SHANGHAI, Mar 15 (SMM) –

Copper: After it gained support at the five- and 10-day moving averages, LME copper is expected to hit and test the 20-day moving average in the short term. Prices are seen at $6,980-7,030/mt today. SHFE copper is set to test support at the five-day moving average and trade at 52,580-53,000 yuan/mt today. We see spot prices at a premium of 50-100 yuan/mt.

Aluminium: We see SHFE aluminium under pressure in the short term but with limited downward room in the medium term as low aluminum prices slow the recovery of production. The contract is expected to trade at 13,800-14,000 yuan/mt with spot discounts at 70-30 yuan/mt today, while LME aluminium is likely to trade at $2,080-2,105/mt.

Zinc: LME zinc rallied twice last night but slid to a low of $3,206/mt near closing due to pressure from shorts. We expect it to edge down to $3,190-3,240 today. SHFE zinc also faced resistance from shorts and touched a low of 24,665 yuan/mt. Prices are expected to remain rangebound at 24,500-25,000 yuan/mt today with possible downward room.

Nickel: Supported by a steadily declining inventory and an increase in cancelled warrants, LME nickel is seen trading rangebound in the short term. The SHFE 1805 contract is expected to trade at 103,500-105,000 yuan/mt today with spot prices at 103,000-104,300 yuan/mt.

Tin: LME tin edged down and touched a low of $21,065/mt overnight. We expect it to test support at $21,000/mt with resistance in the short term. SHFE tin came under pressure from shorts and dropped below 145,000 yuan/mt to 144,700 yuan/mt last night. We see prices declining further to 144,000-145,500 yuan/mt today.

Lead: After LME lead registered a long upper shadow overnight amid weak upward momentum, we see it remaining rangebound between the five- and 10-day moving averages today. SHFE lead rose but faced strong resistance from the 10-day moving average overnight. We expect it to consolidate and test the 18,500 yuan/mt level today, and trade at 18,300-18,550 yuan/mt.

For editorial queries, please contact Daisy Tseng at daisy@smm.cn 
For more information on how to access our research reports, please email service.en@smm.cn