SHANGHAI, Apr 4 (SMM) – Nonferrous metals traded weakly on Wednesday April 4 as zinc led losses with a drop over 1.1%. Lead lost almost 0.7%, aluminium fell nearly 0.3%, and nickel, copper, and tin edged down.
The ferrous complex saw wider drops than nonferrous metals as iron ore slumped some 4.2%. Rebar dipped over 1.1%, and hot-rolled coil slid nearly 1%. Coke and coking coal inched up over 1%.
Copper: SHFE copper traded rangebound, weighed down by crude oil. We see SHFE copper continue trading rangebound tonight or inched down slightly with overseas market.
Aluminium: As Sino-US trade tension worsened, SHFE aluminium tumbled to a low of 13,935 yuan/mt. It rebounded to the 14,000 yuan/mt level as shorts exited the market at lows, and closed at 14,010 yuan/mt.
Zinc: SHFE zinc closed lower after it lost support from all moving averages as a result of negative sentiment in the market.
Nickel: Tonight, investors should monitor the US ADP employment data for March, the ISM Non-manufacturing Index in March and this week's crude oil inventory changes from the US Energy Information Administration.
Tin: The SHFE 1805 contract edged down to close at 145,250 yuan/mt with both short and long positions declining. It is likely to continue trading rangebound with support at 143,500 yuan/mt in the short term.
Lead: The SHFE 1805 contract saw thin trading today. Affected by the US’ Section 301 tariffs on China, the contract fell below the 10-day moving average and edged down to close at 18,640 yuan/mt.
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