SMM Morning Comments (Feb 1)

Published: Feb 1, 2018 09:18

Save

SHANGHAI, Feb 1 (SMM) -

Copper: The US dollar is unlikely to fall further in the short term as the Federal Reserve Board implied an interest rate increase in March. The physical market remained weak as buyers were cautious ahead of Chinese New Year. We expect SHFE copper to trade at 52,500-53,000 yuan/mt today with spot discounts at 140-90 yuan/mt.

Aluminium: We see SHFE aluminium trade lower at 14,280-14,420 yuan/mt today with spot discounts at 130-90 yuan/mt, with weakening fundamentals. LME aluminium, on the other hand, is expected to trade at $2,195-2,220/mt.

Zinc: The upward momentum for zinc prices has become weaker amid a lack of stronger cues. However, the positive fundamentals remain. We expect LME zinc to trade at $3,495-3,545/mt today and SHFE zinc at 26,550-26,950 yuan/mt. The 0# common brand zinc is likely to trade at discounts of 90-60 yuan/mt against the 1802 contract, whereas the Shuangyan brand is seen at discounts of 50-20 yuan/mt.

Nickel: The improving fundamentals for nickel remain as China’s manufacturing purchasing managers’index (PMI) has stayed above the 50-point mark for 18 months. We expect the SHFE 1805 contract to trade at 101,700-103,800 yuan/mt today with spot prices at 101,000-102,500 yuan/mt.

Tin: We see support at $21,600/mt for LME tin but also pressure at $22,000/mt, whereas the SHFE counterpart is set to trade at 149,000-151,000 yuan/mt today. Spot market is seen stable, too, with sellers reluctant to let go cargoes easily.

Lead: Spot lead is seen stable today at 19,400-19,500 yuan/mt with limited supply but weak restocking demand.

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

copper aluminium lead zinc tin 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.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

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

Related News

22 hours ago

"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"

Premier Li Qiang presided over an executive meeting of the State Council to study policy measures for promoting effective investment. The meeting noted that promoting effective investment plays an important role in stabilizing economic growth and strengthening momentum for development. It is necessary to innovate and improve policy measures, and intensify efforts to enhance the efficiency of utilizing funds such as central budget investments, ultra-long-term special treasury bonds, local government special bonds, and new-type policy-based financial instruments. In conjunction with formulating and implementing the 15th Five-Year Plan

22 hours ago

"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the plenary sessions of the Party’s 20th Central Committee, fully and faithfully apply the new development philosophy, strengthen top-level design, build computing power interconnection nodes oriented toward national hub periods, major strategic regions, and key industries, establish a system of computing power interconnection nodes, improve the efficiency and service level of public computing power resources, and promote high-quality development of computing power.

22 hours ago

Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions

After intensive indirect consultations, the new round of nuclear talks between Iran and the US in Muscat, the capital of Oman, has achieved phased progress. It is reported that during this round of talks, the Iranian and US delegations did not meet directly. Instead, Omani Foreign Minister Badr acted as an intermediary, conveying a series of core proposals, strategic concerns, and policy positions to the other side. The atmosphere at the talks was tense yet efficient. According to preliminary on-site assessments, although both sides continue to negotiate over specific terms, they have reached a consensus on the key objective of "continuing dialogue."

22 hours ago