SHANGHAI, Jan 5 (SMM)－ Nonferrous metals for the most part moved higher today except a slight drop in copper. Zinc rallied in the afternoon with 1% rise at closure while lead and aluminium were up some 0.6%. Both nickel and tin edged up.
Ferrous metals were softer with a mixed result. Coking coal and coke were up slightly, while hot-rolled coil dropped 0.67%. Rebar and iron ore also slipped.
Copper: SHFE copper was trading around the 55,000 yuan/mt level today and we see room for downward movement as bulls pull back. US nonfarm payrolls change in December is likely to give guidance to the market tonight.
Aluminium: SHFE aluminium may see further downward movement due to weak fundamentals. We expect prices to move between 14,850 yuan/mt and 15,350 yuan/mt next week.
Zinc: SHFE zinc was firm today as longs have confidence following high LME prices. It is expected to stand above 26,000 yuan/mt tonight.
Tin: SHFE tin sees upper pressure at 146,000 yuan/mt and is expected to rangebound at high level in the near term.
Lead: Lead saw frim support from several moving averages and is likely to rangebound and test the 19,500 yuan/mt above.
Nickel: SHFE nickel is expected to trade in a narrow range tonight. In addition to the US nonfarm payroll changes in December, investors would also look out for its monthly data of durable goods orders in November and unemployment rate in December.
For editorial queries, please contact Daisy Tseng at firstname.lastname@example.org
For more information on how to access our research reports, please email email@example.com