SHANGHAI, Apr 3 (SMM) –
Copper: Three-month LME copper fell to an intraday low of $6,410/mt on Tuesday before it finished the trading day 0.44% lower at $6,432.5/mt. Weak performance in LME copper weighed the most traded SHFE May contract to a low of 49,000 yuan/mt overnight, before SHFE copper pared some losses to end at 49,130 yuan/mt. Gains in the US dollar pressured copper prices. LME copper is expected to trade at $6,410-6,460/mt today with SHFE copper at 49,000-49,400 yuan/mt. Spot premiums are seen up to 140 yuan/mt.
Aluminium: Three-month LME aluminium came off from earlier highs at $1,900/mt to close the trading day 0.45% lower at $1,883.5/mt. It has lost much of gains made since last week. Overnight gains in the greenback are likely to keep zinc prices under pressure today. LME aluminium is expected to trade at $1,880-1,900/mt. The most active SHFE May contract edged down to close at 13,760 yuan/mt overnight, but remained above all moving averages. It is expected to hover between 13,700-13,800 yuan/mt today with spot premiums of up to 20 yuan/mt.
Zinc: Three-month LME zinc on Tuesday fell below the five-day moving average to close the trading day 0.86% lower at $2,871/mt, just above the 10-day moving average. LME zinc is expected to trade rangebound around the 10-day moving average, with a trading range of $2,845-2,895/mt as risk aversion grows amid concerns about a global economic slowdown. The most active SHFE May contract extended daytime declines to the region around 22,640 yuan/mt in early trade overnight. It later hovered around the daily moving average to end overnight session at 22,640 yuan/mt. The contract has lost support from the five-day moving average, but is likely to stage further downward correction. It is expected to trade between the five- and 10-day moving averages today, with most transactions occurring at 22,400-22,900 yuan/mt.
Nickel: Three-month LME nickel tumbled past the five-, 10-, 20- and 40-day moving averages to a low of $12,950/mt before it recovered from those losses to close the trading day 0.38% higher at $13,165/mt on Tuesday. As longs aggressively added their positions, the most active SHFE May contract rebounded from earlier lows to a high of 102,850 yuan/mt overnight before it closed at 102,440 yuan/mt. LME nickel is expected to inch up to the range of $13,050-13,250/mt today. SHFE nickel is expected to trade at 101,000-103,000 yuan/mt with spot prices at 102,000-104,000 yuan/mt.
Lead: Dragged by a weak SHFE lead, three-month LME lead dropped to a 2-1/2-month low of $1,983.5/mt on Tuesday before it pared some losses to end at $1,989/mt, down 1.09% on the day. LME lead has lost support from all moving averages and might find some relief as the US dollar approaches previous highs. Following the drop in LME lead, the most liquid SHFE May contract opened lower overnight and hovered around 16,775 yuan/mt during overnight trading hours, ending at 16,765 yuan/mt. Market focus has turned to fundamentals after positive macroeconomic developments were priced in.
Tin: Three-month LME tin opened higher, but weakened on Tuesday, ending 0.89% lower at $21,230/mt. Continued strength in the US dollar and the buildup of short positions accounted for the declines in LME tin. Support is seen at $21,000/mt. The most active SHFE May contract inched down to end at 148,100 yuan/mt overnight, dragged by losses in its LME counterpart. Resistance is seen at 148,700 yuan/mt while support is at 147,500 yuan/mt.
