Editorial

Zinc – general trade imports depressed, with a rising sentiment of sitting on the sidelines

Date Apr 16 2018 17:42:58Source:SHMET

Zinc Premiums in Shanghai bonded warehouse quoted at $125-$135/mt and CIF shanghai stood at $135-$145/mt. Today LME C-3m valued at $11C, while the SHFE Spot/LME 3M arb also retreated to around 7.71, the spot import loss to RMB147/mt and expanding loss slightly in forward market, around RMB828/mt lost. Custom duty exempt brands, Australian and Korean, still generate quite a loss of RMB184/mt in spot import market, but it may lose RMB577/mt in forward import.

Traders said that there are a lot of inquiries in the market, with limited actual purchase. General trade imports are not much, with some traders buying cargoes of low price, but the cargo holders are reluctant to sell by reducing their cost and the whole market is on the sidelines. Reports from domestic market said that downstream zinc demand in the second quarter is recovered, with social stocks continuing to fall. Currently, imported zinc shows small profit, which may increase domestic supply of zinc ingots. In addition, high zinc price leads to the reproduction of the idle capacity of zinc mines. The market expectation that the supply of zinc ore will be loosened is growing stronger. 

Edited by SHMET

Aluminum – Fundamentals provide no support for the rise of the aluminum price copper B/L being more popular

Date Apr 16 2018 17:42:21Source:SHMET

Traders reported that spot premiums CIF shanghai remained at level $120-$140 as usual, so did the physical warrants. LME C-3m valued edged to $7B. SHFE Spot/LME 3M arb flattened out at 6.30, suggesting importing may lose around RMB3302/mt in spot market and RMB3105/mt in forward market.

Today, aluminum price is unchanged from last week, and the premium remains high. The sentiment of sitting on the sidelines from the market participants has been on the rise and the profit of traders is limited, with limited trading volumes. The whole activity did not improve. 

Edited by SHMET

Copper – Premium for electrolytic copper is higher, with shanghai ER copper B/L being more popular

Date Apr 16 2018 17:41:09Source:SHMET

Premiums for CIF in Shanghai stood at $65-$85, while that for shanghai bonded warehouse flatted at $70-$85. LME C-3m valued was $33.5C. SHFE Spot/LME 3M arb stayed steadily at around 7.41, with a spot import gain of RMB277/mt, whilst 3M SHFE/LME arb may have a loss of about RMB 37 /mt, with ratio of 7.43.

Offer for popular CIF ER copper in the market is at around $83/ton, with actual trading price being negotiable when the buying amount is large. The premium for cargoes of delivery a week before arriving at the port is higher, arriving at the port on around 20th, May and the Qp is in June. Generally, the delivery is mainly the delivery three days before arriving at the port. The ER warrants in shanghai bonded warehouse are reluctant to sell out, with few offer and premium being continuously high. 

Edited by SHMET

Nickel – Overall transactions as a whole are rare, having no significant change from yesterday

Date Apr 13 2018 17:33:41Source:SHMET

With regards to NI FP, offers in Shanghai bonded zone keep standing at the range of $250-$280, so is premiums for CIF. The SHFE Spot/LME 3M was at 7.42 and that for 3M SHFE/LME 3M at 7.46. Russian Ni registered a loss of RMB2456 in spot (2%of import tax) and a loss of RMB2225 3M forward.

Currently, the downstream purchase demand is light, while warrants of shanghai bonded warehouse and from overseas market held by sellers are mainly used in repo business or to finance the warrants pledge. The willingness to deliver cargoes is weaker, while traders don’t have much B/L of CIF shanghai. If the customer has a demand of delivering from overseas warehouse to shanghai, then the price will be higher and the willingness to purchase in the downstream will be worse. Therefore, the market transactions as a whole are rare. 

Edited by SHMET

Zinc – Downstream purchase demand is weaker, with transactions being not active

Date Apr 13 2018 17:33:17Source:SHMET

Zinc Premiums in Shanghai bonded warehouse quoted at $125-$135/mt and CIF shanghai stood at $135-$145/mt. Today LME C-3m valued at $7.5C, while the SHFE Spot/LME 3M arb also retreated to around 7.66, the spot import loss to RMB300/mt and expanding loss slightly in forward market, around RMB745/mt lost. Custom duty exempt brands, Australian and Korean, still generate quite a loss of RMB5/mt in spot import market, but it may lose RMB490/mt in forward import.

Zinc ingot import losses were slightly reduced, and downstream buyers were reluctant to import by customs clearance. At present, traders in the market are less willing to deliver cargoes at low prices, with the quotation of zinc ingot B/L and warrants insisting on around $40/ton. However, downstream purchase demand is also light, with the transactions being not active.

Edited by SHMET
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