SHANGHAI, Jan 29 (SMM) – Nonferrous metals futures remained strong on Monday January 29 as SHFE zinc led the gains with over 3% rise. While SHFE tin and nickel were up some 2%, lead rose 1.5%. Aluminium, however, edged down slightly in the afternoon.
The ferrous complex was weaker with coking coal down almost 2%. Both iron ore and coke were down some 1% while hot-rolled coil edged up.
Copper: SHFE copper climbed following the lead of SHFE zinc but pressure was seen at the 40-day and 60-day moving averages. We expect the contract to continue edging up while the US personal income data in December to be released tonight would give further cues to investors.
Aluminium: SHFE aluminium remained the one with weakest fundamentals among nonferrous metals. We expect the contract to be rangebound in the short term but downside risks remain in the medium term.
Nickel: We expect SHFE nickel to be rangebound at high levels tonight as investors look out for the monthly US personal income and outlays data.
Tin: SHFE tin was supported by investors adding more long bets today and it is expected to stay firm in the short term. We see pressure at 153,000 yuan/mt.
Zinc: Bulls flooded the SHFE 1803 zinc contract as it touched a high of 27,230 yuan/mt today. Over 500 million yuan entered the 1803 and 1804 contracts with good fundamentals. We expect SHFE zinc to be rangebound tonight.
Lead: While SHFE lead has traded above multiple moving averages, we see little aid in the fundamentals. We expect the contract to be rangebound at high levels tonight following its LME counterpart, but downside risk remains.
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