SMM Evening Comments (Feb 28): Shanghai Nonferrous Metals Closed Mostly with Gains on Weak US Dollar

SHANGHAI, Feb 28 (SMM) – Shanghai nonferrous metals closed mostly with gains in day trading. On the macro front, the initial value of U.S. January durable goods orders’ MoM growth recorded the largest decline since April 2020, and the U.S. dollar index dropped. But the short-term expectations over US rate hikes have been reinforced.

SHFE copper rose 0.49%, aluminium added 0.24%, lead was flat, zinc grew 0.22%, tin shed 0.26%, and nickel gained 0.7%.

Copper: The most-traded SHFE 2304 copper closed up 0.49% or 340 yuan/mt at 69,050 yuan/mt, with open interest down 9,004 lots to 150,661 lots.

The spot market picked up after SHFE copper dropped yesterday. The spot discounts were less than 100 yuan/mt in the last trading day in February, and the market animation weakened.

Aluminium: The most-traded SHFE 2304 aluminium closed up 0.24% or 45 yuan/mt at 18,460 yuan/mt, with open interest down 7,887 lots to 215,358 lots.

Aluminium ingot social inventory maintained the trend of accumulation, and spot transactions have not improved significantly.

Lead: The most-traded SHFE 2304 lead closed flat at 15,350 yuan/mt, with open interest up 118 lots to 53,486 lots.

SHFE lead remained high today, and the cargo holders mostly quoted with small discounts and sold actively. The downstream players, however, mainly purchased on demand, and only some traders actively took sources with large discounts.

Zinc: The most-traded SHFE 2304 zinc closed up 0.22% or 50 yuan/mt at 23,155 yuan/mt, with open interest down 6,802 lots to 89,604 lots.

Downstream players started to restock yesterday when SHFE zinc price fell, but refrained from purchasing today after zinc price rebounded. The market transactions were relatively poor, and the spot prices dropped compared with a day ago.

Tin: The most-traded SHFE 2304 tin closed down 0.26% or 550 yuan/mt at 209,230 yuan/mt, with open interest up 3,891 lots to 55,765 lots.

In the spot market, some smelters held the prices firm, while some traders were active in making quotes. The spot prices of most refined tine brands remained stable. The inquiries from clients dropped today, and most of whom purchased on rigid demand.

Nickel: The most-traded SHFE 2304 nickel closed up 0.7% or 1,370 yuan/mt at 197,930 yuan/mt, with open interest down 5,442 lots to 71,679 lots.

In the spot market, Jinchuan nickel was in premiums of 5,300-5,500 yuan/mt, with an average of 5,400 yuan/mt, down 350 yuan/mt from the previous trading day. NORNICKEL nickel was in premiums of 2,700-3,300 yuan/mt, with an average of 3,000 yuan/mt, down 600 yuan/mt. SHFE nickel bottomed out today, and the spot premiums kept falling as upstream players were eager to sell around month-end. Nonetheless, the transactions were basically among the traders as the absolute spot prices rose. For nickel briquette, the prices stood between 202,050-203,050 yuan/mt, up 1,300 yuan/mt on a daily basis.

[Disclaimer: The above representation and data is based on market information SMM believes to be reliable at the time of acquiring as well as the comprehensive assessment by SMM research team, and any and all information provided in this article is for reference only. This article does not constitute a direct recommendation for investment or any decisions in any form and clients shall act on their own discreet and any decisions made by clients are not within the responsibility of SMM.]