SMM Metals Reports

Tight Month-End Liquidity Continues to Restrain Physical Copper Trading (Oct. 30, 2014)

SHANGHAI, Oct. 30 (SMM) – Physical copper in Shanghai was quoted Thursday between a RMB 60/mt discount and a RMB 50/mt premium to the SHFE 1411 copper contract. Traded prices were RMB 48,360-48,440/mt for standard-quality copper and RMB 48,400-48,500/mt for high-quality copper.

Main sea freight index at Baltic Exchange rises sharply to 1,395 points

LONDON (Scrap Register): The main sea freight index at Baltic Exchange for bigger vessels rose on Tuesday mainly on sustained higher activity across bigger vessel segments.

China Copper Wire Rod Makers Divided on Copper Price Outlook

SHANGHAI, Oct. 28 (SMM) – 24% of Chinese copper wire rod producers are bearish toward copper prices citing gloomy economic prospects and poor market fundamentals, the recent SMM survey of 21 producers reveals.
Global economic outlook, especially euro zone economy, is worrisome. Copper supply in China is plentiful due to the inflow of imported copper after SHFE/LME copper price ratio improved and high operating rates at Chinese copper smelters. Cash squeeze deterred fabricators from buying copper. The expected decline in 2015 term copper premiums for buyers in China also reflects weak copper demand.
Still, another 24% see copper prices to consolidate. On the downside, China’s refined copper supply remains in surplus. But on the bright side, the introduction of stimulus measures and the recent upbeat economic data have shored up market sentiment, which will put a floor under copper prices. The US dollar index will move sideways and US stock markets will stage no volatile movement, also keeping copper prices in check.
14% of those surveyed have painted a rosy picture. They argue that some fabricators will ramp up production to fulfill full year production goals, which will boost copper demand. Additionally, positive Chinese and US economic data and stimulus packages in major economics will also lift copper demand.
The remaining 38% said they are not sure about trends of copper prices.

SMM Copper Market Daily Review (2014-10-29)

SHANGHAI, Oct. 30 (SMM) – The most active SHFE 1501 copper contract hovered narrowly around RMB 47,650/mt during Tuesday’s night session after starting at RMB 47,710/mt. The price of the red metal confronted resistance at RMB 47,730/mt subsequently, and finished up RMB 260/mt at RMB 47,670/mt. During the night session, trading volumes for the most active contract totaled some 90,000 lots, and positions added by 10,328 lots.
On Wednesday, SHFE copper initially lacked impetus to rise, but surged to an intraday high of RMB 47,780/mt at the tail of the trading before closing up RMB 360/mt, or 0.76%, at RMB 47,770/mt. Trading volumes decreased by 11,220 lots, and positions shrank by 7,288 lots.
Physical copper in Shanghai was quoted Wednesday between a RMB 50/mt discount and a RMB 30/mt premium to the SHFE 1411 copper contract. Traded prices were RMB 48,150-48,200/mt for standard-quality copper and RMB 48,200-48,280/mt for high-quality copper.
As SHFE copper leveled off on Wednesday, the falling SHFE/LME copper price ratio prevented imported copper prices from falling further. Hydro-copper prices held firm due to tight supply. A small number of middlemen entered the market to buy low-priced high-quality copper, while downstream producers bought only to need.
As SHFE copper leveled out during the afternoon trading session, physical copper was quoted mostly between a RMB 50/mt discount and a RMB 30/mt premium, and traded higher at RMB 48,250-48,400/mt. Trading activity remained light on Wednesday. 

India closer to ending decades-old state monopoly on coal

In a move to reform its ailing energy sector, India has paved the way for private sector companies to mine coal commercially in the country.