SHANGHAI, Feb 27 (SMM) – Nonferrous metals futures saw mixed trading on Tuesday February 27 with SHFE nickel leading the gain with 1% rise. SHFE lead was up close to 1% while tin and zinc inched up. Copper and aluminium were down slightly.
The ferrous complex recovered some lost ground in the afternoon with iron ore closing 0.64% lower. Hot-rolled coil was up over 1% while coking coal, coke and rebar registered gains of close to 1%.
Copper: The SHFE 1804 contract moved as investors on both sides of the market took turns to square their positions, touching a high at 53,440 yuan/mt. We expect it to stay rangebound in the short term while market participants take cues from US Federal Reserve chair Jerome Powell tonight as he speaks to the Congress on US economy.
Aluminium: The upward momentum seen in SHFE aluminium today was not sustainable even as investors added to their long bets. However, destocking in high season and relatively stable costs of production would keep aluminium prices firm in the next month.
Nickel: The SHFE 1805 nickel contract was supported by longs today and touched a high at 106,210 yuan/mt. We expect it to stay rangebound tonight following an inflow of 224 million yuan.
Lead: SHFE lead was supported by post-CNY restocking but appreciating yuan exerted some pressure. We see a firm support at the 19,400 yuan/mt level and expect the contract to stay at current levels tonight.
Tin: SHFE tin remains under pressure of the 20-day moving average as it is set to trade rangebound in the short term.
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