Home / Metal News / Copper / SMM Evening Comments (Jan 24)
SMM Evening Comments (Jan 24)
Jan 24,2018 18:09CST
price review forecast
SMM Evening Comments (Jan 24)

SHANGHAI, Jan 24 (SMM)-Nonferrous metals futures traded lower this afternoon, only nickel and tin edging up slightly. Copper led the loss among base metals with a 1.7% drop, while zinc lost 1%. Aluminium and lead slightly dropped.

The ferrous complex saw mixed trading today. While iron ore dropped 1%, coking coal, hot-rolled coil and rebar rose around 1%. Coke also gained 0.5%.

Copper: Chinese smelters have powered up productions of late with inventories building up, while downstream restocking ahead of Chinese New Year has yet to start, leaving a bearish fundamental. However, we do not see SHFE copper fall dramatically further in the short term as a correction is likely. LME copper inventory changes and the purchasing managers’ index (PMI) in the Eurozone will give cues to investors.

Aluminium: The SHFE aluminium open interest went down to 759,552 lots, lowest level seen since August last year as longs closed their positions in a bid to avoid risks. We see no clear direction and investors were reluctant to jump back in.  

Nickel: SHFE nickel is expected to stay rangebound tonight. Investors are watching out for the US existing home sales in December and the EIA weekly crude oil inventory.

Zinc: SHFE zinc is expected to stop falling tonight, following its western counterpart. Short bets were added throughout the day today due to sluggish Chinese domestic demand.

Tin: SHFE tin was stable today with resistance at 147,000 yuan/mt and support at 145,000 yuan/mt. It is set to stay rangebound in the short term.

Lead: SHFE lead still sees support from multiple moving averages following the drop today. We expect the contract to recover some loss ground tonight, tracking 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 


For queries, please contact Frank LIU at liuxiaolei@smm.cn

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

Related news