SMM Evening Comments (Apr 13)

Published: Apr 13, 2018 17:58

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SMM Evening Comments

SHANGHAI, Apr 13 (SMM) – Nonferrous metals futures saw mixed trading on Friday April 13. SHFE nickel jumped close to 2%, aluminium rose 1.85% while zinc dropped nearly 2%. Lead lost 0.81%, copper fell 0.67% while tin dipped.

The ferrous complex closed higher across the board with rebar up 1.62%. Hot-rolled coil increased 1.6%, coke edged up 1.56%, iron ore rose over 1% and coking coal inched up.

Copper: The SHFE 1806 contract mostly traded above moving averages as SHFE nickel led gains among the base metals today. Technically, SHFE copper hit the five- and 10- day moving averages but faced pressure, while the KDJ indicator expanded downwards. We expect it to trade rangebound and test the 50,700 yuan/mt level overnight.

Aluminium: As arbitrage funds entered the market, SHFE aluminium was relatively strong during the day. We expect such performance to continue in the short term with a trading range at 14,150-14,750 yuan/mt next week. SMM will also monitor the overseas markets and China's inventories.

Zinc: As shorts and longs took turns to reduce their positions, SHFE zinc traded rangebound and closed higher. With a lack of clear directions, SHFE zinc is likely to remain rangebound tonight with support at the 23,500 yuan/mt level.

Nickel: As longs entered the market, the SHFE 1807 contract gained 1.94% and closed at 1,970 yuan/mt. We expect it to extend its strong performance with a daily inflow of 228 million yuan and support from averages below. Tonight, investors will take cues from the US' consumer sentiment index for April.

Tin: SHFE tin edged down as it failed to maintain its upward trend in the afternoon. It tried to rebound but faced pressures during the day. We see it trading rangebound in the short run.

Lead: SHFE lead registered a tall lower shadow with pressure from moving averages. It traded actively at 18,200-18,300 yuan/mt during the day. We expect it to consolidate tonight.

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copper aluminium nickel zinc lead tin

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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