SMM Evening Comments (Jan 2)

Published: Jan 2, 2018 18:32

Save

SHANGHAI, Jan 2 (SMM)－ Nonferrous metals were mixed on the first trading day of 2018 with nickel outperforming others with a 2% rise. Zinc and tin rose around 1% while lead dropped 0.73% and copper dropped 0.63%.

On the other hand, iron ore led the ferrous complex with a 2.6% gain. Rebar, coking coal and hot-rolled coil all rose some 2%, while coke was up over 1%.

Copper: Copper saw the technical downward corrections today but we expect such decline is limited. US Markit manufacturing purchasing managers’ index (PMI) for December is likely to give guidance to the market tonght.

Aluminium: Aluminium ingots inventory has set historic new high. The price is expected to have limited upward momentum. Short-selling at high price with small positions is recommended.

Lead: Lead recorded a long lower shadow and traded among 4 moving averages today. It is expected to test support strength at below 19,000 yuan/mt tonight.

Zinc: The SHFE zinc contract was volatile today while the overall sentiment remained bullish. However, increasing inventory level is something to watch as the market enters the traditional off season. It is expected to follow LME and stay firm tonight.

Nickel: SHFE nickel price is expected to trade higher tonight with little news on the macro level.

Tin: The tin contract on the SHFE is set to test the 150,000 yuan/mt level as it broke all moving averages. We see tin to stay firm in the near term.

For editorial queries, please contact Daisy Tseng at daisy@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

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.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

11 hours ago

"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"

Premier Li Qiang presided over an executive meeting of the State Council to study policy measures for promoting effective investment. The meeting noted that promoting effective investment plays an important role in stabilizing economic growth and strengthening momentum for development. It is necessary to innovate and improve policy measures, and intensify efforts to enhance the efficiency of utilizing funds such as central budget investments, ultra-long-term special treasury bonds, local government special bonds, and new-type policy-based financial instruments. In conjunction with formulating and implementing the 15th Five-Year Plan

11 hours ago

"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the plenary sessions of the Party’s 20th Central Committee, fully and faithfully apply the new development philosophy, strengthen top-level design, build computing power interconnection nodes oriented toward national hub periods, major strategic regions, and key industries, establish a system of computing power interconnection nodes, improve the efficiency and service level of public computing power resources, and promote high-quality development of computing power.

11 hours ago

Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions

After intensive indirect consultations, the new round of nuclear talks between Iran and the US in Muscat, the capital of Oman, has achieved phased progress. It is reported that during this round of talks, the Iranian and US delegations did not meet directly. Instead, Omani Foreign Minister Badr acted as an intermediary, conveying a series of core proposals, strategic concerns, and policy positions to the other side. The atmosphere at the talks was tense yet efficient. According to preliminary on-site assessments, although both sides continue to negotiate over specific terms, they have reached a consensus on the key objective of "continuing dialogue."

11 hours ago