SMM Metals Reports

47% of Chinese Copper Plate/Sheet, Strip and Foil Makers See Copper Prices to Consolidate

SHANGHAI, Dec. 22 (SMM) – 47% of major copper plate/sheet, strip and foil producers in China expect copper prices to consolidate in the short term, the latest survey of 21 producers indicates.
On the positive side, US economic recovery has been impressive recently. Expectations are running high for looser monetary policy in China after the recent Central Economic Work Conference.
On the downside, the US dollar index returned above 89 following the US Fed’s latest policy meeting. Chinese economy has slowed down. Besides, tightening year-end liquidity will undermine activity in SHFE copper market.
19% of these producers are bearish, arguing that slumping crude oil and weak market fundamentals will continue to weigh down copper prices.
Crude oil has crashed below $60 per barrel with little prospect of a turnaround.
Supply glut in China will worsen as refined copper production hit new high and since improving SHFE/LME copper price ratio will cause more imported copper to flow into the market. Meanwhile, downstream consumption will be sluggish due to cash shortage at the year’s end.
Another 10% anticipate a rally. SHFE copper is more resistant to declines than LME copper, and this situation will become more pronounced with the Christmas holiday drawing near.
The remaining 24% said they have no idea how copper prices will move. 

China Leaves Rare Earth Export Duty in Place 2015

SHANGHAI, Dec. 17 (SMM) – China is leaving the duty on its rare earth exports in place in 2015, according to the Tariff Execution Plan 2015 released by China’s Ministry of Finance.
Market players had expected China to remove the production quotas and export duty for rare earth after it lost the appeal at the World Trade Organization in the case brought by the US, the EU and Japan to challenge China's restrictions on exports of rare earths. However, China left the tariffs on rare earth exports unchanged from 2014, the Plan shows.
It remains unknown whether the government will make adjustment to rare ea

SMM Aluminum Market Daily Review (2014-12-19)

SHANGHAI, Dec. 22 (SMM) –Last Thursday night, SHFE 1503 aluminum contract climbed to RMB 13,170/mt after starting at RMB 13,050/mt, and finished the night session at RMB 13,095/mt. Trading volumes totaled 13,718 lots, with positions up 512 lots to 125,035 lots.      
 
Last Friday, the most active contract moved sidelines in the morning before following other base metals up to RMB 13,200/mt. Finally, the contract ended at RMB 13,165/mt. Trading volumes totaled 37,442 lots, with positions up 4,036 lots to 128,560 lots. Prices may rebound further as sentiment is improving. 
 
Spot aluminum largely traded between RMB 13,040-13,060/mt in Shanghai last Friday, premiums of RMB 0-10/mt over SHFE 1501 aluminum contract, versus RMB 13,030-13,050/mt in Wuxi, and RMB 13,070-13,090/mt in Hangzhou. SHFE 1501 aluminum contract rebounded to RMB 13,040/mt, but spot aluminum prices still dropped. Demand picked up only slightly. In the afternoon, most suppliers held back goods out of optimism after SHFE front-month contract rose sharply. 

Spot Copper in Shanghai Quoted at RMB 100-160/mt Premiums (Dec. 19, 2014)

SHANGHAI, Dec. 19 (SMM) – Spot copper in Shanghai was quoted Friday at a RMB 100-160/mt premium. Standard- and high-quality copper sold for RMB 46,150-46,250/mt and RMB 46,180-46,300/mt, respectively. Cargo holders largely were destocking, while downstream producers bought only as needed on Friday. 

Aluminum Prices in East China Continue Falling (Dec. 19, 2014)

SHANGHAI, Dec. 19 (SMM) – Spot aluminum largely traded between RMB 13,040-13,060/mt in Shanghai on Friday, premiums of RMB 0-10/mt over SHFE 1501 aluminum contract, versus RMB 13,030-13,050/mt in Wuxi, and RMB 13,070-13,090/mt in Hangzhou. SHFE 1501 aluminum contract rebounded to RMB 13,040/mt, but spot aluminum prices still dropped. Demand picked up only slightly.