SMM Morning Comments (Mar 19)

Published: Mar 19, 2018 09:47

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SMM Morning Comments

SHANGHAI, Mar 19 (SMM) –

Copper: LME copper lost the support from the five- and 10-day moving averages as the US dollar strengthened, while its SHFE counterpart performed no better. We expect LME copper to trade at $6,830-6,900/mt today, with SHFE copper at 51,400-51,900 yuan/mt. Spot discounts are seen smaller at 250-200 yuan/mt.

Aluminium: LME aluminium gradually fell with resistance at the $2,100/mt level. We expect it to trade at $2,075-2,095/mt today. SHFE aluminium climbed up slowly and hovered around the 14,000 yuan/mt level. We see it trading at 13,950-14,150 yuan/mt today. Spot discounts are seen at 170-130 yuan/mt.

Zinc: LME zinc consolidated with strong resistance at the $3,300/mt level as investors held back. We expect it to be rangebound at $3,225-3,275/mt today. SHFE zinc rebounded from lows but failed to stand above the 25,000 yuan/mt level. We see it trading at 24,700-25,150 yuan/mt today. The 0# common brand is likely to trade at a discount of 90-60 yuan/mt and Shuangyan brand at a discount of 50-30 yuan/mt.

Nickel: With support from the steadily declining inventory, we see LME nickel remaining rangebound with downward pressure today and SHFE nickel 1805 contract trading at 102,000-103,500 yuan/mt today. Spot prices are seen at 101,200-103,000 yuan/mt.

Tin: LME tin hovered around at the 60-day moving average and closed at $21,985/mt last Friday, slightly lower than the day before. We expect it to remain rangebound with support at $20,600/mt today. SHFE tin inched up with resistance at five-day moving average last Friday. We see it trading rangebound at 144,000-145,500 yuan/mt today.

Lead: SHFE lead inched up above the 10-day moving average last Friday, and we expect it to remain rangebound today and test resistance at 18,600 yuan/mt. With pressure from shorts and a stronger US dollar, LME lead dropped to a low of $2,370/mt last Friday. It is set to test the $2,400/mt level today.

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copper aluminium nickel zinc lead tin

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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