REMINDER
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MATERIAL
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LOCATION
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PREMIUMS IN USD/TONNE
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NOTES
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Copper A
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Singapore
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15-25
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5% of stocks; LME stocks down 2,425t. Copper price recovers from 2-week low, last around $4,650. Cash/threes contango narrows to $0.50.
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South Korea
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15-25
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3% of stocks; LME stocks up 500t
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CIF Korea
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75-85
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Slow spot market, focus on LTC; last PPS tender at $92 for 2,000t of Zambian origin
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Malaysia
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0-20
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19% of stocks; stocks down 1,050t, mainly Zambian/Indian origin. CIF South East Asia 70-80; 4-week queue at Pacorini Johor
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Rotterdam
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20-30
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20% of stocks; LME stocks down 1,725t; no more queues.
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CIF Rotterdam
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45-55
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Thin buying interest after Christmas and NY; warehouse incentives as high as 50. Off-grade offered around 20
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Vlissingen
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20-30
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1% of stocks, stocks down 2,025t
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Antwerp
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20-30
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8% of stocks, stocks flat
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Germany
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95-105 delivered
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No LME stocks, destocking; some LT contracts signed at slightly higher than annual benchmark
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Bilbao
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15-25
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LME stocks flat (only 25t)
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Italy
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20-30
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Stocks replenished by 100t
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CIF Italy
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50-60
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Slow start of the new year, ample off-warrant stocks
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US warrants
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0-10
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42% of stocks, stocks up 2,050t (Including 1,550 in Chicago); no queue in Pacorini Nola
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US Midwest
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5.00-5.50 cents/lb dlvd
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Premiums stay at May 2012 lows, weak demand and distressed offers from producers, high Comex stocks. Supply cuts yet to have impact
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Shanghai
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75-85 CIF (SX-EW 75-80, ER 80-85)
75-90 bonded (SX-EW 75-80, ER 80-90)
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Slow start of trading after NY; physical arb flat between LME and SHFE, caution over currency arb as China's central bank suspended three foreign banks for FX business until end-Mar
SRB will buy 150kt of copper via tenders with more details to be revealed in later this week
Chinese CSPT smelters consider 200kt sales volume cuts in Q1
Bonded stocks at 380,000-400,000t end-Nov
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CIF Japan
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70-80 (ER only)
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No LME stocks, no imports. Quiet market
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CIF Taiwan
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75-85
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1% of stocks, stocks flat, thin buying interests with further downside pressure
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2016 contracts
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Aurubis and Codelco cut premium in Europe to 92. Codelco cut premiums to 98 in China, 92 in Taiwan/Korea/Japan. PPC at 105 in China/Taiwan, talk of deals at 90.Traders offer discounts of 10-20 to benchmarks in China/Taiwan. US Midwest booked at 5-5.5 c/lb; Codelco set to agree to 2.5-3 c/lb CIF Panama City.
2015 recap - Europe: Aurubis at 110, Codelco at 112. Asia: PPC 115; Codelco 133 in China, 115 in Korea/Taiwan/Japan, 127-135 in Vietnam/Malaysia. US Codelco 4 cents/lb CIF Panama. Less LTC booked despite discounts to benchmark offered
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Aluminium
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Singapore
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90-100 ingots; 80-90 sows
Some warrants at 50-70
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12% of stocks; stocks flat; prices at multi-week lows around 1,470/t. Jan-Feb; cash/Jan; cash/threes in contango of up to $6.5; but Feb/March still in backwardation
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CIF Singapore
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100-115 ingots
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Small uptrend in line with higher MJP benchmark; but some business done at discounts. Talk of cheaper offers for Indian material
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South Korea
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90-100 ingots on-warrant
100-110 off-warrant
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4% of stocks, LME stocks flat. Off-warrant stocks around 800,000t, more stocks coming in Q1
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CIF Korea
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100-115 ingots
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Weak consumption, high stocks but increase in line with MJP; last PPS tender at 111.4/114.4 for 4 kt
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Malaysia
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95-105 ingots
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7% of stocks, LME stocks flat, 3-week queue at Pacorini in Johor
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CIF Malaysia
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100-115 ingots
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Quiet market but follows regional adjustment
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Rotterdam
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110-120 DUP, 160-170 DP ingots
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26% of stocks; LME stocks flat; slow demand after year-end holiday, nearby contango eases selling pressure
