SMM Morning Comments (Feb 9)

Published: Feb 9, 2018 09:21

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SMM Morning Comments

SHANGHAI, Feb 9 (SMM) –

Copper: Stock market slump, lower crude oil prices, and a surge in LME copper inventory gave shorts more confidence overnight. We expect LME copper to trade at $6,810-6,880/mt today and SHFE copper at 51,700-52,200 yuan/mt. Weak fundamentals may lead spot premiums lower to 30-40 yuan/mt today.

Aluminium: We expect LME aluminium to trade rangebound at $2,158-2,193/mt with support at the 60-day moving average. The SHFE 1804 aluminium contract is to trade at 14,260-14,460 yuan/mt while spot discounts are stable at 130-90 yuan/mt.

Nickel: While downstream consumption stayed weak ahead of the Chinese New Year holiday next week, decreasing LME inventory has supported nickel prices. We see the SHFE 1805 contract at 99,800-101,800 yuan/mt today with spot prices at 99,000-100,800 yuan/mt.

Zinc: The 40-day moving average has provided firm support for LME zinc but lower oil prices and volatile US dollar led investors to be cautious. We see LME zinc at $3,390-3,440/mt today and SHFE zinc at 26,200-26,600 yuan/mt.

Lead: We see both LME and SHFE lead to trade around the 60-day moving average with stable spot prices at 19,050-19,200 yuan/mt.

Tin: LME tin sees support at the $21,200/mt level while SHFE tin is set to trade at 148,000-149,500 yuan/mt. Spot prices are seen at 146,500-148,500 yuan/mt.

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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.

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