SHANGHAI, May 28 (SMM) – SHFE nonferrous metals ended mostly lower on Tuesday May 28 as lead lost close to 1.5%, aluminium fell 0.3%, nickel dipped 0.2%, copper edged down, while tin climbed 0.9%, and zinc jumped 1.7%.
The ferrous complex, except for iron ore, also closed lower with the biggest loss of 3.1% in coke. Coking coal slid 1.5%, hot-rolled coil fell 1.1%, and rebar went down 0.8%.
Copper: The most-active SHFE July contract surrendered gains from the morning as departing longs lowered it from a high of 47,310 yuan/mt, and drove it 0.04% lower on the day at 47,130 yuan/mt. Open interests lost 3,840 lots to 228,000 lots, while open interests across the August and September contacts accumulated 4,650 lots. As the KDJ indicators expanded downwards, the July contract may test support from 47,000 yuan/mt tonight.
Aluminium: The most-traded SHFE July contract retreated after it jumped to a high of 14,310 yuan/mt as shorts entered. It slipped to an intraday low of 14,230 yuan/mt and finished the trading day 0.32% lower at 14,240 yuan/mt, losing gains accumulated on Monday. Tonight, the contract is expected to hover between 14,200-14,400 yuan/mt.
Zinc: The most-traded SHFE July contract extended its rangebound trend from overnight and rose to a high of 20,775 yuan/mt around noon as shorts exited and moved to back-month contracts. It finished the trading day 1.72% higher at 20,665 yuan/mt, with open interests down 39,670 lots to 306,000 lots. Poor spot trades are likely to depress confidence in longs, and keep the contract around the 10-day moving average tonight.
Nickel: A stronger US dollar weighed the most-liquid SHFE July contract below the daily moving average, but the 100,200 yuan/mt level provided support. The contract lost 0.19% on the day and closed at 100,340 yuan/mt. As the MACD red line lengthened, the contract may struggle to stand above the 60-day moving average tonight.
Lead: A buildup of shorts dragged the most-active SHFE July contract below the daily moving average, to an intraday low of 15,935 yuan/mt, before it ended 1.45% lower on the day at 15,955 yuan/mt. Pressure from the five- and 10-day moving averages will cap any rebound tonight, but support remains strong at 15,800 yuan/mt.
Tin: As shorts continued to cover their positions, the most-liquid SHFE September contract climbed to an intraday high of 146,170 yuan/mt and settled 0.86% higher on the day at 146,150 yuan/mt. This marked the second consecutive trading day of increase. With pressure from the 20-day moving average, the contract may trade with support from 143,500 yuan/mt tonight.