SHANGHAI, Nov 3 (SMM) – SHFE nonferrous metals rose for the most part on Tuesday November 3 ahead of the high-profile US presidential election.
Shanghai base metals mostly advanced on Tuesday November 3. Copper rose 1.51%, aluminium strengthened 0.65%, zinc climbed 1.37%, lead added 0.42% and tin firmed 1.82%, while nickel underperformed with a 0.56% loss.
SMM data showed that a total of 91 vessels carrying 14.79 million mt of iron ore arrived at major Chinese ports during October 25-31, SMM estimates. This was up 1.72 million mt from the previous week, and up 3.23 million mt from the same period last year. The amount of arrivals in Shandong jumped 53%, or 1.54 million mt, on the week, while those in Tangshan fell 1.07 million mt.
Copper: The most-traded SHFE 2012 copper contract finished the day 1.51% higher at 51,800 yuan/mt, with trading volume shrinking 4,000 lots to 111,000 lots. Oil prices gained more than 2% Monday, shaking off earlier losses, as the United States heads into a contentious U.S. presidential election. The oil market has been under pressure in recent days, hit by concerns about weaker fuel demand as several European countries went into lockdown to curb the coronavirus. New infections spiked in the United States as well. US manufacturing activities registered the largest increase since 2018 in October, which, to some extent, boosted market sentiment. However, investors remained cautious ahead of the US presidential election.
Aluminium: The most-liquid SHFE 2012 aluminium contract rose 0.65% to end the day at 14,760 yuan/mt, and is expected to maintain at high levels in the short term.
Zinc: The most-active SHFE 2012 zinc contract finished the day 1.37% higher at 19,950 yuan/mt, with open interest rising 4,962 lots to 99,689 lots. Rising oil prices slightly boosted market sentiment, and potential supply risks resulted from the escalating tensions between China and Australia also provided support. The December zinc contract may test the 20,000 yuan/mt mark again tonight.
Nickel: The most-traded SHFE 2012 nickel closed 0.56% lower on the day at 115,850 yuan/mt. Investors are now awaiting the result of the US presidential election.
Lead: The most-traded SHFE 2012 lead contract added 0.42% to close the day at 14,385 yuan/mt. Whether the contract could return above the 10-day moving average tonight will be monitored.
Tin: The most-liquid SHFE 2101 tin contract ended the day 1.82% firmer at 145,820 yuan/mt, with open interest rising 884 lots to 146,000 lots, as tight domestic supply boosted tin prices. The contract is expected to fluctuate around 146,000 yuan/mt tonight.
