SHANGHAI, Sept. 29 (SMM)－SHFE base metals closed with gains on September 29, with the exception of SHFE aluminum which finished slightly lower. SHFE copper and SHFE lead surged nearly 3% to lead price gains of base metals.
Ferrous metals were mixed. SHFE rebar and DCE coke rose over 1%, and SHFE hot-rolled coil gained over 2%. DCE iron ore and coking coal increased about 1%.
Copper: Today, copper remains high. Today is the last trading day before the national day holiday so the bears reduce positions and leave, leading rising of copper price. Need to focus foreign market during holiday. In night need to focus final value of University of Michigan CCI in September.
Xu Jinqiao, SMM copper analyst says, today SHFE copper continues rising tendency yesterday, mainly because the influence of Indonesian miner’s strike. And today is the last trading day before the national day holiday so the bears reduce positions and leave, leading rising of copper price.
Aluminum：It is recommended to wait and see with short positions. Need to focus on industrial news and tendency of LME Aluminum.
Zinc:SHFE Zinc keeps conservative and get boosted later. Hedging emotion is obvious before the hliday. Need to focus on LME-3 Zinc for follow-up development of zinc price.
Kang Cheng, SMM Zinc Analyst says, today SHFE Zinc surges main because next week is the holiday of national day and mid-autumn festival. With many uncertain factors, hedging emotion causes bears’ closing positions, leading rising of metal price.
Nickel: Due to the national day holiday, no night session for SHFE Nickel today.
Yang Bo, SMM Nickel Analyst says, Today influenced by anticipation of stable growth of China economy, as well as the US tax reform, price of base metals rise consequently. For the market news, the second slab casting machine for one million tonnes’stainless steel project has been gone through simulated production before real operation, which lifts nickel price. Leaving of bears after making profits is also a reason of rise of nickel price.
Tin: Today is the last trading day before the national day holiday but Shanghai Rubber experienced down limit. Panic emotion spread to the entire futures market. Nonferrous metals keep weak. SHFE Tin remains stable and volatile. After the holiday need to focus on foreign market. Currently, the tendency is still in volatile situation for short term, with resistance point 148,000 yuan per tonne and supporting point 144,000 per tonne.
Lead: SHFE Lead surges during the day. Need to be alerted at pulling back from high point. Since today is the last trading day before the national day holiday, need to focus on foreign market during the holiday. SHFE Lead is expected to be volatile at high points and accumulate to go up. In night need to focus final value of University of Michigan CCI in September.
For the reasons of metals rise recently, Zhang Huawei, from Dongwu Futures says the bears are not willing to struggling in market and choose to close positions before the holiday. Copper price accelerated to surge after breaking previous volatile range. USD Index drops with Trump’s biggest tax reform policy over past 30 years. Return of“Trump trade”boosts the copper price. Depreciation of RMB recently accelerates also causes capital’s purchase of copper. Strong tendency of zinc and lead also promotes rise of copper.
For fund flow, the pre-holiday affects again. Huge capital of 6.883 billion ran away from the futures market. Daily capital net outflow of ferrous index reaches 2.824 billion. As for single commodity, RB index ranks the first with 1 billion’s outflow, followed by coke, iron ore.
Late this day, need to focus on US annual rate of PCE index in August and Eurozone non-seasonally adjusted rate of CPI in September. On Saturday will see the official number of Caixin manufacturing PMI. Next week is the holiday of national day and mid-autumn festival. Three major futures exchanges will be closed from night of Sept.29th without session.
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