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Vlissingen
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Clearing with queue
105-120 DUP, 155-170 DP noQ
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29% of stocks; stocks flat. Queue falls to 12 months in Pacorini on new LORI rules; questions over QBRC impact. No delivery in stages allowed
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Antwerp
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110-120 DUP, 160-170 DP ingots
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1% of stocks; LME stocks flat
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Italy
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200-210 DP FCA
200-205 in the North and 205-210 in the South
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5% of stocks; stocks flat; more demand after stocks depleted, South tighter than North
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Spain
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195-205 DP FCA
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1% of stocks; LME stocks flat, very wide premium range reported; DUP heard as low as 140-150
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Turkey
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130-140 DUP FCA
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FCA premium at $10-30 above inw Rotterdam depending on container/bulk. Slow buying amid political turmoil
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Baltimore
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140-155 INW noQ
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4% of stocks; LME stocks flat; in strong hands
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Detroit
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Clearing with queue
140-155 INW noQ
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8% of stocks; LME stocks flat; queue falls to 6 months in Metro on LORI rules, unpopular material in queue
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Chicago
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140-155
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No LME stocks
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New Orleans
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140-155, locked up
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LME stocks flat (only 500t), no more queue in Pacorini
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Mobile
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140-155 INW noQ
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No LME stocks
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US Midwest
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8.5-9.0 cents/lb dlvd DUP
South sold at premium to Midwest, no more discount for North
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12% of stocks; LME stocks flat; mild winter weather increases scrap supply, ample spot supply, consumers well covered for Q1 and holding off for Platts conference on Jan 20
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CIF Brazil
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160-170 Santos DUP
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Some enquiries and tenders, high stocks in Santos port
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Shanghai
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90-100 CIF
80-90 bonded
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Bonded stocks at 20,000-25,000t end-Nov; arb closed, no buying interest, even for tolling; exports of ali products to continue
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CIF Taiwan
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100-110 CIF
100-110 bonded
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Quiet market, no LME stocks, plenty of off-warrant stocks available
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CIF Japan
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MJP Q1 settles at $110
Spot market at 105-115
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Up 22 pct from 6-year low of $90 in Q4.
Major Japanese port stocks drop to 1-yr low at 401,000 tonnes in November. No LME stocks
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2016 contracts
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Premium curve flattens for 2016; some see upside risks in H2 but CME futures curve in backwardation; some fixed contracts heard above 10 c/lb in US. Europe: buyers prefer floating premiums.
2015 recap - Europe: Rotterdam DP at 480-490 inw, Italy 520-540 DP FCA. US Midwest mainly on floating basis, some fix contract talks at 10-12 cents/lb. Asia - partly booked on floating MJP basis, partly left for spot
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Zinc SHG
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Singapore
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50-60 high lead
70-80 low lead
110-120 FCA high lead
120-130 FCA low lead
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No LME stocks. Price back below $1,600. Cash/threes contango widens to $18.
Gap between high-lead and low-lead brands narrows, high lead still widely available
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Malaysia
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50-60 high lead; 75-85 low lead
100-110 FCA high lead; 125-135 FCA low lead
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6% of stocks; LME stocks flat. High off-warrant stocks of around 50,000t
Other Southeast Asian locations and South Korea: CIF 105-115, last PPS tender at 130 for Indian brands for 2,000 tonnes. 3-week queue at Pacorini Johor
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Rotterdam
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FCA 85-100 DUP, 130-145 DP
70-80 inw
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2% of stocks, LME stocks flat. Market is still in holiday mode and remains quiet. No more queues in Rotterdam, Vlissingen
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Antwerp
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FCA 85-100 DUP, 130-145 DP
60-70 high lead inw
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12% of stocks, LME stocks flat
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Italy
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160-170 DP FCA; 195-205 dlvd
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No LME stocks, few enquiries, ample supply.
Talk of aggressive offers from traders
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US warrants
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0-5
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79% of stocks, LME stocks down 3,125t, no queue at Pacorini; Istim has large stocks
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US Midwest
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6.75-7.25 cents/lb dlvd
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Slight uptick in premiums as end-year destocking ends and spreads improve
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Shanghai
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110-130 CIF
110-130 bonded
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Unprofitable to import due to weakening yuan although arbitrage ratio between SHFE and the LME hits 8.39
Zero tariff for Chinese to import South Korean zinc products thanks to China-South Korea free trade agreement
Bonded stocks down to 75,000-95,000t at end-Nov.
Taiwan at 135-145 CIF, no LME stocks; HG zinc at 50-60.
