SMM Evening Comments (May 4)

Published: May 4, 2018 18:04

Save

SMM Evening Comments

SHANGHAI, May 4 (SMM) – Nonferrous metals futures saw mixed trading on Friday May 4 with SHFE zinc leading the loss with a dip of nearly 2%. Nickel fell almost 1%, while copper, aluminium, lead, and tin inched up.

The ferrous complex saw iron ore dropping over 1%. Rebar lost nearly 1%, and hot-rolled coil slid almost 0.7%. Coke and coking coal went up slightly.

Copper: The SHFE 1807 contract climbed up during the day and recovered the losses overnight. It technically stuck between moving averages and stood above the 40-day moving average. It is expected to rise further tonight. Investors would look for guidance from LME copper prices tonight.

Aluminium: A lack of fundamental support saw the rise of SHFE 1807 aluminium prices unsustainable this morning. We expect the contract to trade at 14,450-14,800 yuan/mt next week, as the market continues to look out for further development of the US sanctions on Rusal, the results of US-China trade talks and China’s destocking speed.

Zinc: The SHFE 1807 contract dipped to a low of 23,130 yuan/mt with pressure from shorts. A plunging LME zinc in the afternoon added to the pressure. We see the contract testing support at 23,000 yuan/mt tonight.

Nickel: The SHFE 1807 nickel contract traded rangebound below the daily moving average and fell to a low of 103,680 yuan/mt as investors took a cautious stance waiting for the result of China-US trade talk. It is likely to stay rangebound tonight, when the US nonfarm payroll for April and its unemployment rate data will give more cues.

Tin: Pressure from several moving averages remained for the SHFE 1809 contract, which closed 630 yuan/mt higher from the previous day. It is seen trading rangebound in the short term with resistance at 148,500 yuan/mt and support at 146,800 yuan/mt.

Lead: The SHFE lead contract was dragged down by weaker SHFE zinc today, trading around the day moving average. We see the support level at 18,500 yuan/mt being tested tonight.

For editorial queries, please contact Daisy Tseng at daisy@smm.cn
For more information on how to access our research reports, please email service.en@smm.cn

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.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

22 hours ago

"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"

Premier Li Qiang presided over an executive meeting of the State Council to study policy measures for promoting effective investment. The meeting noted that promoting effective investment plays an important role in stabilizing economic growth and strengthening momentum for development. It is necessary to innovate and improve policy measures, and intensify efforts to enhance the efficiency of utilizing funds such as central budget investments, ultra-long-term special treasury bonds, local government special bonds, and new-type policy-based financial instruments. In conjunction with formulating and implementing the 15th Five-Year Plan

22 hours ago

"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the plenary sessions of the Party’s 20th Central Committee, fully and faithfully apply the new development philosophy, strengthen top-level design, build computing power interconnection nodes oriented toward national hub periods, major strategic regions, and key industries, establish a system of computing power interconnection nodes, improve the efficiency and service level of public computing power resources, and promote high-quality development of computing power.

22 hours ago

Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions

After intensive indirect consultations, the new round of nuclear talks between Iran and the US in Muscat, the capital of Oman, has achieved phased progress. It is reported that during this round of talks, the Iranian and US delegations did not meet directly. Instead, Omani Foreign Minister Badr acted as an intermediary, conveying a series of core proposals, strategic concerns, and policy positions to the other side. The atmosphere at the talks was tense yet efficient. According to preliminary on-site assessments, although both sides continue to negotiate over specific terms, they have reached a consensus on the key objective of "continuing dialogue."

22 hours ago