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Aluminum - SHMET Import Market Briefing

Date Nov 07 2017 16:48:24Source: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 $19C. SHFE Spot/LME 3M arb flattened out at 7.41, suggesting importing may lose around RMB1641/mt in spot market and RMB1646/mt in forward market.

Impacted by supply-side reform and heating season policy, the overall electrolytic aluminum output growth will decline, while due to the slowdown in real estate, automobiles, electric power and other areas, electrolytic aluminum consumption growth has a downside risk. Today, electrolytic aluminum market sentiment remains weak and downstream enterprises are mainly purchasing on-demand. There is no obvious increase in the trading volumes, with speculators keeping stepping aside for the time being.

 

 

Edited by SHMET

Copper - SHMET Import Market Briefing

Date Nov 07 2017 16:47:34Source:SHMET

Premiums for CIF Shanghai stood at $65-$75while that for shanghai bonded warehouse flatted at $65-$80, a continuing component of previous re-stabilization. LME C-3m valued was $33C. SHFE Spot/LME 3M arb stayed steadily at around 7.85, with an import gain of RMB157/mt, whilst 3M SHFE/LME arb may lose RMB398/mt, with ratio of 7.87.

After the plight of Copper prices decline in 2011, the rise of copper prices this year finally let the producers to take profits. According to the s&p global market think tank analysis, the profit margin of mining enterprises will increase further in 2018. Copper prices have risen 24% since early this year, up 58% compared with the record low price of $1.96 per lb in January, 2016. Today traders responded that recent market is mainly with enquiries, with actual purchase quantity being limited. The transactions in the market are flat.

Edited by SHMET

Nickel - SHMET Import Market Briefing

Date Nov 06 2017 16:44:56Source:SHMET

With regards to NI FP, offers in Shanghai bonded zone keep standing at the range of $320-$380, and so does CIF delivery. The SHFE Spot/LME 3M arb for Russian NI was stable, at 8.02 and that for 3M SHFE/LME at 7.98, equated to a loss of RMB590/mt in spot and a loss of RMB1583/mt 3M forward.

The nickel market transactions are weak and Russian nickel premium maintains its high premium with traders buying at a low price for stockpiling. Nickel price of Shanghai bonded warehouse is higher. The whole market transactions are flat, with small trading volumes.

 

 

                                                                                    

Edited by SHMET

Zinc - SHMET Import Market Briefing

Date Nov 06 2017 16:44:15Source:SHMET

Zinc Premiums in Shanghai bonded and CIF shanghai saw no change, at $175-$185/mt and $180-$190/mt respectively. Today LME C-3m valued at $32B high while the SHFE Spot/LME 3M arb also retreated to around 8.02, the spot import loss to RMB890/mt and expanding loss slightly in forward market, around RMB1117/mt lost. Custom duty exempt brands, Australian and Korean, still generate quite a loss of RMB625/mt in spot import market, but may lose RMB850/mt in forward import.

LME aluminum price declined last Friday, softened because of the increase of stocks. Previously, it was sharply boosted by the expectations of the increase of demand for EVs. The actual market consumption is weak and speculators are mainly stepping aside. Spot zinc has a lot of stocksThere is no significant improvement in recent market, which is still inactive.

 

Edited by SHMET

Aluminum - SHMET Import Market Briefing

Date Nov 06 2017 16:43:34Source: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 $19C. SHFE Spot/LME 3M arb flattened out at 7.33, suggesting importing may lose around RMB1855/mt in spot market and RMB1710/mt in forward market.

The sharp rise in raw material costs in recent months of international aluminum giants has weakened aluminum producers' profits. LME aluminum prices this year has risen 25%, boosting the earnings of aluminum producers. However, it is weakened by a recent rise in the cost of raw materials such as aluminum oxide, sodium hydroxide, carbon electrode. Today, purchasers are mainly stepping aside for the time being, with premium quotations holding steady. Downstream enterprises are mainly purchasing on-demand.

 

Edited by SHMET
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