SHANGHAI, Mar 20 (SMM) – Base metals rode on momentum from one another and narrowed declines from yesterday. Most nonferrous metals, except nickel, closed lower. Lead fell 0.7%, tin and zinc dipped 0.6%, and copper and aluminium edged down.
The ferrous complex rebounded and reduced losses. Iron ore dropped over 2%, coke fell over 1%, rebar and hot-rolled coil edged down slightly, while coking coal rose 0.5%.
Copper: Prices fell to a low of 51,130 yuan/mt. Faced with a potential trade war, copper is likely to trade rangebound tonight. Investors will take cues from data of downstream recovery and the German Zentrum für Europäische Wirtschaftsforschung (ZEW) Economic Sentiment Index for March.
Aluminium: SHFE aluminium edged down today and touched a low of 13,930 yuan/mt. We see it testing 14,000 yuan/mt tonight. Investors will take guidance from changes in inventory in the short term.
Zinc: The SHFE 1805 contract rebounded from a slump during the day but faced pressure from the five- and 10-day moving averages. We expect it to remain rangebound tonight.
Nickel: Investors with short positions led SHFE nickel to a low of 100,600 yuan/mt in the morning. The contract rebounded in the afternoon and touched a high above 102,000 yuan/mt. We expect it to continue to trade rangebound tonight.
Tin: SHFE tin edged down during the day and touched a low of 143,710 yuan/mt in the afternoon. Support at the 143,500 yuan/mt level may be tested in the short term.
Lead: SHFE lead traded below the moving averages during the day amid an overall bearish sentiment. We expect the contract to weaken further tonight and test support at the 18,200 yuan/mt level.
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
