SMM Evening Comments (May 23)

Published: May 23, 2018 17:58
SMM Evening Comments

SHANGHAI, May 23 (SMM) – Most nonferrous metals traded weakly, rangebound on Wednesday May 23. SHFE tin recovered slightly from its poor performance last week and gained 0.8%. SHFE copper saw a smaller increase, and closer higher than yesterday. SHFE zinc dropped close to 1%, aluminium slid 0.8%, nickel lost 0.6% and lead dipped.

The ferrous complex fell across the board with coking coal down 4.6% and coke down 4.3%. Rebar and hot-rolled coil dropped over 1%. Iron ore lost 0.7% though it rebounded slightly.

Copper: The SHFE 1807 contract tumbled to a session-low of 51,620 yuan/mt during the day after it fell to a low of 51,760 yuan/mt. It recovered some losses as shorts exited the market before closure. Technically, SHFE copper stood above the 60-day moving average with strong support. We expect it to continue its rangebound pattern tonight with slightly higher trading levels.

Aluminium: As shorts closed their positions, the SHFE 1807 contract rebounded to a high of 14,640 yuan/mt from a low of 14,580 yuan/mt in the morning. As both shorts and longs closed out their positions, the trading level of the contract dipped and touched a low of 14,590 yuan/mt in the afternoon. Though open interest shrank 11,698 lots during the day, the contract remained rangebound, without clear direction. Investors were keen to exit the market. Market participants should monitor the 14,580 yuan/mt level.

Zinc: Shorts and longs cut their positions during the day. As several longs entered the market at relatively low prices, trading levels of the SHFE 1807 contract nudged up and hovered around the 23,620 yuan/mt level with a range of about 50 yuan/mt. As LME zinc fell to test the support at the $3,000/mt level during the European trading hours, we expect SHFE zinc to break support at the 23,500 yuan/mt level tonight.

Nickel: The SHFE 1807 contract regained some losses after it dipped to a low of 107,500 yuan/mt with pressure from shorts. It closed at 108,440 yuan/mt, down 650 yuan/mt from Tuesday. As KDJ indicators barely diverged from one another and as the longer-term moving average of the MACD shortened, the contract is expected to trade rangebound with downward room tonight. Investors will take cues from the May data of the Markit manufacturing purchasing managers’ indices (PMI) for the US and the eurozone, the US' weekly mortgage applications, new home sales in April, and the weekly crude oil inventory by the Energy Information Administration (EIA).

Tin: As investors added their longs, the SHFE 1809 contract climbed to a high of 147,290 yuan/mt. It rose above all moving averages today and is likely to gain further tonight. Pressure is expected at 148,000 yuan/mt from above.

Lead: The SHFE 1807 contract dropped to a low of 19,520 yuan/mt in the morning as some longs took profits and closed out their positions. The contract rebounded to a high of 19,895 yuan/mt in the afternoon as some longs entered the market. Although the SHFE lead contract with the most open interest declined today after 13 consecutive days of gains, the upward trend for the contract is likely to remain unchanged. We expect it to dip in the short term. Market participants should monitor the positions of shorts and longs.

 


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

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
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
Feb 6, 2026 23:56
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
Read More
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
"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
Feb 6, 2026 23:56
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
Feb 6, 2026 23:54
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
Read More
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
"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.
Feb 6, 2026 23:54
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
Feb 6, 2026 23:47
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
Read More
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
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."
Feb 6, 2026 23:47