SMM Morning Comments (Sep 18)

Published: Sep 18, 2018 09:30

Save

SMM Morning Comments

SHANGHAI, Sep 18 (SMM) –

Copper: LME copper opened at a low of $5,858/mt today as shorts surged on news that the US is on the cusp of implementing tariffs of 10% on $200 billion worth of Chinese goods. Spot premiums are expected to stay at highs on expectations of rising demand before the upcoming week-long National Day holiday. Premiums are set at 190-250 yuan/mt today.

Aluminium: LME aluminium climbed up during the European trading session, with limited momentum. It closed at $2,033.5/mt after it rose to a high of $2,043/mt. Today, the market will follow closely the development of fresh US tariffs on $200 billion worth of Chinese goods. Cautious investors kept the SHFE 1811 contract within 14,455-14,505 yuan/mt overnight. The contract is expected to trade at 14,440-14,550 yuan/mt today with spot discounts at 60-20 yuan/mt.

Zinc: A shrinking LME zinc inventory benefited prices, which grew $20.5/mt to close at $2,333/mt. We expect LME zinc to test pressure at the five-day moving average above today. Trade concerns will keep it trading weakly around $2,290-2,340/mt. The SHFE 1811 contract tested the 20-day moving average above when it rose to a high of 20,650 yuan/mt. Due to its weak LME counterpart, its trading range today is set at 20,200-20,700 yuan/mt.

Nickel: LME nickel faced resistance at the five- and 10- day moving averages overnight, and settled 1.13% lower, even though pressure from the US dollar eased. The SHFE 1811 contract also fell as spot products increased faster than demand amid opened import window. We expect LME nickel to hover around $12,300/mt today with the contract trading at 101,000-102,500 yuan/mt. Spot prices are set at 102,000-108,500 yuan/mt.

Lead: As the US dollar weakened, LME lead rose above the five-, 10-, and 20-day moving averages and closed at $2,068/mt. However, heavy pressure lingered above at the 40-day moving average and the $2,100/mt level. The SHFE 1810 contract settled 0.88% higher at 18,830 yuan/mt, but downward room remains amid cautious sentiment in the market.

Tin: A lower US dollar buoyed LME tin to a high of $19,020/mt overnight, but continued trade war concerns weighed on the price, which slid $105/mt from last Friday to settle at $18,940/mt. Support below is seen at $18,600/mt. The SHFE 1901 contract also closed lower amid trade dispute threat. It will trade rangebound with support at 142,500 yuan/mt today.

Morning comments Futures movement

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

20 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

20 hours ago

21 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.

21 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."

21 hours ago