SMM Metals Reports

SMM Scrap Copper Prices By Region (2014-4-17)

SHANGHAI, Apr. 17(SMM) – The details for scrap copper prices in major domestic markets are listed in the table below.  (Unit: RMB/mt)
Low-end Price
High-end Price
Average Price
#1 Scrap Copper, Shanghai
#1 Scrap Copper, Hebei
Low-oxygen Copper Rod, Tianjin
#1 Scrap Copper, Guangdong
#2 Scrap Copper, Guangdong
Imported Brass (In containers), Guangdong
Motor Copper, Guangdong
Brass 65, Guangdong
Brass 62, Guangdong
Shredded Brass, Guangdong

China’s Rare Earth Stockpiling Expected to Exceed Forecast

SHANGHAI, Apr. 15 (SMM) –
Volume of Rare Earth Stocked by SRB Expected to Exceed Forecast 
China’s State Reserve Bureau (SRB) has entered into agreement with Chalco, China Minmetals, Baotou Iron & Steel, Ganzhou Rare Earth Group, Xiamen Tungsten, and Guangdong Rising Nonferrous Metals, for purchasing rare earth for state reserves. Industry insiders believed the volume of rare earth purchased may exceed forecast, and prices will be at least 10% higher than market prices.
Several Mining Companies Raise Price Offers, Awaiting Stocking by SRB
Several mining companies, including China Minmetals, Guandong Rising Nonferrous, and Chalco offered high prices for rare earth after the WTO ruled that China's restrictions on rare earth exports are in violation of international trade law, driving up prices for some categories of rare earth products.

China Minmetals Rare Earth Continue to Increase Price for Rare Earth Oxides
China Minmetals Rare Earth raised prices for rare earth oxides April 10, with didymium oxide prices offered at 390,000 yuan per tonne, and dysprosium oxide prices at 2.05 million yuan per tonne, up 8% and 14% from April 2, respectively.
Prices of Rare Earth Fluorescent Powder LED Down 52-83%
Industry data showed that prices for cerium metal and terbium oxide – major rare earth products applied in LED – saw prices down 38.1% and 41.3%, respectively in March, with prices falling 52-83% compared with 2012’s highs.
China Rare Earth Exports Up 83.2% in Q1
China’s General Administration of Customs reported China exported 2,671 tonnes of rare earth in March, with value of 219.79 yuan million. Total exports during the first quarter grew by 83.2% YoY to 7,174 tonnes, with value at 584.16 million yuan, down 0.1%. 

Zinc Conc. Imports to China's Lianyungang Port Buck Trend to Surge 86.07% YoY in Q1 2014

SHANGHAI, Apr. 17 (SMM) – Zinc concentrate imports into China through the Port of Lianyungang surged 86.07% year-on-year in Q1 2014 despite sluggish performance of China’s non-ferrous metals market.
Inbounded shipments of zinc concentrates arrived at Lianyungang port were 156,300 tonnes during the first quarter of 2014, and were valued at $110 million, up 86.07% and 86.44% year-on-year, respectively. Such strong imports happened since the beginning of 2014, according to the port data
The imports were mainly sourced from 15 foreign countries during this period, up by 4 from the same period of last year. 
The Port of Lianyungang, one of two major ports of zinc concentrate imports in China, imported 507,400 tonnes of zinc concentrate in 2013, accounting for over 20% of total national imports.   

SMM Aluminum Market Daily Review (2014-4-16)

SHANGHAI, Apr. 17 (SMM) – On Tuesday night, SHFE 1406 aluminum contract climbed above the 5-day moving average after starting at RMB 13,150/mt, and finished the night session at RMB 13,180/mt. Trading volumes totaled 6,576 lots, and positions contracted 300 lots to 122,252 lots. China’s GDP grew 7.4% in Q1. The growth slowed down, but did beat forecasts. Value added at China’s large-scale industrial enterprises in March and fixed asset investment in China’s urban areas during Q1 both grew at a slower pace on an annual basis. However, market reaction was mild. The most active contract was range-bound on Wednesday, and closed the day at RMB 13,185/mt. Trading volumes totaled 8,586 lots, and positions fell 1,982 lots to 120,270 lots.
Spot aluminum largely traded at RMB 12,950-12,960/mt in Shanghai, RMB 12,940-12,950/mt in Wuxi, and RMB 12,940-12,960/mt in Hangzhou on Wednesday. Buyers pushed for lower prices and trading activity thinned compared to previous days. In the afternoon, a few cut offers to RMB 12,940/mt, but few deals were done. 

Average Operating Rate at Chinese Aluminum Processors Expected to Hold Stable in April

SHANGHAI, Apr. 16 (SMM) – Production at Chinese aluminum processors is expected to remain little changed in April, according to Shanghai Metals Market survey. 
Average operating rate at Chinese aluminum extrusion producers is expected at 64% in April, flat with March’s level, but down from the average of 70% from the same period last year, the latest SMM survey revealed. 
The year-on-year drop in the rate is believed to be due to a sluggish property sector. Banks have tightened lending for property-related enterprises, so aluminum extrusion producers and traders are now more cautious when deciding to supply goods to property developers. A depressed housing market is forcing construction enterprises, curtain wall companies and distributors to scale back inventories, cutting demand for aluminum extrusions. Tighter liquidity also means that aluminum extrusion producers are now demanding more cash terms from buyers as well.  
The average operating rate at aluminum plate/sheet, strip and foil producers is expected at 63%, largely unchanged from March, according to the SMM survey. Despite steady sales, many end users will scale back raw material purchases or ask aluminum processors to shorten delivery time as liquidity tightens and since end users have yet to run out of stocks purchased after the Chinese New Year holiday.