SHANGHAI, Oct 30 (SMM) — Shanghai base metals rose broadly on Friday morning, while their counterparts on the LME set for a mixed start, as investors weigh better-than-expected US third-quarter GDP and jobless data and surging coronavirus infections globally.
Shanghai nonferrous metals closed mixed in overnight trading. Copper slid 0.21%, nickel fell 1.66% and tin ended flat, while aluminium added 0.17%, zinc rose 0.56% and lead advanced 0.42%.
The LME complex ended mostly lower in Thursday session. Copper edged down 0.07%, aluminium weakened 0.41%, nickel shed 1.11% and tin lost 0.75%, while zinc added 0.2% and lead rose 1.33%.
Copper: Three-month LME copper fell to an intraday low at $6,698/mt when the US dollar index rose above 94, before reversing some losses to end just 0.07% lower at $6,741.5/mt on Thursday. It is likely to trade between $6,700-6,780/mt today.
The most-active SHFE 2012 copper contract weakened 0.21% to close at 51,260 yuan/mt in overnight trading, and it is expected to move between 51,100-51,600 yuan/mt today, while spot premiums will be seen at 120-190 yuan/mt.
The US dollar held gains overnight as escalating COVID-19 cases in the US and Europe triggered renewed lockdown measures, boosting investor appetite for the safe-haven currency. However, US third-quarter GDP expanded more than expected, coming in at 33.1%, and initial claims for jobless benefits also declined for a second consecutive week and hit its lowest since March.
Aluminium: Three-month LME aluminium dropped to a three-week low at $1,793/mt on Thursday, before regaining some ground to end 0.41% lower at $1,804/mt. It is expected to trade between $1,790-1,830/mt today.
The most-liquid SHFE 2012 aluminium contract settled 0.17% firmer at 14,385 yuan/mt in overnight trading, and is likely to move between 14,200-14,600 yuan/mt today.
Zinc: Three-month LME zinc added 0.2% to close at $2,546.5/mt on Thursday. Zinc stocks at LME-listed warehouses shrank 550 mt or 0.25% to 219,925 mt. It is likely to fluctuate between $2,510-2,560/mt today.
The most-liquid SHFE 2012 zinc contract rose 0.56% to end at 19,770 yuan/mt in overnight trading. Zinc smelters are likely to keep high output till the end of 2020, as SMM surveyed, and treatment charges are expected to fall further, providing traction to zinc prices. The December zinc contract is expected to move between 19,400-19,900 yuan/mt today, while spot premiums for domestic 0# Shuangyan will be seen higher at 130-150 yuan/mt.
Nickel: The most-active SHFE 2012 nickel contract opened at a low of 119,610 yuan/mt in overnight trading on stronger US dollar index and plunged oil prices, and ended 1.66% weaker at 119,400 yuan/mt. Whether the contract could steady above 120,000 yuan/mt today will be monitored.
Lead: Three-month LME lead rose for a third straight day and closed 1.33% higher at $1,834/mt on Thursday, after hitting its highest in more than two weeks at $1,845/mt earlier in the session.
The most-traded SHFE 2012 lead contract closed 0.42% higher at 14,505 yuan/mt in overnight trading, after hitting a more than two-week high at 14,645 yuan/mt earlier in the session. Lead prices are expected to rise further in the near term as secondary lead smelters expanded output cuts.
Tin: Three-month LME tin plunged to a one-month low at $17,670/mt as the US dollar strengthened, before wiped out some losses to settle 0.75% lower at $17,895/mt on Thursday. Support below will be seen from $17,300/mt today.
The most-liquid SHFE 2012 tin contract closed flat at 143,070 yuan/mt in overnight trading, and is expected to fluctuate above 140,000 yuan/mt today.
