SMM Morning Comments (Mar 13)

SHANGHAI, Mar 13 (SMM) –

Copper: LME copper edged down as prices of crude oil weakened. SHFE copper tested the 52,000 yuan/mt level. We expect copper prices to trade rangebound. In the physical market, spot prices are seen rangebound at a discount of 30 yuan/mt to a premium of 20 yuan/mt today. 

Aluminium: As SHFE aluminium remains weak, LME aluminum is expected to test the $2,100/mt level and trade at $2,085-2,110/mt today. We see further downward room in SHFE aluminium until consumption recovers. It will trade at 13,830-14,010 yuan/mt today with spot discounts at 100-60 yuan/mt.

Zinc: LME zinc avoided a slump as bearish sentiments eased. We see it trading at $3,220-3,270/mt today, with SHFE zinc trading rangebound at 24,700-25,150 yuan/mt. The 0# common brand will trade at a discount of 80-50 yuan/mt and Shuangyan brand will trade at a discount of 30-0 yuan/mt.

Nickel: LME nickel received support from a steadily decreasing inventory, and is expected to trade rangebound at high levels today. The SHFE 1805 contract is seen trading at 103,000-104,500 yuan/mt today. Spot prices are expected at 102,200-104,000 yuan/mt.

Tin: LME tin hit a low of $21,310/mt overnight due to poor results from the US non-farm payrolls. It will trade rangebound with support at $21,000/mt today. SHFE tin traded rangebound with pressure between the five- to 10-day moving averages overnight, and will continue hover at 146,000-147,500 yuan/mt today.

Lead: With pressure from shorts, LME lead fell to a low of $2,311.5/mt overnight. It will continue to face pressure with support at $2,300/mt today. Affected by LME lead, SHFE lead hit this month's record low of 18,105 yuan/mt, with support at 18,100 yuan/mt. We see it trading at 18,100-18,300 yuan/mt today.

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