SHANGHAI, Mar 22 (SMM) – Nonferrous metals futures registered gains for the most part on Thursday March 22 except for SHFE nickel which closed slightly lower. SHFE lead gained 3%, zinc rose 1.6% and copper climbed close to 1%.
The ferrous complex was weaker as iron ore saw a narrower rise of 1%. Coke edged up but coking coal fell close to 2%. Hot-rolled coil dipped almost 1% and rebar closed 0.7% lower.
Copper: SHFE copper met resistance at the 51,350 yuan/mt level today as it sought upward momentum against the weaker US dollar. However, pressure at the five-day moving average remains, and we see support at 51,000 yuan/mt.
Aluminium: A first dip of aluminium inventory since the start of February, according to SMM survey, may buoy the market slightly. However, pressure at the 14,000 yuan/mt level put some longs on hold before they have a clearer indication of better downstream demand.
Nickel: Multiple moving averages gave pressure to SHFE nickel today and weakened longs’ confidence. As the contract touched a low of 101,090 yuan/mt, it remains to be seen if the support at the 60-day moving average can be sustained. Investors will also take cues from the eurozone’s manufacturing purchasing managers’ index in March and the weekly initial jobless claims in the US tonight.
Zinc: A lack of clear market direction is set to leave SHFE zinc rangebound in the short term. However, we see pressure at the 25,000 yuan/mt level.
Tin: SHFE tin traded higher towards the 10-day moving average today following a weaker US dollar and a generally bullish market for metals. We expect that the current resistance at 145,000 yuan/mt may be tested in the near term if the greenback continues its decline.
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