SMM Morning Comments (Nov 8)-Shanghai Metals Market

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SMM Morning Comments (Nov 8)

Price Review & Forecast 09:33:53AM Nov 08, 2019 Source:SMM

SHANGHAI, Nov 8 (SMM) – 

Copper: Prices of copper advanced overnight on the back of improved demand outlook for the metal after China said it had agreed to lift existing trade tariffs with the US in phases. Better-than-expected US employment data pointed to strong labour market conditions, which boosted the prospect for the global economy and also supported copper prices. Three-month LME copper hit a high of $6,011/mt and finished 1.98% higher at $6,001/mt, with the most-traded SHFE December contract ending up 0.61% at 47,460 yuan/mt. Bullish signals from technical indicators may see the contract between 47,400-47,700 yuan/mt and LME copper at $5,970-6,020/mt today. Spot premiums are likely at 70-100 yuan/mt as sellers cut offers to bolster trades. 

Aluminium: Three-month LME aluminium stayed above $1,800/mt overnight with support from trade optimism. The most-liquid SHFE December contract hit a high of 14,115 yuan/mt and pared some gains to close higher on the day at 13,985 yuan/mt. Trading range is expected at 13,900-14,050 yuan/mt with that for LME aluminium at $1,700-1,820/mt today. 

Zinc: Three-month LME zinc regained losses from the previous session as it rallied to a high of $2,515/mt, with support from the Bollinger middle band, and ended 0.71% higher at $2,491/mt. Continued decline in LME zinc inventories and a firm backwardation structure will lend some support to prices. The most-traded SHFE December contract hovered with resistance from the 60-day moving average, but an outperformed LME zinc lifted the contract to end 0.16% higher at 18,700 yuan/mt. Bullish sentiment about a US-China trade deal will keep the contract between 18,500-19,000 yuan/mt, with LME zinc at $2,460-2,510/mt. 

Nickel: Prices of nickel extended their rangebound trends with three-month LME nickel ending down 0.09% at $16,215/mt and the most-liquid SHFE December contract losing 0.98% to close at 130,680 yuan/mt. With support from $16,200/mt, LME nickel is likely to continue to move sideways today, with the SHFE contract testing pressure above from the five-day moving average. 

Lead: Three-month LME lead stemmed its decline as macroeconomic sentiment rallied on trade hopes between the world’s two largest economies. It finished 0.36% higher at $2,112.5/mt, but weak fundamentals may weigh on the near-term prices. The most-active SHFE December contract continued to trend downwards, closing 0.16% lower at 16,100 yuan/mt. Support from 16,000 yuan/mt will be monitored today. 

Tin: Three-month LME tin failed to stay firm after it shrugged off resistance from the 10- and 60- day moving averages, closing slightly higher at $16,575/mt. The most-traded SHFE January 2020 contract consolidated around the daily moving average and also ended higher at 137,020 yuan/mt. It will likely test support from 136,800 yuan/mt with LME tin trading with resistance from $16,600/mt today. 

SMM Morning Comments (Nov 8)

Price Review & Forecast 09:33:53AM Nov 08, 2019 Source:SMM

SHANGHAI, Nov 8 (SMM) – 

Copper: Prices of copper advanced overnight on the back of improved demand outlook for the metal after China said it had agreed to lift existing trade tariffs with the US in phases. Better-than-expected US employment data pointed to strong labour market conditions, which boosted the prospect for the global economy and also supported copper prices. Three-month LME copper hit a high of $6,011/mt and finished 1.98% higher at $6,001/mt, with the most-traded SHFE December contract ending up 0.61% at 47,460 yuan/mt. Bullish signals from technical indicators may see the contract between 47,400-47,700 yuan/mt and LME copper at $5,970-6,020/mt today. Spot premiums are likely at 70-100 yuan/mt as sellers cut offers to bolster trades. 

Aluminium: Three-month LME aluminium stayed above $1,800/mt overnight with support from trade optimism. The most-liquid SHFE December contract hit a high of 14,115 yuan/mt and pared some gains to close higher on the day at 13,985 yuan/mt. Trading range is expected at 13,900-14,050 yuan/mt with that for LME aluminium at $1,700-1,820/mt today. 

Zinc: Three-month LME zinc regained losses from the previous session as it rallied to a high of $2,515/mt, with support from the Bollinger middle band, and ended 0.71% higher at $2,491/mt. Continued decline in LME zinc inventories and a firm backwardation structure will lend some support to prices. The most-traded SHFE December contract hovered with resistance from the 60-day moving average, but an outperformed LME zinc lifted the contract to end 0.16% higher at 18,700 yuan/mt. Bullish sentiment about a US-China trade deal will keep the contract between 18,500-19,000 yuan/mt, with LME zinc at $2,460-2,510/mt. 

Nickel: Prices of nickel extended their rangebound trends with three-month LME nickel ending down 0.09% at $16,215/mt and the most-liquid SHFE December contract losing 0.98% to close at 130,680 yuan/mt. With support from $16,200/mt, LME nickel is likely to continue to move sideways today, with the SHFE contract testing pressure above from the five-day moving average. 

Lead: Three-month LME lead stemmed its decline as macroeconomic sentiment rallied on trade hopes between the world’s two largest economies. It finished 0.36% higher at $2,112.5/mt, but weak fundamentals may weigh on the near-term prices. The most-active SHFE December contract continued to trend downwards, closing 0.16% lower at 16,100 yuan/mt. Support from 16,000 yuan/mt will be monitored today. 

Tin: Three-month LME tin failed to stay firm after it shrugged off resistance from the 10- and 60- day moving averages, closing slightly higher at $16,575/mt. The most-traded SHFE January 2020 contract consolidated around the daily moving average and also ended higher at 137,020 yuan/mt. It will likely test support from 136,800 yuan/mt with LME tin trading with resistance from $16,600/mt today.