Exclusive: SMM Morning Comments (Dec 13)

Published: Dec 13, 2017 10:35

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Exclusive: SMM Morning Comments (Dec.12)

SHANGHAI, Dec13 (SMM)－

Copper: Lower copper inventory supported the rebound of LME copper prices last night, while SHFE copper also recovered to 52,000 yuan/mt. LME copper is estimated to move at $6,640-6,695/mt today and the main contract of SHFE copper is set to trade between 52,000-52,500 yuan/mt. For the spot market, downstream companies are now willing to replenish stocks as copper prices rebounded. Premiums in Shanghai have gone up and are likely to trade at 50-120 yuan/mt today from yesterday's discount 20 to premium 100 yuan/mt.

Aluminium: While LME aluminium is expected to stay volatile at a low level between $2,000-3,000/mt today, the most liquid SHFE aluminium contract is likely to move in the rage of 14,060-14,300 yuan/mt with a potential downward pressure. Spot market may see discounts narrowed to 120-80 yuan/mt.

Zinc: LME zinc is to trade at $3,130-3,175/mt today. While the market awaits the release of the US CPI data in November last night, SHFE zinc market climbed with bulls increasingly taking positions. SHFE zinc is estimated to move at 24,920-25,350 yuan/mt today, although caution would be recommended.

Nickel: LME nickel is set to trade in a narrow range with downstream demand little changed. The main contract of SHFE nickel is to move at 88,600-90,500 yuan/mt, with spot prices at 88,900-90,400 yuan/mt.

Lead: SHFE lead recorded a long lower shadow and moved to upper Bollinger Band. With strong pressure at this position, it is estimated to stay volatile at high level today.

Tin: LME tin is set to test the current support level at $19,000/mt today with the possibility of falling to $18,600/mt. SHFE tin, on the other hand, moved lower last night to 136,500 yuan/mt and it’s set to only trade between 136,000-138,000 today. For the spot market, tin would maintain a downward trend and trade at 137,000-138,000 yuan/mt today.

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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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