SMM Morning Comments (Nov 13)-Shanghai Metals Market

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SMM Morning Comments (Nov 13)

Price Review & Forecast 09:41:01AM Nov 13, 2019 Source:SMM

SHANGHAI, Nov 13 (SMM) – 

Copper: Decreased appetite for risky assets kept copper prices at lows overnight amid mixed signals on a US-China trade deal. Better-than-expected Germany economic sentiment data failed to significantly boost the outlook for global growth. This, coupled with a higher US dollar, also pressured prices of the metal. Three-month LME copper finished 0.44% lower on the day at $5,854/mt, with the most-liquid SHFE contract ending down 0.32% at 47,060 yuan/mt. Bearish signs from the technical indicators may see the contract between 46,900-47,200 yuan/mt, with LME copper at $5,830-5,880/mt today. Spot premiums are likely at highs of 90-120 yuan/mt today. 

Aluminium: Three-month LME aluminium recovered slightly after a sharp drop Monday, climbing to a high of $1,784.5/mt and ending at $1,781/mt. The SHFE December contract consolidated between 13,790-13,820 yuan/mt with the upside room being capped by pressure from the 13,820 yuan/mt level. It is forecasted to trade between 13,750-13,850 yuan/mt with LME aluminium at $1,770-1,790/mt today. 

Zinc: Three-month LME zinc trimmed gains from the previous three sessions after data published that LME zinc inventories reversed its decline with a buildup of 6.29%. LME zinc lost 1.08% to finish at $2,472/mt, with support expected from the Bollinger middle band today. The most-liquid SHFE contract again tested support from the Bollinger lower band and hit a low of 18,550 yuan/mt, before ending lower at 18,585 yuan/mt. Expectations of weakening demand in the fourth quarter may keep the contract struggling above 18,500 yuan/mt. Trading range is expected at 18,500-18,800 yuan/mt with that for LME zinc at $2,450-2,500/mt today. 

Nickel: Three-month LME nickel pared the sharp decline from the prior session as it recovered above $15,600/mt to close 0.45% higher at $15,640/mt. The most-traded SHFE contract also moved higher and ended up 0.64% at 122,800 yuan/mt. It is likely to face resistance from the five-day moving average today with LME nickel trading with support from the Bollinger lower band.  

Lead: Three-month LME lead lost upward momentum as it came off from highs to hit an intraday low of $2,050/mt, ending down 1.36% at $2,061/mt. It is expected to see further downside room. The most-liquid SHFE contract stemmed its eight straight sessions of slide, closing slightly higher at 15,970 yuan/mt. Weak fundamentals, however, will cap the price rally today, with pressure expected at 16,150 yuan/mt. 

Tin: Prices of tin fell amid loaded-up shorts overnight, with three-month LME tin slipping to a low of $16,250/mt before closing $205/mt lower on the day at $16,320/mt, and the most-active SHFE contract losing 760 yuan/mt to end at 135,570 yuan/mt. Support below is expected from $16,000/mt and 135,000 yuan/mt, respectively. 

Price

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1# Silver Ingots(99.99%)
Dec.06
4114.0
-2.0
(-0.05%)
2# Silver Ingots(99.95%)
Dec.06
4099.0
-2.0
(-0.05%)
3# Silver Ingots(99.90%)
Dec.06
4084.0
-2.0
(-0.05%)
Gold(99.99%)
Dec.06
335.7
-0.4
(-0.12%)
Gold(99.95%)
Dec.06
335.3
-0.5
(-0.13%)

SMM Morning Comments (Nov 13)

Price Review & Forecast 09:41:01AM Nov 13, 2019 Source:SMM

SHANGHAI, Nov 13 (SMM) – 

Copper: Decreased appetite for risky assets kept copper prices at lows overnight amid mixed signals on a US-China trade deal. Better-than-expected Germany economic sentiment data failed to significantly boost the outlook for global growth. This, coupled with a higher US dollar, also pressured prices of the metal. Three-month LME copper finished 0.44% lower on the day at $5,854/mt, with the most-liquid SHFE contract ending down 0.32% at 47,060 yuan/mt. Bearish signs from the technical indicators may see the contract between 46,900-47,200 yuan/mt, with LME copper at $5,830-5,880/mt today. Spot premiums are likely at highs of 90-120 yuan/mt today. 

Aluminium: Three-month LME aluminium recovered slightly after a sharp drop Monday, climbing to a high of $1,784.5/mt and ending at $1,781/mt. The SHFE December contract consolidated between 13,790-13,820 yuan/mt with the upside room being capped by pressure from the 13,820 yuan/mt level. It is forecasted to trade between 13,750-13,850 yuan/mt with LME aluminium at $1,770-1,790/mt today. 

Zinc: Three-month LME zinc trimmed gains from the previous three sessions after data published that LME zinc inventories reversed its decline with a buildup of 6.29%. LME zinc lost 1.08% to finish at $2,472/mt, with support expected from the Bollinger middle band today. The most-liquid SHFE contract again tested support from the Bollinger lower band and hit a low of 18,550 yuan/mt, before ending lower at 18,585 yuan/mt. Expectations of weakening demand in the fourth quarter may keep the contract struggling above 18,500 yuan/mt. Trading range is expected at 18,500-18,800 yuan/mt with that for LME zinc at $2,450-2,500/mt today. 

Nickel: Three-month LME nickel pared the sharp decline from the prior session as it recovered above $15,600/mt to close 0.45% higher at $15,640/mt. The most-traded SHFE contract also moved higher and ended up 0.64% at 122,800 yuan/mt. It is likely to face resistance from the five-day moving average today with LME nickel trading with support from the Bollinger lower band.  

Lead: Three-month LME lead lost upward momentum as it came off from highs to hit an intraday low of $2,050/mt, ending down 1.36% at $2,061/mt. It is expected to see further downside room. The most-liquid SHFE contract stemmed its eight straight sessions of slide, closing slightly higher at 15,970 yuan/mt. Weak fundamentals, however, will cap the price rally today, with pressure expected at 16,150 yuan/mt. 

Tin: Prices of tin fell amid loaded-up shorts overnight, with three-month LME tin slipping to a low of $16,250/mt before closing $205/mt lower on the day at $16,320/mt, and the most-active SHFE contract losing 760 yuan/mt to end at 135,570 yuan/mt. Support below is expected from $16,000/mt and 135,000 yuan/mt, respectively.