SMM Evening Comments (Jun 12)

Published: Jun 12, 2019 18:15 (GMT+8)

Save

SHFE nonferrous metals eased for the most part on Jun 12

SHANGHAI, Jun 12 (SMM) – SHFE nonferrous metals eased for the most part on Wednesday June 12 as lead lost over 1%, copper slid 0.39%, zinc dipped 0.25%, aluminium fell 0.14%, while nickel jumped 0.95%, and tin grew 0.19%.

The ferrous complex also ended mostly lower. Coke declined 2.31%, coking coal dropped 1.44%, rebar went down 0.19%, hot-rolled coil edged down, while iron ore continued to advance 2.55%.

Copper: The most-active SHFE August contract extended its decline from overnight as shorts loaded up their positions at an intraday high of 46,710 yuan/mt in early trades. It stemmed its decline at 46,450 yuan/mt as the prospect of US interest rate cuts depressed the greenback. It ended the trading day 0.39% lower at 46,480 yuan/mt, with open interests up 9,450 lots to 232,000 lots. Tonight, pressure above from the 10-day moving average and the Bollinger middle band are likely to keep the contract struggling at 46,500 yuan/mt.

Aluminium: The most-traded SHFE August contract lost more than half the gains from the previous day as expanding shorts weighed it to a low of 13,915 yuan/mt, before it ended 0.14% lower on the day at 13,930 yuan/mt. Market focus returned to fundamentals, which remained weak with the upcoming slow season. Tonight, the contract is expected to test support below.

Zinc: Shorts continued to add their positions and this lowered the most-active SHFE August contract by 0.25% on the day at 20,245 yuan/mt. Open interests accumulated 11,884 lots to 256,000 lots. The backwardation structure intensified as the price spread between the June and July contracts expanded to 660 yuan/mt, from 570 yuan/mt on Tuesday. Fundamentals are likely to provide limited support and keep the contract testing the five-day moving average tonight.

Nickel: The most-traded SHFE July contract failed to shrug off pressure from the 98,000 yuan/mt level as it hovered between 97,800-98,000 yuan/mt in the morning. It lost support from 97,800 yuan/mt in the afternoon, ending at 97,390 yuan/mt, still up 0.95% on the day. Currently above the Bollinger middle band, the contract is expected to test support from the 10-day moving average tonight.

Lead: The most-traded SHFE August contract fell below support from the Bollinger middle band, as discounts of secondary refined lead grew. It finished the trading day 1.14% lower at 16,045 yuan/mt, with open interests down 282 lots to 46,190 lots as long exited. Tonight, it is expected to test support from the 16,000 yuan/mt level.

Tin: The most-liquid SHFE September contract regained losses from overnight as departing shorts lifted prices from a low of 144,750 yuan/mt. It closed 0.19% higher on the day at 145,320 yuan/mt, with support from the 20-day moving average. We see it trading rangebound with pressure from 146,000 yuan/mt tonight.

Evening comments Futures movement

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

12 hours ago

Ghana draft bill proposes state special share and shorter mining leases

[SMM Gold Flash] A draft mining bill reviewed by Reuters on 30 September would let Ghana’s mines minister require companies to issue the state a free special share with consent rights over major transactions. It would retain the existing 10% free-carried state interest and limit mining leases to 15 years or the projected mine life, whichever is shorter. The draft would also allow future rules requiring local processing and restricting exports of unprocessed concentrates. None of these proposals has been enacted; Reuters did not establish when the draft was prepared. For Ghana’s gold miners, the proposed rights and shorter leases could affect financing, valuations and renewal decisions. Under the draft, existing rights holders seeking renewal would receive priority consideration for equivalent licences. Mining companies expect further consultation before parliamentary debate, Reuters reported. The final wording and timing remain uncertain.

12 hours ago

PGMs: Independent tests advance platinum and palladium battery technology

[SMM PGM Flash] Platinum Group Metals said on 1 October that independent testing by the Battery Innovation Center had validated its Lion Battery subsidiary’s platinum- and palladium-based electrodes in prototype lithium-sulphur cells. Compared with cells without the catalysts, the prototypes showed better capacity and rate capability, with palladium-rich formulations performing best overall. Platinum Group and Valterra Platinum, which own Lion 52% and 48% respectively, have approved funding for the next phase. The result offers a possible new use for PGMs beyond vehicle exhaust catalysts, but remains a prototype milestone. Lion plans to make and test pouch cells, refine the catalysts and assess applications including drones. Commercial performance and demand for significant PGM volumes have yet to be established. The work is relevant to Southern African suppliers: Valterra produces PGMs in South Africa and Zimbabwe, while Platinum Group is developing South Africa’s Waterberg project.

12 hours ago

Oct 01, 2026 16:45 (GMT+8)

Sibanye reaches East Boulder wage agreement; separate US strike continues

[SMM PGM Flash] Sibanye-Stillwater announced on 30 September that workers at its East Boulder platinum and palladium mine in Montana had ratified a collective agreement with the United Steelworkers. The deal runs retroactively from 1 August 2026 to 31 July 2029, with a 4.5% wage increase in year one, the greater of 3.5% or CPI in year two and the greater of 3.0% or CPI in year three. Strike action at the separate Stillwater East mine and Columbus metallurgical facility continues, the company said. The East Boulder settlement fixes part of the labour-cost path for Sibanye’s US PGM business and supports its planned shift towards more mechanised mining and team-based incentives. It does not resolve the other strike or demonstrate a recovery in output; the company disclosed no revised production guidance in this release.

Oct 01, 2026 16:45 (GMT+8)