SMM Evening Comments (Jan 8)

SHANGHAI, Jan 8 (SMM)－

Nonferrous metals traded lower today except for the slight rise in zinc price. While lead was stable, aluminium and copper dropped close to 1%. Nickel and tin also edged down.  

Ferrous metals saw a rather strong movement today. Iron ore and coking coal rose almost 3%, while coke, hot-rolled coil and rebar rose nearly 1%.

Copper: We see room for SHFE copper prices to go lower in the near term as changes in open interest could be key. There is little economic indicators tonight.

Aluminium: We keep bearish at aluminium price in the short term considering bad fundamentals but still need to focus on supporting strength at 15,000 yuan/mt.

Lead: SHFE lead recorded a long upper shadow with upper pressure at 19,500 yuan/mt. The price is estimated to keep rangebound at high level with below support from moving averages.

Zinc: Funds remained bullish on zinc consumption as LME prices gave support to that of SHFE. The Chinese contract is expected to trade at the 26,000 yuan/mt level tonight.

Tin: SHFE tin is testing support of the 10-day moving average below and will keep rangebound in the near term.

Nickel: SHFE nickel saw an outflow of funds up to 175 million yuan today while the price support was seen at the 10-day moving average. We expect the contract to be rangebound later tonight. 

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