SHANGHAI, Feb 13 (SMM) – Base metals futures on the SHFE performed strongly today with nickel leading the gains with some 2% rise. Copper was up 1.5% while aluminium and zinc climbed close to 1%. Lead, however, edged down slightly.
Ferrous metals prices rose across the board as iron ore increased by over 1% and coking coal went up 0.6%. Hot-rolled coil was up 0.53% while rebar and coke inched up.
Copper: The SHFE 1804 copper contract is expected to stay rangebound at high levels tonight as investors reduced their short bets during the day.
Aluminium: SHFE aluminium met resistance at 14,500 yuan/mt as it tried to climb up during the day, while support is seen at the five- and 10-day moving averages. As funds continued to exit the market ahead of Chinese New Year, it remains to be seen whether the current level can be sustained.
Nickel: Expectation of better stainless steel demand after Chinese New Year as well as maintenance at some nickel pig iron plants would support nickel prices in the short term.
Lead: While support is seen at 18,900 yuan/mt for SHFE lead, we expect the contract to stay weak tonight with pressure at the five- and 60-day moving averages.
Tin: The holiday mood has kicked in as trading was thin and we expect SHFE tin prices to be stable.
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