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SMM Evening Comments (Jun 19)
Jun 19,2019 17:53CST
price review forecast
SHFE nonferrous metals ended higher across the board

SHANGHAI, Jun 19 (SMM) – SHFE nonferrous metals ended higher across the board on Wednesday June 19 as tin expanded 0.13%, aluminium rose over 0.5%, lead advanced 0.74%, copper jumped more than 1%, nickel increased 1%, and zinc nudged up. 

The ferrous complex also closed higher. Iron ore jumped over 5%, hot-rolled coil climbed 2%, rebar expanded 1.62%, coke and coking coal went up 1%. 

Copper: The most-traded SHFE August contract extended gains from overnight as eased macroeconomic sentiment continued to drove shorts to cover their positions. Rekindled hopes of a US-China trade deal and potential more stimulus by the European Central Bank boosted the market. The contract finished the trading day 1.21% higher at 46,840 yuan/mt, after consolidated around 46,830 yuan/mt, firm above the 20-day moving average. As the MACD red line lengthened and the KDJ indicators expanded upwards, technical support is expected to keep the contract testing 47,000 yuan/mt tonight. 

Aluminium: The most-traded SHFE August contract failed to exceed 13,890 yuan/mt as pressure above kept it around the daily moving average after overnight gains. It slid to an intraday low of 13,825 yuan/mt, before ended 0.51% higher on the day at 13,865 yuan/mt, the two consecutive trading day of increase. It tested pressure from the five-day moving average today, with the KDJ indicators expanding upwards and the MACD green line shortening. As the focus of the market will return to fundamentals after supportive news overnight, longs should remain cautious tonight. 

Zinc: The most-traded SHFE August contract almost lost all the gains from last night as it failed to stand firm above 20,000 yuan/mt, ending 0.03% higher on the day at 19,945 yuan/mt. Fundamentals and slow trades in the spot market are likely to keep the contract weak around the 10-day moving average tonight. 

Nickel: The most-liquid SHFE August contract pared overnight gains as it fell below the daily moving average and unsuccessfully tested the 99,500 yuan/mt level, ending 0.98% higher on the day at 99,060 yuan/mt. The 99,000 yuan/mt level provided support. Tonight, we see it hovering around 100,000 yuan/mt.  

Lead: The most-active SHFE July contract recovered after exiting longs drove prices to lows around 16,210 yuan/mt. It climbed 0.74% on the day and closed at 16,270 yuan/mt, with open interests down 2,576 lots to 37,644 lots. With considerable pressure from the 60-day moving average, the contract is likely to test support from the 40-day moving average tonight. 

Tin: The most-liquid SHFE September contract retreated from an overnight buildup as its LME counterpart weakened on growing inventories. Shorts loaded up their positions, and dragged the contract from a high of 144,950 yuan/mt, ending it at 144,050 yuan/mt, up 0.13% on the day. Tonight, it is expected to receive support from 143,500 yuan/mt, with pressure above from the 5- and 20-day moving averages, or the 144,500 yuan/mt level.

Evening comments
Futures movement

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