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Jebel Ali – Dubai
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160-170 FCA high lead
175-185 FCA low lead
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No LME stocks. High off-warrant stocks of 20,000-30,000t start to decline but ample supply of HG zinc including Iranian, premiums at 50-70
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2016 contracts
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US deals reported at 7-7.75 c/lb dlvd; Europe deals done at 125-145 DP FCA Rotterdam. Lower trend seen in Asia - China deals done at 100-120 CIF; Taiwan deals done at 135-145 CIF; SE Asia offers at 145-160 CIF, bids at 125-150.
2015 recap: very few LTC deals in China due to bids-offers $30-60 apart (offers 130-160); Southeast Asia: 170-185 CIF; Taiwan: 160-180 CIF with producers, traders lower at 155-160; US at 9-9.5 cents/lb. Europe: Italy 230-240 dlvd, Rotterdam at 140-160 DP FCA. Middle East at 190-210 FCA
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Nickel
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Singapore
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30-50 FP; 10-25 briq; 60-70 cut (no offers)
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11% of stocks; LME stocks up 1,158t.
Price stable around 8,600/t. Cash/threes contango narrows marginally to $40. Jinchuan to cut Dec output by 2,000t; Demand for SHFE deliverable full-plate cathodes meets thin availability in SE Asia
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South Korea
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25-40 FP, 5-15 briq
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3% of stocks; stocks down 204t; last PPS tender for 200t at 400 CIF premium
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Malaysia
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0-20 FP/0-10 briq with queue (up to 45 no queue)
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36% of stocks; stocks up 2,568t, 4-week queue in Pacorini Johor
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Rotterdam
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30-40 FP; 10-25 briq; 190-210 cut
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27% of stocks; stocks down 174t. Very quiet market, hand-to-mouth buying, some destocking seen with slow consumer orders
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Vlissingen
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30-40
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LME stocks flat, no queue
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Antwerp
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30-40
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LME stocks flat, no queue
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Sweden
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20-30
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LME stocks down 396t
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UK
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20-30
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2% of stocks; LME stocks down 300t
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US Midwest
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15-20 cents/lb melting
60-65 cents/lb plating
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2% of stocks; LME stocks flat. Slight cut cathode tightness and fewer briquette discounts
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Shanghai
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140-160 FP bonded
140-160 FP CIF, 0-30 briq
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Bonded stocks increase to 65,000-75,000t end-Nov. Widely fluctuating physical and currency arb sees premiums reaching higher for SHFE deliverable material, but little traded
Taiwan LME stocks remain high over 40kt after arrivals from Mal, Sing
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Dubai
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15-25
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4% of stocks (mostly briq), LME stocks down 102t
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Japan
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12-13 cents/lb GSP duty free
130-140 FP CIF
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No LME stocks; very quiet market as Japan has enough local/duty-free supply
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2016 contracts
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Overall low interest for LTC; ongoing discussion; some deals heard at 40-55 FP inw Rotterdam; offers seen at 120-130 FP CIF Shanghai; some buyers would rather play spot market in 2016 than agree to full-year fixed contracts
2015 recap - China: some contracts booked at 120-130 CIF FP, fewer LTC deals. Europe: 50-90 FP inw. US melting FP at 15-25 c/lb
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Lead
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Singapore
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15-25 for 99.97%
60-80 for 99.99%
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No LME stocks; Prices down around $1,720/t; Cash/3s back in $6.5 contango. A huge shortage of battery scrap seen in Europe. LTC negotiations continue
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Malaysia
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15-25 for 99.97%
60-70 for 99.99%
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49% of stocks; LME stocks flat.
South-East Asia at 100-110 CIF for 99.97% primary, 80-90 for secondary and 140-150 CIF for 99.99%, queue of 31 days at Pacorini warehouses in Johor
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South Korea
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0-15 for 99.97%
100-110 CIF for 99.97% primary
90-100 for secondary
140-150 CIF for 99.99%
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26% of LME stocks flat.
Last Korean PPS tender at 139 CIF duty free for 99.99%, last PPS tender at 110 for 99.99% Indian origin for 500 tonnes.
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Taiwan
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10-20 for 99.97%
CIF 100-110 for 99.97%, 135-150 for 99.99%; secondary 99.97% at 70-80
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LME stocks flat at 25t; low buying interest, except for cheap Iranian brands, weak battery demand. Ample secondary supply, Iran offers at 60-70
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India
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90-110 CIF for 99.97% (primary
and secondary)
145-155 CIF for 99.99%
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Some buying interest but battery demand low. Iran offers secondary spot at 60-80
100-110 CIF for non-LME 99.97%, 230-240 CIF for ASEAN FTA 99.99%
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Rotterdam
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10-20 for 99.97%; 60-70 DP FCA
165-175 DP FCA for 99.99%
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5% of stocks, LME stocks flat, no buying interest
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Vlissingen
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0-15
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20% of stocks; LME stocks flat; no queue
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Antwerp
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10-20 DP 99.97%
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LME stocks flat at 150t, no queue
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Spain
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15-20
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1% of stocks; LME stocks flat.
