SHANGHAI, Mar 5 (SMM) -
Copper: As SHFE copper stayed firm with support at the 52,000 yuan/mt level, we expect the 1805 contract to trade at 52,000-52,600 yuan/mt today, with LME copper at $6,880-6,950/mt. Spot discounts are seen slightly smaller at 180-130 yuan/mt today with the recovery of downstream consumption.
Aluminium: With the US dollar index falling below the 90 level, LME aluminium is expected to test the five-day moving average with resistance at the 10- and 20-day moving averages today, trading at $2,137-2,164/mt. The SHFE aluminium contract is expected to be rangebound today with upward potential, trading at 14,380-14,500 yuan/mt. Spot discounts are seen at 170-130 yuan/mt.
Zinc: LME zinc went down below the 60-day moving average and remained weak. We see the contract trading at $3,340-3,390/mt today and SHFE zinc at 25,850-26,250 yuan/mt. In the physical market, the 0# common brand is set to trade at a discount of 120-80 yuan/mt and Shuangyan brand is set to trade at a discount of 70-40 yuan/mt.
Nickel: Nickel prices face pressure due to high social inventory of stainless steel as well as maintenance works and productions cuts at some mills in March. We expect SHFE 1805 contract to trade at 101,300-103,000 yuan/mt today while the LME nickel to rangebound. Spot prices are expected at 100,600-102,200 yuan/mt.
Tin: LME tin is expected to stay rangebound in the short term with support at $21,000/mt and resistance at $22,000/mt. SHFE tin moved around the short-term moving average last Friday, and we expect it to trade at 146,500-148,000 yuan/mt today.
Lead: With pressure from moving averages, SHFE lead is expected to test support at the 40-day moving average and trade at 18,700-18,900 yuan/mt today.
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