SHANGHAI, Mar 7 (SMM) – While SHFE aluminium fell 0.77% and tin and zinc edged down today, lead rose 0.67% as copper and nickel inched up.
The ferrous complex fell across the board with hot-rolled coil slipping 2.4%. Coking coal dropped 2.3%, rebar went down 1.6%, and coke fell 1.5%. Iron ore edged down slightly.
Copper: Support is seen at the five-day moving average during the today as SHFE copper moved downwards. The US ADP employment report may give more guidance to the market tonight, when the support level will continue to be tested.
Aluminium: SHFE aluminium touched a low at 14,200 yuan/mt today as investors poured in short positions following a reduction in alumina prices set by Aluminum Corp of China (Chalco). Slower recovery of downstream consumption due to winter cuts, later Chinese New Year this year, bad weather as well as the Chinese People’s Political Consultative Conference (CPPCC) and the Chinese National People’s Congress (CNPC) further added to the bearish sentiment. However, we believe the demand is still there and that an uptick is expected in the second quarter.
Zinc: With pressure from short bets and a sluggish consumption recovery, SHFE zinc fell to a low of 25,295 yuan/mt and closed at 25,300 yuan/mt today. We expect it to test the support at 25,300 yuan/mt tonight.
Tin: SHFE tin touched a low at 146,150 yuan/mt today amid an overall bearish market sentiment. We expect it to stay under pressure in the short term with support at 146,000 yuan/mt.
Lead: SHFE lead touched a high at 18,775 yuan/mt following an inflow of long positions, but dropped to a low at 18,660 yuan/mt under pressure from the weak performance of ferrous metals. We expect it to trade rangebound tonight with a weakening LME lead.
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