SHANGHAI, Dec 28 (SMM)－Nonferrous metals rallied this afternoon with aluminium leading the gains with 3% surge. Nickel rose nearly 2% while lead, copper, tin and zinc were up over 1%.
Ferrous metal continued to weaken today with rebar losing over 1%. Coking coal dropped 1.2% and coke was down nearly 1%. Iron ore edged up slightly.
Copper: Bulls continued to add long positions today, driving the SHFE contract close to 56,000 yuan/mt at one point. Such momentum is mainly due to fund speculations and we see further upward room in the near term.
Aluminium: Bulls are dominant in adding positions today. Influenced by improved overseas marginal demand and upcoming preliminary determination of US anti-dumping measures against China’s ordinary alloy plate rolling, the market has an enlarging expectation on overseas shortage of refined aluminium. Hence LME aluminium performed well and it drove SHFE aluminium. With great increase of China’s aluminium export orders, reverse arbitrage with few positions is recommended in the short term.
Zinc: Zinc price was led by other base metals today but whether the momentum can sustain remains to be seen. We expect SHFE zinc to be rangebound tonight.
Nickel: The SHFE nickel would test support at its current level at 96,810 yuan/mt tonight, while the US weekly initial jobless claims figure is set to give further cues to the market.
Tin: SHFE tin surged following the overall base metals movement today and broke through the 60-day moving average. However, we see the upper resistance at 146,000 yuan/mt.
Lead: Lead price moved above all moving averages with below adhesive 5-day and 10-day moving averages. With good tendency of LME lead, SHFE lead is expected to keep a strong rangebound.
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