SHFE base metals move up, lead surges 3.7% (Dec 12)

SHANGHAI, Dec 12 (SMM)－Nonferrous metals trading  on the SHFE was supported by bullish news today and the upward momentum in the morning continued in the afternoon. Lead led the gains with a 3.7% surge while nickel rose over 1%. Zinc and copper also registered close to 1% increase. Tin and aluminium, however, saw slight drops.

In the ferrous complex, trading was mixed on Tuesday with coke and coking coal up slightly. Iron ore and rebar dropped close to 1% while hot rolled coil moved down slightly. 

Copper: Copper prices are likely to be range-bound in the near term. Market participants will look for US PPI monthly data in November for direction tonight. 

Aluminium: The bears and bulls look set to hold on to their positions with current aluminium prices. Taking a wait-and-see approach is recommended. 

Nickel: The US PPI monthly data in November again is set to guide the nickel movement tonight. 

Zinc: Both the bears and bulls have been reducing their positions today and zinc is likely to trade below 25,000 yuan/mt tonight with limited upward momentum. Without the direction of fundamentals, funds seemed to be trading in a prudent way. 

Tin: Tin saw a weak performance today and the support level of 13,700 yuan/mt is likely to be tested in the near term.

Lead: Lead has finally reached the 19,000 yuan/mt level today with bullish sentiment dominating the market due to news of smelters' limited production. However, pressure remains at the 60-day moving average.

For news cooperation, please contact us by email: gaotian@smm.cn or service.en@smm.cn.