SHANGHAI, Jun 5 (SMM) – SHFE nonferrous metals ended mixed on Wednesday June 5 as lead advanced 0.6%, copper rose 0.43%, aluminium and zinc nudged up, while nickel lost 0.44%, and tin edged down. 

The ferrous complex closed slightly higher as rebar expanded 0.7%, iron ore and hot-rolled coil increased 0.56%, and coke and coking coal inched up. 

Copper: A lower US dollar amid growing expectation of interest rate cuts continued to support copper prices. The SHFE July contract hovered between 46,490-46,560 yuan/mt after it climbed to an intraday high of 46,620 yuan/mt to test pressure from the 10-day moving average. It finished the trading day 0.43% higher at 46,490 yuan/mt, driven by exiting shorts. Open interests lost 8,086 lots to 211,000 lots. Bullish signs from the KDJ indicators are likely to see the contract testing support from 46,600 yuan/mt tonight. 

Aluminium: A buildup of longs pulled the most-traded SHFE July contract after it consolidated around the 14,075 yuan/mt level in the morning. However, it stopped at 14,105 yuan/mt, and closed the trading day 0.07% higher at 14,085 yuan/mt, still below the 40-day moving average. Strong support was seen at 14,000 yuan/mt. Steady fundamentals will keep the contract rangebound tonight. 

Zinc: The most-active SHFE zinc contract moved to the August contract today, which traded mostly stable before accumulated shorts dragged it below the daily moving average, to an intraday low of 19,845 yuan/mt near closing. It ended 0.35% lower on the day at 19,875 yuan/mt, while the July contract expanded 0.07% and settled at 20,275 yuan/mt. The KDJ indicators expanded downwards, indicating limited upward momentum in the August contract. Stockpiling of spot products ahead of the Dragon Boat Festival holiday will narrow any downside room in prices tonight. 

Nickel: The most-active SHFE July contract unsuccessfully tested pressure from 96,400 yuan/mt several times today, and closed 0.44% lower on the day at 96,350 yuan/mt. Open interests expanded 4,100 lots to 182,000 lots, and that in the August contract also grew 18,900 lots to 189,000 lots. As the MACD indicator turned green, the July contract may struggle to find support from the 96,000 yuan/mt tonight. 

Lead: The most-liquid SHFE July contract regained losses from overnight as it jumped to highs around 16,100 yuan.mt, and closed the trading day 0.6% higher at 16,030 yuan/mt. However, upward momentum is likely to decrease as short covering lifted prices today. As the five- and 10- day moving averages moved flat, the contact is likely to extend a rangebound trend tonight. 

Tin: The most-liquid SHFE September contract hovered at lows around the five-day moving average after it dipped to an intraday low of 142,900 yuan/mt right after opening. It ended the trading day 0.09% lower at 143,300 yuan/mt. We see it trading rangebound with support from 142,000 yuan/mt tonight.