SHANGHAI, Jul. 30 (SMM) - Base metals diverged this past week. Copper, zinc and nickel fell while aluminum, lead and tin remained firm thanks to fundamentals. Zinc posted the most significant decline. SHFE zinc posted a 4-day losing streak as a large number of longs retreated from the market, down 3.2%. Positions of the most active zinc on the SHFE decreased over 110,000. The SMMI.Zn was down 2.08%. Downstream and traders entered the market at lows, narrowing spot discounts.
SHFE 1609 nickel lost most early gains, with spot traders replenishing goods at lows. The SMMI.Ni fell 1.35%. LME copper and SHFE 1609 copper dropped below the 20-day moving average. Spot premiums rose. The SMMI.Cu slid 1.22%. Lead and tin smelters were affected by environmental protection inspections, tightening supply. Cargo holders held back goods, driving up lead and tin futures. The SMMI.Sn rose 2.35%, and the SMMI.Pb increased 2.66%. SHFE aluminum fell initially before rising. Spot premiums rose to RMB 200/mt due to falling inventories and traders hoarding stocks, in turn pushing up futures. The SMMI.Al increased 0.45%. The SMMI slipped 0.62%. Base metals are expected to fluctuate widely next week.