LME nickel closed at 9710 dollars, up 2%. We saw some
recovery from the lows of Monday but still an underlying weak sentiment. The
contango narrowed a bit mainly due to some much stock being rolled forward day
by day. Demand for material in Asia remained good as Shanghai still showed around $ 160 over LME
for January. Other than Copper it should be a bit more difficult for Nickel to
climb back higher again. Shanghai
spot nickel was quoted at 74300-75000 rmbs per ton, down 300 from yesterday.
Jinchuan nickel traded at 75000 rmbs per ton, Russian nickel traded at 74300
rmbs per ton. The price gap between Jinchuan and Russian nickel widened today.
The price of physical nickel fell which lead to a heavier cautious sentiment on
the market. The quotations were mixed this morning, downstream had less wills
to buy due to the fear-down sentiment. Overall trading was modest.
LME tin first went up in Asia
with a strong rebound to $14400 while traders squaring short positions to take
quick profits from the previous days sharp selloff. Price then returned to
lower range trading in side-lines until Chinese Central Bank announced the
interest rate cut that propped another round of rally, however, surprisingly
Tin didn’t react as strong as the rest of metals only rose marginally to just
above $14300 before quickly came down to new intraday low at $14100. Shanghai spot tin was
quoted at 102500-105000 rmbs per ton, down 750 rmbs per ton. Yunxi factory gate
unchanged from yesterday. Yunshan and Yunxiang were at 103500 rmbs per ton.
Nanshan and Jinlong were at 102500 rmbs per ton. Today, the spot tin continued
falling and market sentiment was still bearish. The traders were selling
actively but downstream was not optimistic on the outlook mostly remained on
the sidelines. Hence the overall trading was limited.
After the panic-selling following a sell-off on the
equities market dubbed as China's
"black Monday" metals picked up as news came out that China
cut its benchmark interest rates. Zinc rose to a high of $1757 from the lows of
$1698. Spread wise there is still a tightness in Sep for one day and two day,
also Oct for one day and two days. LME Stocks rose 2.800 tonnes to 525,550
spot zinc 0# was quoted at 14830-14890 rmbs per ton, up 40 with a back of
360-420 rmbs per ton; 1# zinc was quoted at 14770-14830 rmbs per ton, up 40
with a back of 300-360 rmbs per ton. Today, most Shuangyan zinc traded at about
14870 rmbs per ton. Current physical price was still high for the downstream
hence the buyers were not many. Meanwhile, downstream consumption was sluggish
continuously. The volume of orders was small. Shuangyan and 0# zinc traded
slightly better than other brands but overall volume was thin.
spot lead was quoted at 13250-13370 rmbs per ton, up 20 with a back of 5b-125b
rmbs per ton. LME lead rose to recover from the panic sell off in the previous
day with price correcting back to $1695 at its highest. It was another roller
coaster ride for metals as price first edged up in Asia and then lost steam
just about to go downhill again, when Bank of China finally stepped in to
announce the 0.25% interest rate cut that market has longed for, the 5th rate
cut in the past 12 month has boosted sentiment and saw metals quickly picked up
from the low and Lead went up to $1695 before settling lower at $1685. SHFE
lead back to upward cycle once again due to the ‘double cut’ policy from the
central bank of China.
The market sentiment obviously got warm. Suggest for SHFE 1510 contract buy
longs at 13300 rmbs per ton, protect below 13200 rmbs per ton. The physical
lead price seemed firm, Nanfang and Hengbang kept selling but the low-cost
supply was difficult to find, downstream remained purchasing on demand. Overall trading was moderate.
spot aluminum was quoted at 11740-11800 rmbs per ton, down 30 with a contango
of 105-45 rmbs per ton. The quotations in Wux were at 11770 rmbs per ton. LME
aluminium opened up on the low of the day $1525 by mid-morning prices picked up
to a high of $1563 after news out that China cut its benchmark interest rates,
this raised hopes the move will help the economic growth and increase demand.
The one-year lending rate will drop by 25 basis points to 4.6 percent effective
Wednesday, the Beijing-based People’s Bank of China said on its website today.
The one-year deposit rate will fall by 25 basis points to 1.75 percent. SHFE
aluminum was volatile with weakness this morning. In domestic physical market,
the fundamental was still not good and hence it could not provide any support
to the price. Some people believed that short term aluminum price would remain
weakness. The merchants continued to sell as normal and even attracted buyers
by lowering price but the volume was limited, current lowest prices were at
about 11770 rmbs per ton. Despite some users remained purchasing but overall
buying appetite was not high. Major quotations were at 11750-11790 rmbs per ton.
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