SMM Morning Comments (Jan 22)

Published: Jan 22, 2018 09:35

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SHANGHAI, Jan 22 (SMM)－

Copper: LME copper sees resistance and is expected to retrace further towards $7,000/mt. With weak spot demand and excess inventory, LME copper is expected to trade at $7,010-7,065/mt while SHFE 1803 is to trade at 53,100-53,650 yuan/mt. Spot discounts are to move at 150-100 yuan/mt today.

Aluminium: We see LME aluminium trading at $2,200-2,230/mt today, according to historical records afterthe shutdown of the US government. SHFE aluminium is expected to trade at 14,500-14,700 yuan/mt today. Spot discounts are expected at 210-170 yuan/mt.

Zinc: LME zinc is expected to trade at 3,380-3,430/mt while SHFE zinc is expected to trade at 25,900-26,350 yuan/mt today.

Nickel: We see LME nickel trading in a narrow range today. SHFE 1805 is to trade at 96,800-98,600 yuan/mt with spot prices at 96,500-98,300 yuan/mt.

Lead: SHFE lead sees upper pressure at 19,600 yuan/mt and is expected to trade at 19,300-19,550 yuan/mt today.

Tin: LME tin is likely to move higher after it broke through $20,500/mt. SHFE tin is expected to trade at 145,000-146,500 yuan/mt today. Spot prices are seen at 144,000-145,500 yuan/mt, supported by stockpiling demands before the long Chinese New Year holiday.

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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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