SMM Morning Comments (Mar 13)

Published: Mar 13, 2018 09:39

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SMM Morning Comments

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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Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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