SHANGHAI, Sep 20 (SMM) –

Copper: A robust US dollar and concerns about global economic growth continued to weigh on copper prices overnight. Three-month LME copper edged 0.2% lower at $5,793.5/mt, while the most active SHFE 1911 contract dipped 0.08% to 47,090 yuan/mt. Copper prices are unlikely to substantially rally today, amid risk aversion sentiment. Robust gold prices, with CMX gold above $1,500/oz, suggested poor risk appetite among investors after a slew of central bank decisions came in more hawkish than expected and as a resolution to the protracted US-China trade war is still nowhere in sight. LME copper is expected to trade at $5,780-5,830/mt, with SHFE copper at 46,900-47,300 yuan/mt. Spot premiums are seen firmer at 200-280 yuan/mt.

Aluminium: Three-month LME aluminium rebounded to a three-day high of $1,803/mt on Thursday, before it eased to close 0.17% higher at $1,795/mt. It is expected to hover between $1,780-1,830/mt today. Short-covering helped the most traded SHFE 1911 contract recover from earlier losses overnight, gaining 0.21% to close at 14,190 yuan/mt. The SHFE 1911 contract is expected to trade between 14,050-14,300 yuan/mt today, with spot premiums of 20-40 yuan/mt over the 1910 contract.

Zinc: Three-month LME zinc slid to a low of $2,290/mt, the lowest since September 11, on Thursday, before support at the 20-day moving average and the $2,300/mt handle helped it recover some ground to close a tad weaker at $2,319.5/mt. SHFE zinc has fallen for four consecutive trading days, but poor expectations of an inventory increase will be price supportive as the current backwardation is not wide enough to entail large deliveries to the LME-approved warehouses. LME zinc is expected to trade between $2,280-2,330/mt today. The most active SHFE 1911 contract fell to 18,830 yuan/mt, the lowest in nearly two weeks, overnight before it recovered to close marginally higher at 19,025 yuan/mt. SHFE zinc is expected to trade rangebound as the disappointment of the Fed policy decision recedes. The SHFE 1911 contract is likely to move between 18,700-19,200 yuan/mt today, with premiums for spot 0# Shuangyan at 100-130 yuan/mt over the 1910 contract.

Nickel: Three-month LME nickel fluctuated to finish the trading day 0.58% higher at $17,300/mt on Thursday. Whether LME nickel could shrug off a resistance confluence of the five- and 20-day moving average as well as the $17,300/mt handle will come under scrutiny today. The most traded SHFE 1911 contract rallied from a session-low of 134,850 yuan/mt overnight to close 0.45% higher at 136,910 yuan/mt. SHFE nickel now resides around a confluence of the five- and 20-day moving average. Resistance in this area will be closely watched today.

Lead: Three-month LME lead continued its rally on Thursday for a second straight day, gaining 0.6% to end at $2,094/mt. Whether LME lead could convincingly break $2,100/mt will come under scrutiny. The most active SHFE 1911 contract rose to a session-high of 16,935 yuan/mt overnight, before it eased to close 0.3% higher at 16,900 yuan/mt. SHFE lead rebounded after the plunge on Tuesday, but the rally was not steady as shorts dictated the market. Shorts might take action after SHFE lead returns above 17,000 yuan/mt.

Tin: Three-month LME tin slipped to a two-week low of $16,420/mt on Thursday before it clawed back some losses to end 1.55% lower at $16,555/mt. Support is seen at $16,500/mt, with next support at $16,000/mt. The most traded SHFE 2001 contract opened lower overnight, losing 0.52% to end at 136,540 yuan/mt. Support is seen from the 60-day moving average and 135,500 yuan/mt.