SHANGHAI, Apr 3 (SMM) –
Copper: After it was closed for two days, LME copper climbed up after it opened today. SHFE copper mostly traded above the 10-day moving average, with support at the five- and 10-day moving averages overnight. We see it trading at 50,100-50,600 yuan/mt with spot premiums at 0-50 yuan/mt today.
Aluminium: As LME aluminium opened higher, we expect it to rise and test support at the five-day moving average today and trade at $2,005-2,030/mt. As inventories continue to decline and prices of coal and alumina stabilise, we expect SHFE aluminium to trade rangebound at 13,950-14,150 yuan/mt today, with spot discounts at 110-70 yuan/mt.
Zinc: As a potential trade war looms, LME zinc is expected to trade cautiously at $3,265-3,310/mt today. SHFE zinc tested resistance at 25,000 yuan/mt with limited momentum overnight. It edged down to close at 24,850 yuan/mt. As the Qingming Festival approaches, we see SHFE zinc trading rangebound at 24,700-25,100 yuan/mt today with cautious investors in the market.
Nickel: SHFE nickel rebounded above the 100,000 yuan/mt level overnight. As inventories contine to shrink and China gradually resumes its consumption of stainless steel, we expect the SHFE 1807 contract to trade at 99,000-101,000 yuan/mt today with strong resistance from moving averages, with spot prices at 98,300-100,300 yuan/mt. We see LME nickel rising today.
Tin: LME tin faced some pressure from the 40-day moving average but is likely to extend its strong performance in the short run. The SHFE 1805 contract traded rangebound with pressure from the 40- and 60-day moving average. We expect it to trade between 145,000-146,500 yuan/mt today.
Lead: SHFE lead weakened overnight but received support at the five-, 10-, and 20-day moving averages. Following the plunge in the US stock market overnight, SHFE lead is likely to dip further today.
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