price of zinc fell and smelters remained normal sales with some domestic physical inventory keeping at high level. The stockiest had strong wills to sell but some investors stayed on the sidelines with Shuangyan and ordinary 0# zinc trading slightly better as we learned from traders but the overall volume was thin.

Edited by SHMET

Lead-SHMET Spot Market Briefing20150827

Date Aug 27 2015 14:53:35Source:shmet
Aug.27,2015(SHMET)--

Shanghai spot lead was quoted at 13280-13400 rmbs per ton, up 30 with trading from 30c to 90b rmbs per ton. LME lead was trading lower overnight wiping out all gains from Tuesday as the excitement for the Chinese rate cut has faded away while Shanghai Composite finished the day 1.3%lower which has renewed the fear over the states of Chinese economy and future demand on metals. Lead opened at 1670 dollars in Asia was quickly under pressure again saw traders cutting exposure back to risk off mode. The fact that the interest rate cut doesn’t seem to be as effective as previous intervention by the Chinese government was indeed a very worrying signal for the market. For SHFE lead contract 1510 suggest establish longs at 13300 rmbs per ton, protect below 13200 rmbs per ton. In domestic physical market, Hengbang was quoted at 13350 rmbs per ton, Chengyuan was quoted at 13340 rmbs per ton. The smelters sales were small and the supply of low-cost lead was difficult to find. Downstream companies cut purchasing due to the fund pressure at month end. Overall trading was modest.

 

Edited by SHMET

Aluminum-SHMET Spot Market Briefing20150827

Date Aug 27 2015 14:53:17Source:shmet
Aug.27,2015(SHMET)--

Shanghai spot aluminum was quoted at 11750-11810 rmbs per ton, up 10 with a contango of 110-50 rmbs per ton. The recent stimulus measures from China seem to be a brief respite but did not change the underlying picture particular in terms of demand. Aluminum opened up at 1556 dollars and then fell to the lows of 1528 dollars to close around this level. News out Century Aluminum Co said that it will idle its smelter in Hawesville, Kentucky. It will be the first aluminum plants to shut in years, with producers felling the effects of sinkijgn prices and increased Chinese exports. SHFE aluminum was in range bound this morning. In domestic physical market, despite some downstream users remained purchasing on demand but the overall trends were flattening out due to the lack of market confidence. Some sellers continued normal sales but the overall trends seemed to be sluggish which caused a small trading volume. This morning the major quotations were at 11790-11810 rmbs per ton. 

Edited by SHMET
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