SHANGHAI, Aug. 14 (SMM) – Base metal prices on the SHFE market are expected to come under downward risks on Aug. 14, Shanghai Metals Market foresees.
“A combination of stabilizing exchange rate of yuan, strong dollar, falling oil prices and weak demand will pressure Shanghai’s price, despite of a stable LME market,” SMM says.
Chinese currency’s yuan turned to stabilize against the dollar following Chinese official’s remarks on yuan’s appreciation.
“The current high SHFE/LME price ratio on base metals will also trigger arbitrage trading, and this will also weigh down Shanghai base metals prices,” SMM adds.
Copper: 39,000-39,700 yuan per tonne
Aluminum: 12,080-12,160 yuan per tonne
Lead: 13,250-13,350 yuan per tonne
Zinc: 14,850-15,000 yuan per tonne
Tin: 107,000-109,000 yuan per tonne
Nickel: 81,000-82,500 yuan per tonne
Note: All prices above are forecasts for most actively-traded contracts on each market.
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