SHANGHAI, Mar 26 (SMM) –
Copper: While the market was rattled by the rising trade tension, crude oil saw a big jump in prices, which may give certain support to copper prices. We expect LME copper to trade at $6,620-6,670/mt today with SHFE copper at 49,700-50,200 yuan/mt. In the physical market, spot discounts are seen at 140-220 yuan/mt with thin trading activity as downstream consumers take a watch-and-wait approach.
Aluminium: We expect LME aluminium to stay rangebound at lows with trading range at $2,045-2,065/mt today, while the SHFE contract is expected to trade at 13,700-13,870 yuan/mt. Spot discounts are seen at 120-80 yuan/mt.
Zinc: As crude oil prices gained and the US dollar fell under the threat of a potential trade war, LME zinc met pressure from the five- and 10- moving average last Friday. We expect it to trade at $3,185-3,235/mt today. Supported by a diminishing inventory, SHFE zinc inched up last Friday. But given the concerns of a brewing trade war, it is seen trading at 24,350-24,850 yuan/mt today.
Nickel: LME nickel fell to a low of $12,900/mt last Friday amid a bearish sentiment. We expect it to continue to trade with pressure and test support at $12,700/mt today. The SHFE nickel 1805 contract is likely to trade at 97,000-99,200 yuan/mt with spot prices at 96,500-98,700 yuan/mt today.
Tin: Worries of a trade war weighed on base metals last Friday, as LME tin traded rangebound and resistance at five-day moving average. SHFE tin also hovered at a low level last Friday. It is likely to trade at 141,000-143,000 yuan/mt today.
Lead: With pressure from several moving averages above, LME lead is expected to trade rangebound within the day. Last Friday, SHFE lead rebounded to 18,550 yuan/mt as investors cut their short bets. We expected it to trade around the 10-day moving average today.
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