SHANGHAI, Aug. 13 (SMM) – Base metal prices on the SHFE market are expected to keep rallying on Aug. 13, Shanghai Metals Market foresees.
“A falling dollar after easing of concerns on US interest rate hike will help Shanghai base metal prices lurch higher,” SMM says.
The US dollar index fell to touch 96, a 5-week low, bolstering base metal market.
Moreover, Chinese currency yuan was continuing depreciating sharply against the dollar on Aug. 12, triggering worries over the growth in world’s second largest economy.
The SHFE/LME base metal price ratio is moving higher following price gains in Shanghai market against declines on the LME, and this will result in position closing by shorts, also favoring price in the Shanghai market.
Copper: 39,700-40,200 yuan per tonne
Aluminum: 12,200-12,250 yuan per tonne
Lead: 13,400-13,550 yuan per tonne
Zinc: 14,900-15,100 yuan per tonne
Tin: 107,000-109,000 yuan per tonne
Nickel: 81,800-83,000 yuan per tonne
Note: All prices above are forecasts for most actively-traded contracts on each market.
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