SHANGHAI, Feb 8 (SMM) – SHFE aluminium edged up slightly while all base metals fell more than 1%. SHFE copper dropped close to 2%. The ferrous complex saw mixed trading with hot-rolled coil and iron ore up slightly while rebar and coking coal slipped.
Copper: SHFE copper is expected to follow its LME counterpart lower tonight as investors cut their long bets.
Aluminium: We see pressure remain at the five- and 10-day moving averages but downward room is limited.
Nickel: Some 280 million yuan of funds exited SHFE nickel today as it traded under pressure and touched a low of 99,230 yuan/mt. Investors are watching support at the 40-day moving average tonight as they look out for the US weekly initial jobless claims data.
Zinc: Some SHFE zinc has registered losses for three consecutive days and we expect the trend to continue in the short term. Support at the 40-day moving average may be tested tonight.
Tin: SHFE tin followed its base metals peers lower today as funds exited the market ahead of Chinese New Year. We see support at 147,000 yuan/mt while it is expected to trade under pressure in the short term.
Lead: We see pressure at 19,200 yuan/mt for SHFE lead while support may temporarily hold at 19,000 yuan/mt. Downside risks remained.
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