Shanghai copper prices came under downward pressure following the big fall on the LME last week. The cash month contract dropped to Rmb68,000/t ($8,500/t) by the market close on Friday, a decrease of Rmb300/t ($37.5/t) or 0.4% on the previous week.
Spot copper was trading at Rmb700/t ($88/t) above the cash month price on Friday, down from the previous weeks' Rmb900/t ($112.5/t) premium. It is reported that the first shipment of copper under Chile-China Free Trade Agreement has arrived shanghai over the week with total amount exceeding 10,000t.
Physical zinc was traded at RMB34,400/t($4,300/t) by market closing time on Friday, up by 4.5% week-on-week. Higher prices on the LME are leading to a growing concern of refined metal exports from China in the coming months.
Chinese aluminium (including alloy) exports in October were 72,420t, 34% lower from September. For the first ten months this year as a whole, Chinese aluminium (including alloy) exports were down by 7.3% YoY at 1.04mt.
Reported SHFE registered metal inventories went up marginally in October for both copper and aluminium but for the first ten months this year as a whole, SHFE copper stocks were down by 23,000t and aluminium down by 10,900t.
Preliminary statistics released by China Customs last week showed that in October, China exported 4.3mt finished steel, up 4.4% MoM and 217% YoY. China also exported 930kt steel semis, an increase of 484% YoY but a 13.1% drop MoM. During October, imports of finished steel dropped to 1.4mt, a fall of 28% YoY.
Fixed asset investment growth into the steel industry peaked in 2005 but for the first nine months, we are seeing the slowdown of fixed asset investment in steel, which decreased by ~1% YoY.
Chinese spot prices are rising strongly following lower imports in October and a sharp fall in port stocks.
Last week, rebar prices rose 1% week-on-week to $329/t ex-VAT. Hot rolled coil slid 0.9% week-on-week and 4.5% mom to $418/t while cold rolled coil kept unchanged at $517/t ex-VAT.
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