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Zinc - SHMET Import Market Briefing

Date Dec 08 2017 18:07:23Source: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 $1.75B high while the SHFE Spot/LME 3M arb also retreated to around 7.98, the spot import loss to RMB907/mt and expanding loss slightly in forward market, around RMB1067/mt lost. Custom duty exempt brands, Australian and Korean, still generate quite a loss of RMB615/mt in spot import market, but may lose RMB744/mt in forward import.

The latest data from Antaike shows that the refoined zinc ouyput in November was 423000 tonnes, decreased by 1.5% YOY. However, as the supply of zinc concentrate is tightening, domestic zinc smelting overhaul  production cuts increased, which will cause a low level of zinc ingot stocks largely.There are many customers’ inquiries in the market, with transactions being general.

Edited by SHMET

Aluminum - SHMET Import Market Briefing

Date Dec 08 2017 18:06:43Source: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 $18C. SHFE Spot/LME 3M arb flattened out at 6.97, suggesting importing may lose around RMB2465/mt in spot market and RMB2391/mt in forward market.  It is in the heating season now, product limit policy in all regions have periodically implemented, with the change in the supply side basically remain stable. The demand side has become increasingly strict to environmental protection requirements. This wa accompanied by the shortage of natural gas, the willingness to increase production is not strong and the demand is weak. Electrolytic aluminum market sentiment is still depressed and the trading volumes have no obvious increase, with traders keeping stepping aside.

 

 

Edited by SHMET

Copper - SHMET Import Market Briefing

Date Dec 08 2017 18:05:42Source:SHMET

Premiums for CIF Shanghai stood at $65-$80while that for shanghai bonded warehouse flatted at $75-$85, a continuing component of previous re-stabilization. LME C-3m valued was $34C. SHFE Spot/LME 3M arb stayed steadily at around 7.5, with an import loss of RMB138/mt, whilst 3M SHFE/LME arb may lose RMB415/mt, with ratio of 7.84.

LME copper inventory increased by 300 tonnes to 193,975 tonnes. Customs generation: Chinese imports of unwrought copper and copper products in November was 480000 tonnes, hitting the highest in December, 2016. Chinese unwrought copper and copper products imports from January to November decreased by 5% YOY to 424000 tonnes. Since import window maintained at a small profit situation, imports increased. Meanwhile, this to some extent eased the domestic high premium in October, domestic inventory is expected to be in an accumulation period in the subsequent sessions. The import traders make inquiries and the market transaction is more stable.  

 

Edited by SHMET

Nickel - SHMET Import Market Briefing

Date Dec 07 2017 16:50:56Source:SHMET

With regards to NI FP, offers in Shanghai bonded zone keep standing at the range of $300-$360, and so does CIF delivery. The SHFE Spot/LME 3M arb for Russian NI was stable, at 8.08 and that for 3M SHFE/LME at 8.01, equated to a gain of RMB16 in spot and a loss of RMB1086 3M forward.  

The supply side needs to continue to see if Indonesia’s export quotas are being cancelled, while on the demand side, the whole market remains weak. Currently, steel trade enterprises and steel mills insisted on a high price and there was a concentrated purchase at the beginning of the month ,so the demand side will appear a stabilizing rebound in the weak situation. The overall transaction maintains flat in the nickel premium market.   Edited by SHMET

Zinc - SHMET Import Market Briefing

Date Dec 07 2017 16:50:17Source: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 $14.5B high while the SHFE Spot/LME 3M arb also retreated to around 8.02, the spot import loss to RMB779/mt and expanding loss slightly in forward market, around RMB1181/mt lost. Custom duty exempt brands, Australian and Korean, still generate quite a loss of RMB486/mt in spot import market, but may lose RMB887/mt in forward import.  

Due to environmental protection and seasonal factors, the overall weak trend in domestic zinc consumption has not changed. However, as the supply of zinc concentrate has tightened, the production cutbacks caused by domestic zinc smelting overhaul from December to January next year will be increased, so the domestic zinc ingot inventory has maintained at low levels in the near term. There are many customers’ inquiries in the market, with transactions being general.

Edited by SHMET
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