SMM Evening Comments (Jan 17)

Published: Jan 17, 2018 18:44

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SHANGHAI, Jan 17 (SMM)－SHFE lead stood out from the performance of other nonferrous metals on Wednesday afternoon, with a 0.6% rise. Nickel was down 2% and copper was down almost 2%. Aluminium dipped 1.8%. Zinc and tin also slid slightly.

The ferrous complex also dipped. Coking coal fell 2% despite a slight rise of rebar. Coke and iron ore dipped almost 1% and hot-rolled coil slightly slipped.

Copper: SHFE copper is expected to remain weak tonight with investors cutting their long bets. The US monthly industrial output data in December may give cues to the market tonight.

Nickel: Nickel saw an outflow of 122 million yuan today, while the US data is also set to give further guidance in the night trading session.

Aluminium: We maintain our view that SHFE aluminium is in a downward trend in the short term as both trading volumes and open interest dropped.

Zinc: Zinc traded between the 10-day and 20-day moving averages and it is expected to move downwards and trade at the 26,000 yuan/mt level tonight. Downstream consumption remained weak, leaving investors little confidence in adding to their bets.

Tin: SHFE tin dropped slightly today with below support at 144,000 yuan/mt.

Lead: SHFE lead recovered the loss yesterday but the upward momentum seemed limited today. We see resistance at the 20-day moving average.

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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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