SMM Morning Comments: Can Rebound of Metal Price Continue?

Published: Sep 26, 2017 09:47

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Overnight, USD rallies during session, refreshing the highest record since Sept 5th.

SHANGHAI, Sept. 26 (SMM) – Overnight, USD rallies during session, refreshing the highest record since Sept 5^th. Shanghai base metals closed higher without exception. LME base metals were mixed and continued to rebound since last daytime, during which Future Zinc rebounded dramatically, leading rise among basic metals. But for the basic situation, downward trend has not been changed and the rebound space may be limited.

Copper: Bulls and Bears of London Copper keep standoff at 6400-6500 USD per ton with relative low rebound energy. It is expected to keep volatile in narrow ranges. Shanghai Copper spot premium remains strong and the decrease of stock is good for cooper price. It is expected today that London Copper keeps 6465-6520 USD per ton and Shanghai Cooper 1711 Interval keeps 50200-50700 RMB per ton. For spot, today the stocks may reached the highest level before the National Day and dealers are strongly supporting premiums. It is expected that the premium keeps 150-200 RMB per ton today.

Aluminium : The main part of Shanghai Aluminum rises slightly, struggling between 5/10/20 days moving averages. It is expected to run between 16400-16670 RMB per ton and the spot discount between 230-190 RMB per ton.

Lead: Shanghai Futures Lead runs around 5-day moving average with relatively strong support of various moving averages below. It is expected to keep volatile at high points during the day.

Zinc: Shanghai Zinc is relatively strong, with all bars above all moving average. Near the long holiday, investors tend to reduce stock. Shanghai Zinc may run between 25250 and 25700 RMB per ton during the day.

Tin: Overnight Shanghai Tin continued to rise with the current resistance at 147000 RMB per ton. It is expected to remain relatively strong in a volatile today between 145500-147000 RMB per ton.

Nickel: No marco material data or events during session of Asian and European time. The main contradiction of nickel’s fundamentals is still the decrease of sales of stainless steel and the retracement of price of finished products. It is expected the nickel price keeps volatile at the bottom and it may follow other metals and stabilize temporarily at 60-day moving average, with Shanghai Nickel 1801 Main 84300-85300 RMB per ton and Spot Nickel 84500-85500 RMB per ton.

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copper aluminium lead zinc tin nickel

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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