SHFE Nickel Rises Over 3%, Leading among Base Metals (2017-10-20)

SHANGHAI, Oct. 20 (SMM)－Today see a mixed open for ferrous metals. After being volatile in morning session, the rise amount in the afternoon has been enlarged. Up to daytime closure see a slump across the board. Thereinto, hot-rolled coil and RB rise over 4%, iron ore rises over 5%, coke and coking coal rise nearly 3%. SHFE Base Metals also see a mixed open. SHFE Aluminium keeps volatile and strong tendency. Other commodities have an obvious upward impetus. SHFE Nickel rises over 3%, leading among base metals.

Concerning capital flow, ferrous metals attract 102 million capital inflow, showing great effect. Thereinto, iron ore attracts 500 million capital and RB attracts 450 million capital.

Late this day, need to focus on the annual data of US Existing Home Sales in September. Since the phenomenon that decline of existing house sales in wind-disaster area will probably continue in next few months, the whole market may perform less well than previous years. The annual data of US Existing Home Sales in September is estimated to drop.

Tin: Today see a universal rise of domestic commodities. Nonferrous metals advance triumphantly. SHFE Tin halts previous several days’ weak tendency and rebounds slightly, with resistance above 146,000 yuan per tonne and support below 144,000 yuan per tonne. It will probably maintain rebounding tendency in the short term.

Nickel: SHFE Nickel is expected to keep volatile at high points during night session. In night need to focus on the annual data of US Existing Home Sales in September.

Xiong Yilin, SMM Nickel analyst says, the inflow of SHFE Nickel today is 256 million. Influenced by ferrous stimulation and continuous reduction of registered warehouse warrant in SHFE Nickel, bears are dominant, SHFE Nickel is expected to keep volatile at high level.

Lead: SHFE Lead recorded a relative long lower shadow and moved below each moving average. There exists some support with 20-day weekly average. In night it is expected to maintain interval reorganization.

Zinc: SHFE Zinc is boosted during daytime by ferrous metals. Defeating weak tendency, it takes 40-day moving average above. Driven by strong upward tendency of foreign markets, in night it may probably attempt to take adhesive pressure of above 5-day and 10-day moving average.

Aluminium: Influenced by drop of cost and inventories and ferrous violent rebound, aluminium price halts drop and rebounds slightly. The price is estimated to keep volatile in wide range. SHFE Aluminium is estimated to keep volatile within 15,900-16,500 yuan per tonne, since SMM learned consumption side has not recovered yet and whether inventories will continue to drop remains a problem.

Copper: Copper price keeps strong and it is likely to struggle in the short term. Need to focus on the degree of recognition of downstream enterprises after the copper price stabilizes.

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