SMM Morning Comments (Jan 16)

Published: Jan 16, 2018 09:37

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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.

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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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