SMM Morning Comments (Jan 3)

Published: Jan 3, 2018 09:34

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SHANGHAI, Jan 3 (SMM)－

Copper: LME copper prices continued to see corrections as longs took profits. We expect LME copper to trade at $7,170-7,280/mt today and SHFE copper at 54,800-55,400 yuan/mt. Spot copper discounts are to narrow to 150-90 yuan/mt following lower futures prices.

Aluminium: Weaker momentum is seen for LME aluminium to trade higher and it is expected to hover in the range of $2,250-2,285/mt. SHFE aluminium is set to follow suit and trade at 15,100-15,300 yuan/mt today. We see spot discounts at 380-340 yuan/mt.

Nickel: LME nickel has traded above several moving averages and it is expected to stay rangebound. The SHFE 1805 nickel is to trade at 98,500-99,900 yuan/mt with spot price at 97,800-99,300 yuan/mt.

Zinc: LME zinc started the year at a 10-year high with declining inventory. We expect such strong prices to stimulate more supply into the market. While LME zinc is set to trade at $3,310-3,360/mt today, its Chinese counterpart sees weaker performance with sluggish demand and potentially higher inventory. We expect SHFE zinc to trade at 25,650-26,100 yuan/mt today.

Lead: No clear direction is seen in the lead market and we see rangebound trading continue in the near term.

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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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