SHANGHAI, Apr 3 (SMM) – Nonferrous metals saw mixed trading today. SHFE zinc fell 1.2%, lead slid over 1%, nickel dipped, while aluminium gained 1.6%. Copper and tin inched up.
Most ferrous metals fell. Iron ore lost 1.6%, coking coal and hot-rolled coil edged down slightly, while rebar and coke closed a bit higher.
Copper: The SHFE 1805 contract traded rangebound around moving averages and closed at 50,370 yuan/mt, notching a more stable performance than yesterday. SHFE copper will receive some support as the upcoming Qingming Festival holiday drives market sentiment. We see it trading rangebound in the short term as downstream markets recover.
Zinc: SHFE zinc closed0.8% lower, at 24,710 yuan/mt while LME zinc regained lost ground. Tonight, SHFE zinc is likely to recover some losses but continue to face pressure from the five- and 20-day moving averages.
Nickel: SHFE nickel gained 0.04% with a daily capital inflow of 139 million yuan. It is expected to continue to trade with pressure from the 20-day moving average tonight. Investors should take cues from the results of the eurozone's PMI for March.
Lead: We see SHFE lead testing support at the 10-day moving average tonight. Investors also should monitor LME lead's weak performance.
Tin: As upper pressure grew, SHFE tin struggled at moving averages and closed at 145,400 yuan/mt. We see SHFE tin trading rangebound with resistance at the 60-day moving average and support at 143,700 yuan/mt.
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