SMM Morning Comments (Jun 8)

Published: Jun 8, 2018 09:36

Save

SMM Morning Comments

SHANGHAI, Jun 8 (SMM) –

Copper: Copper prices slowed their upward trends overnight. LME copper came off from highs and hit the highest in four and a half years. The SHFE 1808 contract also lost some previous gains as some longs took profit and left. We remain bullish on copper prices in the short term. LME copper is likely to trade at $7,250-7,300/mt today; the SHFE 1808 contract is likely to trade at 54,000-54,500 yuan/mt. Spot discounts are seen at 60-20 yuan/mt.

Aluminium: LME aluminium fell back to among several moving averages overnight. We expect it to hover between the 20- and 40-day moving averages today and trade at $2,280-2,310/mt. As some longs took profit and closed out their positions, the SHFE 1808 contract touched a low of 14,865 yuan/mt overnight. We expect it to trade at 14,750-15,000 yuan/mt today with spot discounts at 60-20 yuan/mt.

Zinc: LME zinc opened above the 60-day moving average this morning but fell and broke the support at the 60-day moving average. In addition, the five- and 20-day moving averages below significantly diverged from each other. We see LME zinc to retrace with a trading range at $3,140-3,185/mt today. The SHFE 1808 contract failed to break the upper Bollinger band several times overnight. With such strong resistance, we see limited upward momentum for it. It is likely to continue its downward trend today to find support at the five-day moving average and trade at 24,050-24,450 yuan/mt.

Nickel: LME nickel hovered around the $15,420/mt level within a narrow range overnight after it tumbled to a low of $15,360/mt. Along with its falling LME counterpart, the SHFE 1809 contract also plunged to a low of 115,580 yuan/mt overnight. It then hovered around the 115,950 yuan/mt within a narrow range. We expect LME nickel to trade rangebound at high levels today with the SHFE 1809 contract at 115,700-118,500 yuan/mt. Spot prices are seen at 115,200-118,000 yuan/mt.

Lead: LME lead fell from a high of $2,555.5/mt to below the five-day moving average. It closed at $2,496/mt overnight with open interests declining 200 lots to 116,552 lots. However, we still see upward momentum for LME lead today. It is likely to hover around the five-day moving average during the day. The SHFE 1807 contract also slumped from highs last night but received support at the five-day moving average. It is expected to test support at that level today.

Tin: LME tin soared to a high of $21,300/mt and closed at $21,220/mt last night as the US dollar weakened. It is expected to retain its robust trend in the short term with pressure above at $21,700/mt. The SHFE 1809 contract dipped and mostly traded below the daily moving average. It is likely to test support at the short-term moving average today.

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

Morning comments copper aluminium zinc lead nickel 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

17 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

17 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.

17 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."

17 hours ago