SMM Morning Comments (Apr 15)-Shanghai Metals Market

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SMM Morning Comments (Apr 15)

Price Review & Forecast 09:34:22AM Apr 15, 2019 Source:SMM

SHANGHAI, Apr 15 (SMM) –

Copper: Upbeat Chinese economic data boosted three-month LME copper to a high of $6,531.5/mt on Friday before it pared some gains to end 1.6% higher at $6,505.5/mt. After a higher open, the most active SHFE June contract weakened to end at 49,570 yuan/mt on Friday night. Greater-than-expected financing data from China improved market sentiment. This, together with weaker US dollar and strong oil prices, lifted copper prices. Copper prices are likely to trade rangebound today. LME copper is expected to trade at $6,470-6,510/mt with SHFE copper at 49,400-49,700 yuan/mt. Spot premiums are seen at 20-140 yuan/mt.

Aluminium: As the US dollar weakened, three-month LME aluminium rallied from a month-low of $1,846/mt on Friday, and closed 0.3% higher at $1,864/mt. The trading level of LME aluminium remained below all moving averages. Weak fundamentals are likely to cap upside room in LME aluminium, which is expected to trade at $1,850-1,880/mt today. The most traded SHFE May contract traded in a tight range and closed 0.1% higher at 13,850 yuan/mt on Friday night. It is expected to trade at 13,800-13,900 yuan/mt today. Spot premiums are seen up to 20 yuan/mt on the last trading day of the April contract.

Zinc: A decline in LME zinc inventories and stronger-than-expected financing data from China bolstered three-month LME zinc above all moving averages to a high of $2,930/mt on Friday before it ended 1.9% higher at $2,925.5/mt. While US-Europe trade tensions might dent risk appetite, strong fundamentals will support LME zinc to trade at $2,900-2,950/mt today. As some longs entered the market, the most active SHFE June contract rebounded from earlier lows to finish close to 0.6% higher at 22,480 yuan/mt on Friday night. Position-covering accounted for the majority of trading activity in Shanghai. SHFE zinc has yet to shrug off resistance from short-term moving averages, given consumption recovery and supply growth. LME zinc further outperformed its SHFE counterpart. SHFE zinc is expected to trade at 22,250-22,700 yuan/mt and test the 10-day moving average today.

Nickel: Upbeat Chinese financing data buoyed the nonferrous complex, helping three-month LME nickel recover from earlier losses to close 0.4% higher at $13,020/mt on Friday. The most traded SHFE June contract opened higher, but it erased those gains to end 0.1% lower at 101,060 yuan/mt on Friday night. LME nickel is expected to hover between $12,850-13,100/mt today with SHFE nickel at 100,000-102,000 yuan/mt. Spot prices are seen at 100,500-103,000 yuan/mt.

Lead: Three-month LME lead rebounded from an earlier low of $1,907/mt to close 0.4% higher at $1,932/mt on Friday. Signs of stabilisation and lower LME lead inventories might boost LME lead. Following earlier declines in LME lead, the most active SHFE May contract tumbled to 16,225 yuan/mt, the lowest since May 2017, before it recovered some losses to end 0.2% lower at 16,325 yuan/mt on Friday night.

Tin: Three-month LME tin remained rangebound at lows and closed 0.3% higher at $20,705/mt on Friday. LME tin continued to stand below all moving averages. Support is seen at $20,500/mt. With resistance from the five-day moving average, the most traded SHFE May contract hovered around opening price on Friday night and ended 0.4% higher at 147,320 yuan/mt. Support is seen at 146,000 yuan/mt with resistance at 147,500 yuan/mt.

Key Words:  Morning comments  Copper  Aluminium  Zinc  Lead  Nickel  Tin 

SMM Morning Comments (Apr 15)

Price Review & Forecast 09:34:22AM Apr 15, 2019 Source:SMM

SHANGHAI, Apr 15 (SMM) –

Copper: Upbeat Chinese economic data boosted three-month LME copper to a high of $6,531.5/mt on Friday before it pared some gains to end 1.6% higher at $6,505.5/mt. After a higher open, the most active SHFE June contract weakened to end at 49,570 yuan/mt on Friday night. Greater-than-expected financing data from China improved market sentiment. This, together with weaker US dollar and strong oil prices, lifted copper prices. Copper prices are likely to trade rangebound today. LME copper is expected to trade at $6,470-6,510/mt with SHFE copper at 49,400-49,700 yuan/mt. Spot premiums are seen at 20-140 yuan/mt.

Aluminium: As the US dollar weakened, three-month LME aluminium rallied from a month-low of $1,846/mt on Friday, and closed 0.3% higher at $1,864/mt. The trading level of LME aluminium remained below all moving averages. Weak fundamentals are likely to cap upside room in LME aluminium, which is expected to trade at $1,850-1,880/mt today. The most traded SHFE May contract traded in a tight range and closed 0.1% higher at 13,850 yuan/mt on Friday night. It is expected to trade at 13,800-13,900 yuan/mt today. Spot premiums are seen up to 20 yuan/mt on the last trading day of the April contract.

Zinc: A decline in LME zinc inventories and stronger-than-expected financing data from China bolstered three-month LME zinc above all moving averages to a high of $2,930/mt on Friday before it ended 1.9% higher at $2,925.5/mt. While US-Europe trade tensions might dent risk appetite, strong fundamentals will support LME zinc to trade at $2,900-2,950/mt today. As some longs entered the market, the most active SHFE June contract rebounded from earlier lows to finish close to 0.6% higher at 22,480 yuan/mt on Friday night. Position-covering accounted for the majority of trading activity in Shanghai. SHFE zinc has yet to shrug off resistance from short-term moving averages, given consumption recovery and supply growth. LME zinc further outperformed its SHFE counterpart. SHFE zinc is expected to trade at 22,250-22,700 yuan/mt and test the 10-day moving average today.

Nickel: Upbeat Chinese financing data buoyed the nonferrous complex, helping three-month LME nickel recover from earlier losses to close 0.4% higher at $13,020/mt on Friday. The most traded SHFE June contract opened higher, but it erased those gains to end 0.1% lower at 101,060 yuan/mt on Friday night. LME nickel is expected to hover between $12,850-13,100/mt today with SHFE nickel at 100,000-102,000 yuan/mt. Spot prices are seen at 100,500-103,000 yuan/mt.

Lead: Three-month LME lead rebounded from an earlier low of $1,907/mt to close 0.4% higher at $1,932/mt on Friday. Signs of stabilisation and lower LME lead inventories might boost LME lead. Following earlier declines in LME lead, the most active SHFE May contract tumbled to 16,225 yuan/mt, the lowest since May 2017, before it recovered some losses to end 0.2% lower at 16,325 yuan/mt on Friday night.

Tin: Three-month LME tin remained rangebound at lows and closed 0.3% higher at $20,705/mt on Friday. LME tin continued to stand below all moving averages. Support is seen at $20,500/mt. With resistance from the five-day moving average, the most traded SHFE May contract hovered around opening price on Friday night and ended 0.4% higher at 147,320 yuan/mt. Support is seen at 146,000 yuan/mt with resistance at 147,500 yuan/mt.

Key Words:  Morning comments  Copper  Aluminium  Zinc  Lead  Nickel  Tin