SMM Morning Comments (Jan 29)

Published: Jan 29, 2018 09:37

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SMM Morning comments (Jan 29)

SHANGHAI, Jan 29 (SMM) -

Copper: The physical market has been sluggish with the approaching Chinese New Year dragging copper prices. However, a weak US dollar would prevent them from dropping dramatically. We expect the SHFE 1803 contract to trade at 53,000-53,500 yuan/mt today and the LME copper at $7,060-7,110/mt. Spot discounts are seen stable at 160-100 yuan/mt.

Aluminium: We see LME aluminium trade at $2,230-2,270/mt today with a rather weak support from the five-day and 10-day moving averages. SHFE aluminium, on the other hand, is set to stay range-bound at 14,550-14,750 yuan/mt today with spot discounts at 150-110 yuan/mt.

Nickel: Little change is seen in the fundamentals as we expect the SHFE 1805 contract at 103,500-104,800 yuan/mt today. Spot prices are seen at 102,000-103,800 yuan/mt.

Zinc: LME zinc is expected to trade at $3,450-3,500/mt today with good fundamentals. However, its Chinese counterpart sees weaker support in the physical market and is unlikely to follow. We expect SHFE zinc to trade at 26,000-26,400 yuan/mt today.

Tin: LME tin continues to see strong momentum with a target at $22,000/mt, supporting the SHFE contract, which is expected to trade at 148,000-150,000 yuan/mt today. Spot prices are also firm at 147,000-149,000 yuan/mt.

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copper aluminium SHFE 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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