Editorial

Spot imports remain profitable

Date Oct 18 2018 16:10:56Source:SHMET

SHANGHAI, Oct 18 (SHMET) – LME cash nickel was at a lower contango against LME 3M nickel. The refined nickel spot import remains profitable on October 18. SHFE inventory declined, and imported nickel dominated market supplies. Spot Russian nickel premium rebounded amid weak SHFE nickel. Losses on three month refined nickel continue to widen. Premiums for under bill of lading in Shanghai stood at $200-280/mt cif and those for warrants in Shanghai bonded warehouse quoted at $220-280/mt cif.

The SHFE Spot/LME 3M was at 8.43 and that for 3M SHFE/LME 3M at 8.20. Russian nickel registered an import profit of 552 yuan/mt in spot market (2%of import tax) and a loss of 2,260 yuan/mt in forward market.

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Losses of zinc imports expand

Date Oct 18 2018 15:34:59Source:SHMET

SHANGHAI, Oct 18 (SHMET) – Premiums for SMC brand zinc ingots in domestic spot market remained firm, further narrowing its spread against domestic zinc ingots. The import price ratio shrunk sharply, and expansion of import losses resulted in thin trades on October 18. Premiums for B/L Shanghai stood at $190-$210/mt cif and those for warrants in Shanghai bonded warehouse quoted at $210-$230/mt, unchanged from October 17.

LME cash zinc was at a higher backwardation of $45.5/mt against LME 3M zinc. For brands not exempted from customs tariff, the SHFE /LME cash price ratio came in at 8.37, and at 8.41 for duty-free Australia, South Korea brand zinc ingots, a sharp decline from a day earlier. For brands not exempted from customs tariff, spot import losses stood at 992 yuan/mt, and 1,100 yuan/mt in forward import. For duty-free Australia, South Korea brand products, spot import losses registered at 800 yuan/mt, and 1,032 yuan/mt in forward import. 

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Edited by SHMET

Import losses of aluminum rises to 3,018 yuan/mt

Date Oct 18 2018 15:16:51Source:SHMET

SHANGHAI, Oct 18 (SHMET) –Import losses of aluminum remained above 3000 yuan/mt on October 18, as SHFE/LME cash aluminum ratio fell from yesterday. LME aluminum hovered around periodic lows.

In the aluminum market, premiums for goods under bill of lading in Shanghai held at $95-$115/mt cif, and those for goods under warrants in Shanghai bonded warehouse stood at $95-$115/mt cif. The SHFE /LME cash aluminum ratio registered at 7.01, and this created spot import losses at around 3,018 yuan/mt, and losses of 3,103 yuan/mt in forward market. LME cash aluminum was at contango of $7.75/mt against LME 3M aluminum.

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Stronger US dollar index to weaken lead prices

Date Oct 18 2018 11:17:32Source:SHMET

SHANGHAI, Oct 18 (SHMET) – Lead prices are expected to extend declines on October 18, given a rising dollar and strong watch-and-wait sentiment. On October 17’s night trading, SHFE three-month lead 1811 contract opened at 18,630 yuan/mt, remaining below the 5-day moving average, and closed at 18,635 yuan/mt amid weak LME lead, down 100 yuan/mt or 0.53%. Transactions decreased by 21860 lots to 22,432 lots. Open interest increased by 416 lots to 50,474 lots.

US Federal Reserve’s September meeting minutes released the hawkish signal, as most of the committee members favored raising the benchmark interest rate to above the neutral interest rate. The US dollar index rose sharply as a result.

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Zinc price may rebound

Date Oct 18 2018 11:07:34Source:SHMET

SHANGHAI, Oct 18 (SHMET) – Zinc market is likely to rally on Thursday October 18 after a three-day losing streak in spot market.

On October 17’s night trading, SHFE zinc rose sharply after a high open, recovering some losses. SHFE 1811 contract opened 22,380 yuan/mt and closed at 22,765 yuan/mt, up 480 yuan/mt or 2.15% from the previous trading day. Transactions reached 267,552 lots, and open interest stood at 167,352 lots, with an increase of 7,980 lots.

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