SHANGHAI, Mar 12 (SMM) – Nonferrous metals mostly gained today, as SHFE nickel led the increases with a rise of 3%. SHFE copper rose close to 1%. Zinc, tin, and lead inched up. Aluminium dropped over 1%.
The ferrous complex continue to fall across the board as coke and coking coal led the slump and closed 4% lower. Iron ore dropped nearly 3%, rebar slipped almost 1%, and hot-rolled coil fell slightly.
Copper: As investors added their long bets, SHFE copper surged to 52,560 yuan/mt but met resistance at the 20-day moving average this morning. The price closed at 51, 960 yuan/mt today and is expected to hover around 52,000 yuan/mt tonight.
Aluminium: As high social inventories drove more short bets into the market, SHFE aluminium fell to a low of 14,035 yuan/mt and closed at 14,065 yuan/mt. The slow recovery of downstream demand also provided support for short bets.
Nickel: SHFE nickel traded rangebound and closed at 103,640 yuan/mt, up 3,270 yuan/mt from the previous day. We see prices hovering at high levels tonight.
Zinc: The SHFE 1805 zinc contract gained 1.5% compared to the open price during the day, but with limited upward room due to the addition of short bets. We expect prices to weaken tonight as LME zinc declines.
Lead: SHFE lead closed at 18,445 yuan/mt but continued to face downward pressure with resistance the the five-day moving average. It will trade rangebound tonight.
Tin: SHFE tin consolidated at 146,800-147,200 yuan/mt and closed at 146,970 yuan/mt. We see it trading rangebound in the short term.
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