SMM Morning Comments (Feb 13)

SHANGHAI, Feb 13 (SMM) –

Copper: Copper prices rebounded following the global stock market rally and further upward room remains. We see SHFE copper trading at 51,300-51,900 yuan/mt with LME copper at $6,850-6,900/mt today. In the physical market, thin trading liquidity may see spot discounts widen to 300-250 yuan/mt.

Aluminium: The increase in LME aluminium inventory reflected growing Chinese export orders. We expect LME aluminium to trade at $2,120-2,155/mt today and SHFE aluminium at 14,300-14,500 yuan/mt. Spot discounts are seen stable at 240-200 yuan/mt.

Nickel: LME nickel inventory fell for 15 consecutive days to a two-and-an-half-year low at 341,160 mt as of Monday February 12, supporting prices. We expect LME nickel to be rangebound at the $13,000/mt level and SHFE nickel at 99,500-100,500 yuan/mt today. Spot prices are set to trade at 98,700-99,700 yuan/mt.

Zinc: Lower LME inventory continued to lend support to the LME zinc price but China’s domestic market saw little fundamental backing. We expect the SHFE 1804 zinc contract to trade at 25,700-26,100 yuan/mt today and LME zinc at $3,365-3,410/mt. In the physical market, the 0# common brand is set to trade at a discount of 90-70 yuan/mt and Shuangyan brand at a discount of 20 yuan/mt to flat.

Tin: SHFE tin is set to trade at 146,000-147,500 yuan/mt today while LME tin sees support at the $21,000/mt level.

Lead: We expect SHFE lead to be rangebound today with support at the 18,900 yuan/mt level.

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