SMM Morning Comments (Jan 16)

Published: Jan 16, 2018 09:37 (GMT+8)

Save

SHANGHAI, Jan 16 (SMM)－

Copper: LME copper is expected to trade at $7,150-7,250/mt today while the SHFE 1803 copper is to trade at 54,430-55,200 yuan/mt. We see spot discounts at 220-140 yuan/mt today as buying interest weakened following higher futures prices.

Nickel: LME nickel is expected to stay rangebound today and its Chinese counterpart is to trade at 99,200-100,600 yuan/mt. Spot prices are seen at 98,900-100,200 yuan/mt.

Zinc: Supported by expectation of supply tightness, LME zinc is set to trade at $3,405-3,455/mt today. However, downside risk remains for the SHFE contract due to weak domestic consumption. We see SHFE zinc at 26,100-26,550 yuan/mt today.

Aluminium: LME aluminium is expected to trade at $2,220-2,250/mt while SHFE aluminium is to trade at 14,980-15,150 yuan/mt with firm support of the 20-day moving average. Spot discounts are to move at 200-160 yuan/mt today.

Tin: A weaker US dollar has provided support for the LME tin contract, which may aim for the $20,500/mt level. SHFE tin, on the other hand, is expected to be steady at 144,000-146,000 yuan/mt today with spot prices at 144,000-145,000 yuan/mt.

Lead: SHFE lead is trading with resistance at the 20-day moving average, but it may edge up with the lead of rising LME lead.

For editorial queries, please contact Daisy Tseng at daisy@smm.cn
For more information on how to access our research reports, please email service.en@smm.cn

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.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

1 hour ago

Substantial Price Spread but "Prices Without Market" - Pre-Holiday Stockpiling Nearly Halted [SMM Copper Scrap Weekly Review]

[SMM Analysis: Attractive Price Spread but "High Prices, No Deals" - Pre-Holiday Stockpiling Nearly Halted] This week (the last few trading days after the Mid-Autumn Festival holiday and before the National Day holiday), the copper scrap market headed into the long holiday amid a "three highs" pattern of high copper prices, high premiums, and a wide price spread between futures contracts. The tax-inclusive price difference between copper cathode and copper scrap remained in a high range of 3,926-4,526 yuan/mt. On paper, the substitution economics of copper scrap over copper cathode remained significant, but throughout the week, the market did not see increased volumes despite the attractive price spread. Instead, it exhibited typical pre-holiday characteristics of "inflated price spread, sluggish trading, and stalled stockpiling" ......

1 hour ago

Chile copper mine strike risks heat up, adding further disruption to ore supply 【SMM Copper Morning Meeting Summary】

SMM Morning Meeting Minutes: LME copper: opened at $14,426/mt, hit a high of $14,483/mt, a low of $14,399.5/mt, and closed at $14,425.5/mt, down 0.36%. Trading volume was 17,000 lots, with open interest at 258,000 lots, a decrease of 1,360 lots from the previous trading day, reflecting long liquidation. The most-traded SHFE copper 2611 contract: opened at 109,280 yuan/mt, hit a high of 109,790 yuan/mt, a low of 109,280 yuan/mt, and closed at 109,420 yuan/mt, up 0.11%. Trading volume was 23,000 lots, with open interest at 184,000 lots, a decrease of 975 lots from the previous trading day, reflecting long liquidation.

1 hour ago

Cooling rate hike expectations keep copper prices steady overnight [SMM Copper Morning Comment]

1 hour ago