SMM Evening Comments (Jan 22)

SHANGHAI, Jan 22 (SMM)－

Nonferrous metals saw a mixed performance today. Nickel led gains with a 2% rise, followed by tin with a 1.4% gain. Zinc edged up 1% and copper and lead rose slightly. Only aluminium saw a decline today.

Ferrous metals saw narrower rises. Coke rose 1.5% while rebar and hot-rolled coil moved higher slightly over 1%. Iron ore gained 0.7% while coking coal dipped marginally.

Copper: SHFE copper rallied today and saw an inflow of 185 billion yuan and is expected to break through 54,000 yuan/mt tonight. There is little news on the macro level tonight.

Aluminium: As inventory accumulates, aluminium is expected to remain weak tonight while the prices are likely to rebound in the medium term taking into account the LME tendency.

Nickel: We see nickel testing resistance at the upper 10-day moving average.

Zinc: SHFE zinc got a funds inflow today. With light trading and weak fundamentals, zinc price is hard to rally greatly. It is expected to keep trading in a narrow range tonight.

Lead: SHFE lead got firm support of below moving averages. With strong tendency of LME lead, the price is going to challenge 19,500 yuan/mt tonight.

Tin: Tin rose among base metals today and will test the upper resistance at 147,000 yuan/mt tonight.

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