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Italy
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15-20 for 99.97%; 80-90 FCA DP
140-150 dlvd North Italy
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LME stocks flat at 25t, slower demand despite tight battery scrap supply
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US warrants
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20-30
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No LME stocks, no queue in Metro Detroit, Pacorini New Orleans
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US Midwest
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9-10 cents/lb dlvd for 99.97%; 12-13 cents for 99.99%
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Ample supply, high imports from Asia keep premiums low despite OK battery demand
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2016 contracts
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US: early 2016 99.99% deals at 12.5-14 cents. Offers on cif Asia at $90-100 for 99.97%; 99.99% deals concluded at 130-150 CIF on KZ expansion. Deals of $130 dlvd for 99.97% in Eastern Europe, $150-160 dlvd for 99.97% in Italy.
2015 recap: Asia: 99.97% at 90-110 CIF Asia, 99.99% at 140-170; India: 99.97% at 75-95 CIF; Europe: 99.97% at 140-155 dlvd; US 13-14 cents dlvd Midwest for 99.99%, 99.97% around 10 cents
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Tin
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Singapore
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0-20 for 99.85%; 55-75 for 99.9%, 80-200 low lead (<100ppm)
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38% of stocks; LME stocks down 120t. Price stable at 14,650/t, cash/3s backwardation widens to $40.
Deliveries of Chinese low-lead brands throughout Dec leads to split of 100-50ppm at 60-100, 120-220 range heard for <50ppm tin.
Some year-end destocking seen
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Malaysia
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0-20 for 99.85%
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58% of stocks; stocks up 40t, no queue. Some 99.9% offered at 125-150
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South Korea
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75-125 for 99.85% DUP, 200-250 for 99.9% (no trade)
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1% of stocks, LME stocks flat, quiet market, high off-warrant stocks. Last PPS for 200t of 99.85% at 364-384 (duty free) in Nov
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Rotterdam
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300-350 for 99.85%; 325-375 for 99.9%; 425-475 low lead (<100ppm)
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3% of stocks; LME stocks flat. Year-end destocking looms amid ample stocks, shipment arrivals from Asia
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CIF Rotterdam
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290-340 for 99.85%, 320-370 for 99.9%; 440-490 low lead (<100ppm)
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End-users well covered by existing stocks; annual contract talks in progress.
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CIF Shanghai
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125-175 for 99.85%; 200-250 for 99.9%; 300-350 low lead (no trade)
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Slow demand; arb closed
CIF Taiwan 200-250 for 99.9%, 375-425 low lead, no LME stocks
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US Baltimore
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390-420 for 99.85%, 425-475 for 99.9%; 450-600 low lead (<100ppm) in-warehouse
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No LME stocks, still reasonable off-warrant inventories, buying interest stable; wide premium range for low lead: <50 ppm valued around 600s
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US Midwest
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450-550 for 99.85%; 525-575 for 99.9%; 625-675 low lead
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Year-end destocking, lower producer offers
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2016 contracts
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2016 99.9-percent premiums decline in Europe: some annual deals heard at $340-420 CIF Rotterdam; for low-lead, some annual deals heard at $490-520 CIF Rotterdam
2015 recap - Rotterdam booked above 550 inw for low lead (550-600 in 2014) and 360-400 for standard 99.9% (425-450 in 2014). No numbers for MSC (380-400 in 2014), Asia: some deals at 260-300 for 99.9%, some suppliers shun LTCs
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Premiums are paid on top of London Metal Exchange cash prices to acquire ownership or secure delivery of physical metal at an agreed location and date. Rates vary according to brand, specification, purity, tonnage, payment terms and warehouse operator.
FastMarkets assess premiums for LME warrants based on in-warehouse delivery excluding FOT removal charges and for physical material based on CIF or FCA delivery. They are nominal indications only, based on contributions from market sources, and should not be construed as actual bids and offers.
Our stocks data represent weekly variations for warranted volumes. Clearing material can be obtained at level by brokers only through the LME clearing system.
(Table compiled by FastMarkets’ Physical reporting team, physicals@fastmarkets.com )
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