SHANGHAI, Jan 4 (SMM)－ Nonferrous metals rallied this afternoon and for the most part finished higher at closure. Lead led the gains with 1% rise while copper and zinc went up slightly. Aluminium slipped, however.
The ferrous market saw coke outshine others with 3% jump. Coking coal rose 0.7% and iron ore also edged up. On the other hand, rebar dropped 0.68% and hot-rolled coil slipped 0.56%.
Copper: SHFE copper jumped following the release of a second batch of permits for metal scrap importers. It is believed that under the new policy copper scrap supply would remained limited. The US weekly initial jobless claims and the Markit services purchasing managers’ index in December are likely to give guidance to the market tonight.
Aluminium: We maintain our view that short-selling with small positions when prices go higher is recommended due to the rather weak fundamentals.
Zinc: SHFE zinc was firm today as longs were confident amid higher LME prices. We see the Chinese contract test upwards at 26,000 yuan/mt tonight.
Nickel: SHFE nickel is expected to keep rangebound at high levels tonight, when investors would look out for the US weekly initial jobless claims and its ADP employment change in December.
Lead: Lead continued to traded above all moving averages. With rising LME lead, it is expected to keep rangebound at high level and is probable to break through 19,500 yuan/mt.
Tin: SHFE tin would stay rangebound with support at 143,000 yuan/mt and pressure at 146,000 yuan/mt.
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