SMM Evening Comments (Mar 22): Shanghai Nonferrous Metals Closed Mixed as Market Awaits Results of Fed's March Meeting Tonight

Telah Terbit: Mar 22, 2023 18:00
Sumber: SMM
Shanghai nonferrous metals closed mixed in day trading.

SHANGHAI, Mar 22 (SMM) - Shanghai nonferrous metals closed mixed in day trading. On the macro front, the US dollar index continued to weaken. Since the US Treasury Secretary promised to bail out the banking sector if the risks should deteriorate further, the banking turmoil in Europe and the United States has eased, and the risk aversion in the market has abated. The traders are awaiting the results of Federal Reserve's March Meeting tonight.

SHFE copper added 1.02%, aluminium gained 0.22%, lead lost 0.13%, zinc edged down 0.51%, tin ticked up 1.90%, and nickel advanced 1.41%.

Copper: The most-traded SHFE 2304 copper closed up 1.02% or 690 yuan/mt at 68,080 yuan/mt, with open interest up 4,205 lots to 157,789 lots.

In the spot market, as the backwardation of front-month contract narrowed, the goods holders held prices firm and refrained from selling. Some traders managed to bargain down prices and close deals.

Aluminium: The most-traded SHFE 2304 aluminium closed up 0.22% or 40 yuan/mt at 18,150 yuan/mt, with open interest up 12,004 lots to 220,177 lots.

On the fundamentals, the domestic supply side has recovered slightly, and the current improvement in downstream consumption has driven the rapid destocking of aluminum.

Lead: The most-traded SHFE 2304 lead closed down 0.13% or 20 yuan/mt at 15,340 yuan/mt, with open interest down 6,107 lots to 23,788 lots.

SHFE lead softened, and goods holders were not in a rush to close deals. Faced with stop premiums brought by limited supply in the market, downstream players only purchased as needed and preferred to signed long-term orders. The spot transactions barely improved.

Zinc: The most-traded SHFE 2304 zinc closed down 0.51% or 115 yuan/mt at 22,255 yuan/mt, with open interest up 4,117 lots to 98,067 lots.

Zinc prices weakened today, and the discounts/premiums remained flat from the previous trading day. Since the bearish sentiment lingered in the market, downstream enterprises refrained from purchasing, leading to slack transactions.

Tin: The most-traded SHFE 2304 tin closed up 1.90% or 3,530 yuan/mt at 189,130 yuan/mt, with open interest up 2,586 lots to 52,882 lots.

As tin futures prices picked up, more smelters to offer quotes in the morning session, but they were less willing to make shipment. The spot transactions were slack amid poor inquiries.  

Nickel: The most-traded SHFE 2304 nickel closed up 1.41% or 2,470 yuan/mt at 177,310 yuan/mt, with open interest down 2,699 lots to 54,758 lots.

In the spot market, Jinchuan nickel was quoted in premiums of 7,800-8,000 yuan/mt, with an average of 7,900 yuan/mt, up 250 yuan/mt from the previous trading day. NORNICKEL nickel was in premiums of 2,800-3,000 yuan/mt, with an average of 2,900 yuan/mt, up 50 yuan/mt from the prior trading day. The spot transactions were fewer than expected as the demand for pure nickel remained sluggish. For nickel briquette, the prices stood between 175,200-175,600 yuan/mt, up 50 yuan/mt from the previous trading day. 

[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.]

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