SHANGHAI, May 13 (SMM) – 

Copper: The Bollinger lower band is likely to continue to support LME copper and the most-traded SHFE July contract today as hopes around further trade talks between China and the US eased market sentiment. Last Friday night, LME copper settled 0.08% higher at $6,112.5/mt, and the SHFE 1907 contract also grew 0.25% to finish at 47,880 yuan/mt. We see the contract trading at 47,650-58,000 yuan/mt, with LME copper at $6,080-6,130/mt today. The arrival of imported copper is likely to keep spot offers flat to a premium of 100 yuan/mt. 

Aluminium: Lower inventories across LME warehouses and the weaker US dollar buoyed LME aluminium to a high of $1,821/mt, and settled it at $1,810.5/mt. The SHFE 1906 contract also rebounded as longs entered after market sentiment eased on Friday. In the short run, higher US tariffs are likely to have minimal impact on Chinese aluminium exports. We see the contract trading at 14,150-14,250 yuan/mt with its LME counterpart at $1,790-1,820/mt today. Spot offers are likely to stand flat to a premium of 20 yuan/mt today. 

Zinc: With support from $2,600/mt, LME zinc stemmed its decline after the US dollar weakened. It closed 0.11% higher on last Friday night at $2,641/mt. Expanding LME zinc inventories are expected to keep LME zinc at the Bollinger lower band, trading at $2,600-2,650/mt today. The most-active SHFE July contract received a boost from longs after it failed to stand firm at 20,880 yuan/mt and dropped to a low of 20,750 yuan/mt. It closed at 20,870 yuan/mt with open interests up 10,600 lots to 305,000 lots. With slower declines in the KDJ indicators, the contract is seen trading at 20,650-21,150 yuan/mt today. 

Nickel: LME nickel traded within a broad range and shrugged off pressure from the $12,000/mt level. LME nickel stocks shrank 828 mt to stand at 169,578 mt. The SHFE 1907 contract moved with LME nickel, and finished 1% higher at 96,740 yuan/mt. It is expected to trade at 95,500-97,500 yuan/mt with LME nickel at $11,800-12,000/mt today. Spot prices are set at 96,000-100,000 yuan/mt. 

Lead: LME lead extended its decline and fell to the lowest in three years, as shorts accumulated after the US upped the ante on the trade war on Friday. Support was only seen at the $1,800/mt level. The SHFE 1906 contract also slid to a two-year low and ended 0.93% lower on the day at 16,025 yuan/mt. It will test support at 16,000 yuan/m today. 

Tin: LME tin held stable at lows on last Friday night, with a high of $19,615/mt, ending 0.67% higher at $19,450/mt. Support will remain at $19,000/mt, with resistance from $19,600/mt today. With pressure from the five-day moving average, the most-liquid SHFE September contract stopped its increase at 146,560 yuan/mt and closed at 146,110 yuan/mt. It will receive support from 145,000 yuan/mt today.