Author：Site  Source：Original Site  Click to rate：946  Post time：2014-11-11

Tags: SHFE copper prices,  SHFE aluminum prices,  aluminium circle,  SHFE zinc prices,  Shanghai tin prices,  Shanghai nickel prices

SHANGHAI, Nov. 11 (SMM) –    Copper  Copper for January delivery on the Shanghai Futures Exchange, the most active contract, started last Friday’s night session at RMB 47,090/mt, and then advanced to RMB 47,480/mt. The price of the SHFE 1501 copper contract finished up RMB 320/mt, or 0.68%, at RMB 47,350/mt. During the night session, positions for the most active contract gained 7,146 lots to 326,150 lots, and trading volumes totaled 146,822 lots.   On Monday, SHFE copper hovered around RMB 47,500/mt after meeting resistance at RMB 47,600/mt, and ended up RMB 480/mt, or 1.02%, at RMB 47,510/mt Trading volumes for the SHFE 1501 copper contract shrank by 3,690 lots, and positions shed by 2,092 lots.   Physical copper in Shanghai was quoted Monday between a RMB 50/mt discount and a RMB 50/mt premium. Traded prices were RMB 48,200-48,320/mt for standard-quality copper and RMB 48,250-48,370/mt for high-quality copper.   As the price gap between SHFE 1501 and 1502 copper contracts remained at RMB 400-500/mt, cargo holders rushed to sell at high prices ahead of the delivery date. As a result, copper supply was abundant on Monday, with a variety of brands found in the market. Middlemen barely entered the market since they considered the rebound in copper prices short-lived, while downstream producers stayed on the sidelines.   Physical copper was quoted largely between a RMB 60/mt discount and a RMB 10/mt premium during the afternoon trading session and traded at RMB 48,180-48,280/mt. Trading activity was quiet on Monday.   70% of industry insiders polled by SMM expect copper prices to remain range-bound this week. China’s inflation data matched estimates, while reports from the euro zone were weak, but these poor data fueled expectation of more stimulus measures. Upbeat US economic data will proffer some support to copper prices, but may also lead to a stronger dollar. In this context, copper prices will be deprived of impetus to rise, and see limited downward room at the same time. LME copper is expected to trade at USD 6,650-6,730/mt, and SHFE copper prices will move at RMB 46,800-47,800/mt.   15% of players believe LME copper will test a low of USD 6,600/mt and SHFE copper will follow down to RMB 46,500/mt, noting that the strong US dollar and continued gloominess in the euro zone will exert a drag on copper prices.   On the SHFE, selling pressures on back-month contracts and profit-taking will weigh down prices. In physical markets, the price gap between SHFE 1411 and 1412 copper contracts remained wide at RMB 400/mt. Plus the tight year-end cash flow, cargo holders will rush to sell before the December-delivery copper rolls over to the front-month one. Meanwhile, downstream buyers will still purchase on production needs. Thus, spot discounts will be seen in China’s copper market.   The remaining 15% of market players remain optimistic that LME copper will stand above USD 6,650/mt and SHFE copper will break through resistance at RMB 48,000/mt. The US nonfarm payroll data remained strong in October, while the country’s jobless rate hit its lowest since July 2008 of 5.8%. US shares extended gains, helping bolster copper prices. Meanwhile, the US dollar index pulled back, allowing precious metals to bounce back.   In China, the opening of APEC meeting, the proposed “Silk Road fund” and impending Shanghai-Hong Kong stock connect will bode well for market. in addition, as 11 UHV power projects will be established and railway construction progress will also accelerate, large enterprises expected a rise in copper demand. China’s unwrought copper and copper semis imports increased to 400,000 mt in October, while copper output also grew. These, in combination with falling copper stocks, indicated improving consumption in China.   Technically, LME copper will find solid support. Short positions in SHFE copper are declining, which will help SHFE copper to challenge higher levels.    Aluminum       Last Friday night, SHFE 1501 aluminum contract climbed to RMB 13,910/mt after starting at RMB 13,850/mt, and finished the night session at RMB 13,885/mt.

from metal.com