SHANGHAI, Sep 19 (SMM) –

Copper: Copper prices extended their losses overnight on concerns about global economic growth and the robust greenback after the Fed gave an uncertain outlook on future easing. The oil price pullback also weighed on copper. Three-month LME copper dipped 0.18% on the day to close at $5,805/mt, while the most active SHFE 1911 contract shed 0.38% overnight to end at 47,070 yuan/mt. SHFE copper could not find strong support from domestic fundamentals, either, absent of a substantial consumption recovery. Copper prices are unlikely to significantly rebound today. LME copper is expected to trade between $5,760-5,830/mt, with SHFE copper at 46,800-47,200 yuan/mt. Spot premiums are higher at 190-230 yuan/mt, as lower prices of futures and pre-holiday stockpiling will encourage downstream consumers to buy.

Aluminium: Three-month LME aluminium rallied to an intraday high of $1,780.5/mt, before it eased to finish the trading day a tad lower at $1,792/mt. LME aluminium is expected to hover between $1,770-1,800/mt today, with upside potential hampered by a firm US dollar. The unwinding of long positions depressed the most traded SHFE 1911 contract to a five-week low of 14,095 yuan/mt overnight, before the contract clawed back some losses to end 0.46% weaker at 14,185 yuan/mt. SHFE aluminium is expected to move between 14,050-14,200 yuan/mt today. Spot premiums are seen at 20-40 yuan/mt over the 1910 contract.

Zinc: A stronger US dollar knocked three-month LME zinc to the $2,320/mt level, the lowest in a week, on Wednesday, before the contract finished the trading day 1% weaker at $2,321/mt. Deliveries to LME-approved warehouses lifted LME zinc inventories for two consecutive days, but the stocks are unlikely to further grow. LME zinc is expected to waver between $2,310-2,360/mt today, after three days of decline. Tracking losses in LME zinc, the most active SHFE 1911 contract opened lower overnight and fluctuated to close 0.57% weaker at 19,025 yuan/mt. This suggested support at 19,000 yuan/mt and the 60-day moving average. The discount for the 1910 contract against the 1911 contract narrowed, indicating a bearish market outlook. The SHFE 1911 contract is expected to trade rangebound between 18,800-19,300 yuan/mt today, with premiums for spot 0# Shuangyan at 120-150 yuan/mt over the 1910 contract.       

Nickel: Three-month LME nickel strengthened 0.91% in seesaw trade to end at $17,200/mt on Wednesday, paring some losses from a previous pullback. Support was at $17,000/mt, while resistance was at the 20-day moving average. A resistance confluence of the five- and 20-day moving averages will come under scrutiny today. The most traded SHFE 1911 contract advanced 0.72% to close at 136,590 yuan/mt overnight. SHFE nickel remains above the 20-day moving average, but faces strong resistance at 137,000 yuan/mt.    

Lead: Three-month LME lead rallied on Wednesday, gaining 1.12% to end at $2,081.5/mt. LME lead is expected to cling to recent highs, with support at the 40-day moving average, but faces pressure from its weak SHFE counterpart. The most active SHFE 1911 contract rose to a session-high of 16,940 yuan/mt early overnight, before it eased to close 0.45% higher at 16,855 yuan/mt. SHFE lead temporarily stabilised after a significant decline on Monday, but it remains weak, with the potential for further losses.

Tin: Three-month LME tin fluctuated to finish the trading day marginally higher at $16,815/mt on Wednesday. Support remains at $16,500/mt. The most traded SHFE 2001 contract eased from earlier, moderate gains to end a tad weaker at 137,080 yuan/mt overnight. Resistance is seen at 139,500 yuan/mt and the 10-day moving average, with support at 135,800 yuan/mt and the 60-day moving average.