Copper –SHFE electrolytic copper fell to low level, with market purchasing inactive

Date Jan 08 2018 17:48:17Source:SHMET

Premiums for CIF Shanghai stood at $65-$80while that for shanghai bonded warehouse flatted at $73-$83, a continuing component of previous re-stabilization. LME C-3m valued was $42C. SHFE Spot/LME 3M arb stayed steadily at around 7.68, with an import loss of RMB130/mt, whilst 3M SHFE/LME arb may lose RMB399/mt, with ratio of 7.68.

LME copper edged higher on Monday, off a two-week low, but still far from a four-year high. Traders ended their holiday and returned to the market as there is an adjustment for the dollar’s fall and the resilience of Chinese demand. SHFE dominant copper 1802 contract fell 0.86 per cent to CNY54,460 a tonne, after hitting its lowest level since December 25. At present, shanghai bonded mainstream pyro copper offer is at $76B, with actual transaction being negotiable. CIF shanghai pyro copper offer is at around $73/tonne, with most traders purchasing according to their needs. The overall activity in the market has seen no recovery.


Edited by SHMET

Nickel – NPI profit still exist, with small amount of nickel warrants

Date Jan 05 2018 17:30:51Source:SHMET

With regards to NI FP, offers in Shanghai bonded zone keep standing at the range of $350-$400, and so does CIF delivery. The SHFE Spot/LME 3M arb for Russian NI was stable, at 7.79 and that for 3M SHFE/LME at 7.85, equated to a loss of RMB2407 in spot (2%of import tax) and a loss of RMB2161 3M forward.

NPI at the supply side has profits and major electrolytic nickel producers are increasing production. De-stocking is weaker and nickel is less economical than NPI, with low inventory and small amount of warrants. The overall transaction in the imports of nickel premium market maintains flat.

Edited by SHMET

Zinc – LME C-3M closing above 20, with domestic demand weaker

Date Jan 05 2018 17:30:25Source: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 22.5B, while the SHFE Spot/LME 3M arb also retreated to around 7.70, the spot import loss to RMB1219/mt and expanding loss slightly in forward market, around RMB1233/mt lost. Custom duty exempt brands, Australian and Korean, still generate quite a loss of RMB913/mt in spot import market, but may lose RMB927/mt in forward import.

LME zinc c-3m base is closing at $22.5, and the market seems to want to get back into the squeeze. Under the background of the weak consumption in winter, the production of galvanized mills is limited, with the operation rate gradually declining and domestic zinc premium showing recovery. This caused a slight insufficient momentum for short-term domestic zinc price increase. Zinc premium market enquiries are light, with the transactions being general. 

Edited by SHMET

Aluminum –big contango with hedge pressure and high inventory difficult to ease

Date Jan 05 2018 17:29:49Source: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 $15C. SHFE Spot/LME 3M arb flattened out at 6.62, suggesting importing may lose around RMB3049/mt in spot market and RMB2858/mt in forward market.

The current price is facing a pressure of hedge, with a big contango. As it is close to delivery, the price is under pressure. It is necessary to continue paying attention to whether the production of illegal electrolytic aluminum is discontinued. In terms of consumption, the high inventory has not been alleviated. Electrolytic aluminum market sentiment is still depressed, with traders keeping stepping aside.


Edited by SHMET

Copper – approval of restricting scrap copper imports stimulates price, with downstream not active i

Date Jan 05 2018 17:29:23Source: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 $42.75C. SHFE Spot/LME 3M arb stayed steadily at around 7.64, with an import loss of RMB320/mt, whilst 3M SHFE/LME arb may lose RMB632/mt, with ratio of 7.64.

Impacted by the approval of restricting the imports of scrap copper published in the first batch and second batch, import volume decreased by 94% from the previous year, causing SHFE copper turning higher. However, the market further studies the data with a certain chance, and then the copper price falls back. The contango has narrowed sharply, but the terminal factories are not active in buying. Traders make general inquiries in the copper imports market and the market transaction is more stable.


Edited by SHMET