SMM Evening Comments (Aug 18): Shanghai nonferrous metals rose across the board for two days

SHANGHAI, Aug 18 (SMM) –SHFE nonferrous metals rose across the board for the second consecutive day on Tuesday August 18.

Zinc led the gains on Monday and ended up 1.92%. Nickel advanced 1.12%, lead grew 0.03%, aluminium increased 0.7%, copper went up 0.87% and tin expanded 0.2%.

A total of 96 vessels carrying 14.81 million mt of iron ore arrived at major Chinese ports during August 9-15, SMM estimates. This was up 2.16 million mt from the prior week and 410,000 mt from the same period last year.

The ferrous complex also traded higher. Iron ore added 3.48%, hot-rolled coil increased 1.04% and rebar rose 0.71%.

Copper: The most-traded SHFE 2009 copper contract climbed to an intraday high of 51,390 yuan/mt this morning, but trended lower in the afternoon, finishing the day 0.87% higher at 50,830 yuan/mt. Continued tensions between the US and China dampened market sentiment, posting a strong pressure on copper prices. Whether the contract could maintain its upward trend and break above 51,000 yuan/mt will come under scrutiny tonight.

Aluminium:  The most-liquid SHFE 2009 aluminium contract finished the day 0.7% higher at 14,435 yuan/mt, after hitting an intraday high of 14,485 yuan/mt. Open interest increased 729 lots to 114,000 lots. The macro impact will be monitored in the short term.

Zinc: The most-active SHFE 2009 contract finished the day 1.92% higher at 19,900 yuan/mt. Open interest fell 4,012 lots to 85,160 lots. Whether the contract could remain above 20,000 yuan/mt will come under scrutiny tonight.

Nickel: The most-traded SHFE 2010 nickel contract ended 1.12% higher at 116,150 yuan/mt today. The contract is expected to move between 112,000 - 117,000 yuan/mt this week.

Lead: The most-active SHFE 2009 lead contract fell to an intraday low of 16,055 yuan/mt in morning trading and finished the day 0.03% lower at 16,165 yuan/mt. Whether the contract could remain above the 10-day moving average will be monitored tonight.

Tin: The most-traded SHFE 2010 tin contract plunged more than 800 yuan/mt to an intraday low of 141,720 yuan/mt after opening, before reversing some losses to close 0.2% higher at 142,860 yuan/mt. It is expected to move above five-day moving average of 142,500 yuan/mt. Pressure above is expected to be 10-day moving average of 143,800 yuan/mt.