SHANGHAI, Feb 1 (SMM) – Nonferrous metals futures edged down with SHFE aluminium leading the loss with a 1% drop. The ferrous complex saw mixed trading with hot-rolled coil up over 1% and rebar up slightly. Iron ore was down nearly 1%.
Copper: Investors have reduced their long bets today, dragging SHFE copper lower. We expect copper prices to stay rangebound in the short term as the US weekly initial claims data to give cues to the market tonight.
Nickel: We expect SHFE nickel to remain under pressure tonight following an outflow of 165 million yuan today. The US ISM manufacturing index is set to give guidance to the market tonight.
Zinc: SHFE zinc has recorded three consecutive days of loss as longs exited the market. However, firm LME zinc prices and still decent macroeconomic situation gave us confidence in the support of the five-day moving average tonight.
Tin: SHFE tin was lower following the drop across the metals complex. We expect the contract to be under pressure but see support at 147,000 yuan/mt.
Lead: SHFE lead may be able to break through the pressure level at 19,600 yuan/mt tonight following the lead of its LME counterpart.
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