Exclusive: SMM Morning Comments (Dec 26)

Published: Dec 26, 2017 09:52

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SHANGHAI, Dec 26 (SMM)－

Copper: Copper price is likely to stay firm in the near term but pressure has started to build, especially with a lacklustre physical market. SHFE copper is expected to trade at 54,400-55,000 yuan/mt today. Spot discounts are likely to go deeper at 300-240 yuan/mt today as sellers remained keen to offload their cargoes toward the year-end.

Aluminium: SHFE aluminium is set to be rangebound today as LME is closed. Market participants would look for support at the five-day morning average and the movement in the ferrous complex. It is expected to trade at 14,550-14,750 yuan/mt while spot discounts are seen at at 310-270 yuan/mt.

Nickel: The market trading is light at year-end as downstream demand would stay weak. SHFE nickel sees upper pressure at the five-day moving average and support at the 10-day moving average. It is expected to keep trading in a narrow range today. The spot price is to move at 93,000-94,800 yuan/mt.

Zinc: We continue to see investors reducing positions for SHFE zinc at year-end with tighter cash. While support is seen at the 40-day moving average, the contract is likely to trade at 25,150-25,600 yuan/mt today.

Lead: SHFE lead is trading under the pressure at 10-day moving average but support is seen at the 19,000 yuan/mt level.

Tin: SHFE tin is expected to stay rangebound today, at 137,000-138,500 yuan/mt. In the spot market, supply from Yunnan province was limited and we expect the price to be at 138,000-139,500 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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