Home / Metal News / SMM Evening Comments (Jun 8)

SMM Evening Comments (Jun 8)

iconJun 8, 2018 18:50
Source:SMM
SMM Evening Comments

SHANGHAI, Jun 8 (SMM) – Nonferrous metals dipped across the board on Friday June 8 with SHFE nickel leading the loss and closing nearly 2.4% lower. Tin dropped 1.2%, lead fell 0.72%, and copper, zinc, and aluminium inched down. 

The ferrous complex saw mixed trading. Coke rose 0.73%, coking coal gained 0.28%, while iron ore slumped nearly 1.2%. Rebar and hot-rolled coil dipped. 

Copper: The SHFE 1808 contract weakened and diverged from the daily moving average today as investors added their shorts. It dipped to a low of 53,700 yuan/mt, and closed at 53,780 yuan/mt with open interests surging 13,000 lots to 220,000 lots. It is expected to test resistance at 54,000 yuan/mt tonight. Investors will take guidance from prices of LME copper tonight. 

Aluminium: The SHFE 1808 contract touched a low of 14,765 yuan/mt as investors cut their longs on uncertainty over China’s regulation on power plants. The contract closed at 14,835 yuan/mt with open interest down 14,384 lots to 202,336 lots. It is expected to hover at current levels with pressure at 15,000 yuan/mt in the short run. 

Zinc: The SHFE 1808 contract registered a second consecutive day of decline to close at 24,260 yuan/mt, after surging to a high of 24,305 yuan/mt. However, with strong support below, the contract is likely to rebound tonight with buoyance from its LME counterparts. The contract will test pressure at the Bollinger upper bands tonight. 

Nickel: Amid bearish sentiment and as longs declined, the SHFE 1809 contract tumbled 2,990 yuan/mt from Tuesday to close at 114,900 yuan/mt. As the KDJ indicators expanded downwards and the longer-term moving average of the MACD shortened, the contract is expected to trade weakly tonight. 

Lead: The SHFE 1807 contract initially fell and broke the five-day moving average to a low of 20,310 yuan/mt during the day as some longs cashed in and left. It then stabilised and hovered around the 20,375 yuan/mt level. The contract saw its open interest sharply down for three consecutive days, suggesting a large outflow of speculative funds. We see the contract retaining its upward trend and expect it to consolidate around the five-day moving average tonight.

Tin: The SHFE 1809 contract extended its weak performance today and slumped to a low of 152,000 yuan/mt as longs declined in an oversupplied market. The contract is likely to weaken further in the short term with support at 150,000 yuan/mt.


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

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

For queries, please contact Lemon Zhao at lemonzhao@smm.cn

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

Related news