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SMM Evening Comments (Mar 27)
Mar 27,2019 17:44CST
price review forecast
SMM Evening Comments

SHANGHAI, Mar 27 (SMM) – SHFE nonferrous metals, except for tin, closed higher on Wednesday. Nickel saw the biggest gain of 1.4%, zinc climbed close to 1%, copper gained 0.3%, lead and aluminium inched up close to 0.1%.

The ferrous complex traded mixed on the day. Hot-rolled coil gained close to 0.5%, rebar advanced 0.3%, and coking coal nudged up 0.04%, while coke dropped over 1%. Iron ore stayed flat.

Copper: As shorts cut their positions, the most traded SHFE May contract climbed to an intraday high of 48,520 yuan/mt in morning trade before it erased some gains to end the trading day 0.27% higher at 48,390 yuan/mt. This helped the contract stand above the lower Bollinger band and lifted the J line. The contract is expected to try to break through 48,500 yuan/mt tonight.

Aluminium: As shorts took profits, the most active SHFE May contract rebounded from earlier lows of 13,610 yuan/mt to close the trading day slightly higher at 13,650 yuan/mt. Market focus will remain on the value-added tax cuts in the near term. The contract is expected to remain rangebound around the 20-day moving average tonight.

Zinc: The most traded SHFE May contract pared some overnight gains to finish the trading day 0.95% higher at 22,210 yuan/mt. With positive fundamentals and support at several moving averages, the contract is expected to hold onto its ground and move around the upper Bollinger band tonight. Investors flowed to the June contract today, with open interest expanding some 22,000 lots on the day.

Nickel: The most liquid SHFE May contract came off from earlier highs to end the trading day 1.39% higher at 100,930 yuan/mt. Investors continued to flow to forward contracts with the June and July contracts seeing their open interest expand on the day. The May contract is expected to test support at the five-day moving average tonight.

Lead: The most active SHFE May contract continued overnight rangebound pattern during the day and ended at 16,835 yuan/mt, up 0.09% on the day. With limited long position addition, shorts dominated the market of late. This would limit upside room in SHFE lead, while support sustains at 16,800 yuan/mt. The contract is expected to continue to hover around that level tonight.

Tin: The most liquid SHFE May contract traded rangebound around 146,700 yuan/mt, below the daily moving average, for much of the day, and closed marginally lower at 146,710 yuan/mt. Standing below all moving averages, the contract continued hovering at lows. Support is seen at 146,000 yuan/mt.

Evening comments

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