SMM Morning Comments (Apr 9)

Published: Apr 9, 2018 10:07

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SMM Morning Comments

SHANGHAI, Apr 9 (SMM) –

Copper: LME copper rebounded to a high of $6,870/mt last Friday due to a weaker US dollar. In the short term, the upward trend for copper prices will face resistance as a China-US trade war continues to brew. We see LME copper trading at $6,740-6,800/mt with the SHFE 1805 contract at 50,000-50,600 yuan/mt today. On the spot market, we see premiums slightly lower at 10-60 yuan/mt today as restocking for the Qingming Festival holiday ended

Aluminium: After registering a record low in eight months, LME aluminium touched a high at $2,063 /mt last Friday. We expect LME aluminium to trade between $2,060-2,100/mt today and the SHFE 1806 contract at 14,180-14,380 yuan/mt. Spot discounts are seen between 70-30 yuan/mt.

Zinc: LME zinc is expected to trade between $3,225-3,275/mt with pressure from the five-day and 10-day moving averages. SHFE zinc, on the other hand, is expected to trade between 24,500-25,000 yuan/mt today.

Nickel: LME nickel touched a high of $13,320/mt last Friday as the greenback weakened. We expect SHFE nickel 1807 contract to trade at 98,200-100,500 yuan/mt today with spot prices at 97,500-100,000 yuan/mt.

Lead: LME lead faced resistance at $2,400/mt last Friday, and we see it trading rangebound today. Pressure from macroeconomy remains as investors take cautions in the short term.

Tin: LME tin hovered around the five- and 10-day moving averages during the Qingming holiday, and closed at $20,965/mt last Friday. It is expected to trade rangebound with resistance at $21,300/mt and support at $20,600/mt in the short term. SHFE tin is likely to trade at 144,500-146,200 yuan/mt today with pressure at the 60-day moving average and support at 143,500 yuan/mt.

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Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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