SMM Morning Comments (Jan 10)

Published: Jan 10, 2018 09:28

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SHANGHAI, Jan 10 (SMM)－

Copper: There is still room for downward movement for copper prices and we see LME copper likely to trade towards the $7,000/mt level. We expect the LME contract to trade at $7,070-7,130/mt today and the SHFE contract at 54,400-54,900 yuan/mt. Spot premiums are to rise to 30-80 yuan/mt today.

Zinc: LME zinc began to slip after touching $3,400/mt and we expect it to trade at $3,315-3,365/mt today. SHFE zinc is dominated by funds outflow with bearish fundamentals. We see the price at 25,800-26,300 yuan/mt today, when investors are watching out for China’s consumer price index (CPI) and producer price index (PPI) in December.

Aluminium: LME aluminium continued to drop and the 20-day moving average may not provide enough support today. The price is expected to trade at $2,140-2,165/mt while the SHFE aluminium is expected to trade at 14,910-15,100 yuan/mt today. In the spot market, the discounts are to move at 160-120 yuan/mt.

Nickel: LME Nickel traded around the five-day moving average and is expected to rangebound at high level today. The main contract of SHFE nickel is expected to trade at 98,900-101,000 yuan/mt with spot price at 98,500-100,500 yuan/mt.

Lead: While SHFE lead went below the five-day moving average, several other moving averages still seen solid enough.

Tin: LME tin saw upper pressure at $20,000/mt and is expected to rangebound at high level in the short term. The SHFE contract is expected to trade at 144,000-145,500 yuan/mt today whereas the spot market at 142,500-144,000 yuan/mt sees limited supply.

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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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