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SMM Evening Comments (Nov 29)

iconNov 29, 2019 18:43
Source:SMM
SHFE nonferrous metals closed mixed on Friday

SHANGHAI, Nov 29 (SMM) – SHFE nonferrous metals closed mixed on Friday. Copper shed 0.15%, tin fell 0.22%, nickel slipped 3.04%, while aluminium gained 0.87%, lead rose 0.32%, and zinc advanced 0.03%.  

The ferrous complex also traded on a mixed note as iron ore added 0.31%, rebar gained 0.92%, hot-rolled coil increased 0.79%, while stainless steel lost 1.16%, and coke went down 0.46%. 

Copper: The most-liquid SHFE 2001 contract consolidated around 47,300 yuan/mt with the upside room being capped by persistent worries over the status of US-China trade negotiations. Slowing economic growth in the eurozone intensified worries about demand for industrial metals, and this also kept copper prices under pressure. The SHFE 2001 contract slipped to an intraday low of 47,220 yuan/mt before it pared some losses to finish at 47,320 yuan/mt, down 0.15% on the day. Tonight, technical pressure above may see the contract testing support from 47,300 yuan/mt. 

Aluminium: The most-active SHFE 2001 contract extended increase from the previous day as the continued decline in social inventories of primary aluminium grew morale among bullish position. The contract hit the highest in nearly two weeks, at 13,890 yuan/mt, before it ended up 0.87% on the day at 13,885 yuan/mt. Further upside room may be limited tonight, and changes in open interest will be monitored. 

Zinc: The most-liquid SHFE 2001 contract stemmed decline at 17,890 yuan/mt, after SMM data pointed to a weekly decline in domestic social inventories of refined zinc. The contract climbed to an intraday high of 18,105 yuan/mt and closed up 0.03% on the day at 18,040 yuan/mt. However, there remain downside risks in prices as US-China trade uncertainties boost safe-haven sentiment. Support from 18,000 yuan/mt will be monitored tonight. 

Nickel: The most-traded SHFE 2002 contract extended decline on supply concerns, as it diverged from the five-day moving average and lost 3.04% on the day to close at 109,330 yuan/mt. Open interest increased 38,000 lots to 370,000 lots as investors aggressively loaded up their bearish position. The contract is expected to test support from 118,000 yuan/mt tonight. 

Tin: The most-traded SHFE 2001 contract hovered within a broad range today, closing down 0.22% at 138,410 yuan/mt, trimming gains from the previous session. It is seen trading with support from 138,000 yuan/mt and resistance from 139,500 yuan/mt tonight. 

Evening comments
Futures movement

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