SHANGHAI, Apr 23 (SMM) –
Copper: As lower Chinese stocks prompted copper shorts to add positions, the most active SHFE June contract opened lower before it pared some losses to end 0.45% lower at 49,160 yuan/mt overnight. This morning’s lower open in its LME counterpart is likely to further worsen market sentiment in Shanghai, and SHFE copper is unlikely to remain above the 49,000 yuan/mt level. But strong oil prices are likely to put a floor under industrial metals prices. LME copper is expected to trade between $6,400-6,450/mt today with SHFE copper at 48,950-49,500 yuan/mt. Spot premiums are seen up to 100 yuan/mt. Lower prices of futures are likely to spur purchases by downstream consumers.
Aluminium: The most liquid SHFE June contract pared some earlier gains to end 0.28% higher at 14,175 yuan/mt overnight, and buck the downtrend across the nonferrous complex. SHFE aluminium is expected to remain firm today with a trading range of 14,150-14,250 yuan/mt. Spot prices are seen at a discount of 30 yuan/mt to a premium of 10 yuan/mt. Robust SHFE aluminium is likely to bolster its LME counterpart today, which is expected to trade between $1,850-1,880/mt.
Zinc: The most active SHFE June contract fluctuated to close 0.12% lower at 21,650 yuan/mt overnight, on concerns about greater production. SMM data on Monday showed that social inventories of refined zinc across Shanghai, Tianjin and Guangdong extended their declines over the weekend, which improved market sentiment. SHFE zinc is expected to remain at the range between the 40- and 60-day moving averages today, with most transactions at 21,500-21,900 yuan/mt. Anticipation of deliveries to LME warehouses is likely to continue to weigh on LME zinc after it returned from the Easter holiday, which is expected to trade between $2,765-2,815/mt today, with support from the 60-day moving average.
Nickel: A large buildup of short positions dragged the most traded SHFE June contract to a low of 98,260 yuan/mt overnight before it recovered some losses to end 0.69% lower at 98,800 yuan/mt. LME nickel is expected to trade rangebound between $12,500-12,700/mt today, with SHFE nickel at 97,500-99,500 yuan/mt. Spot prices are seen at 98,000-101,500 yuan/mt.
Lead: With overall weakness across nonferrous metals, the most liquid SHFE June contract reversed earlier gains to end marginally lower at 16,515 yuan/mt overnight. SHFE lead is expected to remain rangebound in the short term, with its trading level gradually rising. It is likely to trade at 16,490-16,575 yuan/mt today with spot prices in Shanghai at 16,600-16,650 yuan/mt.
Tin: The most active SHFE September contract traded rangebound around 147,800 yuan/mt, below the daily moving average, overnight, ending lower at 147,900 yuan/mt. Support is seen at 147,500 yuan/mt with resistance at 149,500 yuan/mt.
