SHANGHAI, Apr 24 (SMM) –
Copper: As the US dollar rose, three-month LME copper slid to a low of $6,380/mt, the lowest so far this month, before it closed 0.78% lower at $6,414/mt on Tuesday. The most active SHFE June contract dropped to 48,830 yuan/mt, the lowest of April, overnight, before it pared some losses to end 0.16% lower at 49,070 yuan/mt. SHFE copper lost support from the middle Bollinger band and might extend its losses today. LME copper is expected to trade between $6,400-6,440/mt today with SHFE copper at 48,800-49,200 yuan/mt. Spot prices are seen at a discount of 30 yuan/mt to a premium of 90 yuan/mt.
Aluminium: Recent strong performance in SHFE aluminium helped LME aluminium buck the downtrend across nonferrous metals on Tuesday, with three-month LME aluminium closing 0.43% higher at $1,876/mt, after it climbed to a two-week high of $1,886/mt. LME aluminium is unlikely to extend its gains today, with most transactions likely at $1,850-1,880/mt. The most traded SHFE June contract opened lower overnight, touching a low of 14,120 yuan/mt as some longs covered position. It ended the overnight session 0.39% lower at 14,140 yuan/mt. With a continued robust greenback this morning, SHFE aluminium is expected to trade between 14,100-14,200 yuan/mt today. Spot prices are seen at a discount of 30 yuan/mt to a premium of 10 yuan/mt.
Zinc: As the US dollar surged, three-month LME zinc came off from earlier highs, past the 60-day moving average and the lower Bollinger band, to a six-week low of $2,726.5/mt on Tuesday. It ended the trading day 1.63% lower at $2,749/mt. Anticipation of higher inventories overseas will continue to weigh on LME zinc, while bearish sentiment is likely to ease today. LME zinc is expected to trade along the lower Bollinger band today, with a trading range of $2,720-2,770/mt. With a decline in its LME counterpart, the most active SHFE June zinc contract fell to a five-week low of 21,335 yuan/mt overnight, before it recovered some losses to close 1.02% lower at 21,435 yuan/mt. A dip in consumption, recovering supply and a weak LME zinc prompted Shanghai traders to load up short position in forward contracts. The SHFE 1906 contract is expected to trade between 21,300-21,800 yuan/mt today.
Nickel: Dragged by a stronger dollar, three-month LME nickel fell to a nine-week low of $12,380/mt on Tuesday before it closed the trading day 1.97% lower at $12,410/mt. The greenback also suppressed SHFE nickel overnight, which fell to 97,240 yuan/mt, a low not seen since February 19. The most liquid SHFE June contract finished the overnight session some 1% lower at 97,580 yuan/mt. LME nickel is expected to extend its declines today, with a trading range of 96,500-98,500 yuan/mt. Spot prices are seen at 98,000-100,000 yuan/mt.
Lead: A decline in LME lead inventories pushed three-month LME lead to an intraday high of $1,951.5/mt on Tuesday before a jump in the US dollar forced it to relinquish those gains to close the trading day 0.9% lower at $1,925.5/mt. LME lead is expected to remain ranegbound in the short term, awaiting direction. The most active SHFE June contract fell past the five- and 10-day moving averages to close at 16,405 yuan/mt overnight, losing close to 0.8%. It returned to the previous range after two consecutive sessions of declines, reflecting the dominance of shorts. SHFE lead is likely to seek support in the near term.
Tin: Suppressed by a robust US dollar, three-month LME tin fell to $19,765/mt, its lowest in three months and a half, before it ended 1.95% lower at $19,845/mt on Tuesday. Support is seen at $19,500/mt while resistance is at $20,100/mt. The most traded SHFE September contract slipped to a low of 147,230 yuan/mt before it pared some losses to end 0.2% lower at 147,480 yuan/mt overnight. Support is seen at 147,000 yuan/mt while resistance is at 148,500 yuan/mt.
