SMM Morning Comments (Apr 22)

Published: Apr 22, 2019 09:20

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SMM Morning Comments

SHANGHAI, Apr 22 (SMM) –

Copper: The most active SHFE June contract fluctuated to end 0.2% higher at 49,450 yuan/mt on Friday night. Oil prices surged after the announcement of the US' elimination of Iran oil waivers after expiration on May 2. This is likely to bolster copper prices. The five- and 10-day moving averages stucked to each other, which is also likely to offer support. SHFE copper is expected to trade between 49,400-49,700 yuan/mt today. Spot premiums are seen firm at 30-130 yuan/mt as the peak delivery period for long-term contracts will spur trades and prompt sellers to hold offers firm.

Aluminium: A buildup of long positions pushed the most traded SHFE June contract to as high as 14,145 yuan/mt, a peak for 2019, on Friday night before it closed 0.46% higher at 14,130 yuan/mt. SHFE aluminium is expected to trade between 14,050-14,150 yuan/mt today, with spot discounts of up to 40 yuan/mt.

Zinc: As longs added their positions, the most active SHFE June contract climbed 1.11% to close at 21,795 yuan/mt on Friday night. SHFE zinc rose for two consecutive sessions, as growing supply weakened zinc prices, which spurred consumption and deterred shorts from selling. SMM reported on Friday that social inventories of refined zinc across Shanghai, Guangdong and Tianjin decreased by 16,600 mt in the week ended April 19. SHFE zinc is likely to shrug off resistance from the 40-day moving average and trade at 21,600-22,050 yuan/mt today.

Nickel: The most traded SHFE June contract rose 1.41% to end at 100,400 yuan/mt on Friday night. It is expected to trade rangebound between 99,000-101,000 yuan/mt today with spot prices at 99,500-102,500 yuan/mt.

Lead: The most active SHFE June contract rebounded from earlier lows to close 0.33% higher at 16,525 yuan/mt on Friday night. Its five-day moving average turned around to expand upwards, and reflected signs of stabilisation in SHFE lead. Without the impact from its LME counterpart, SHFE lead is expected to extend its gains today, and most transactions are seen at 16,490-16,600 yuan/mt.

Tin: The most liquid SHFE September contract rallied from earlier lows to end 0.31% higher at 148,300 yuan/mt on Friday night. It faces resistance from the five-day moving average. Support is seen at 147,500 yuan/mt while resistance is at 149,500 yuan/mt.

Morning comments Copper Aluminium Zinc Lead Nickel Tin

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.

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