SHANGHAI, Dec 4 (SMM) –

Copper: Copper prices continued to ease overnight, as Trump’s comments on trade so far this week grew concerns about global trade tensions. Three-month LME copper fell for a fourth straight day, shedding 0.73% on Tuesday to end at $5,815/mt. The most active SHFE 2001 contract slipped 0.34% to 46,940 yuan/mt overnight. Fading optimism surrounding a US-China trade deal boosted gold prices by more than 1% to $1,487/oz, while US crude prices hovered around $55/barrel ahead of OPEC meeting. Copper prices are expected to stay at lows today. LME copper is likely to move between $5,800-5,840/mt, with SHFE copper at 46,800-47,200 yuan/mt. Spot premiums are seen higher at 120-150 yuan/mt, on the back of overnight decline in prices of futures.

Aluminium: Following the downtrend across the nonferrous complex, three-month LME aluminium retreated from three-week highs on Tuesday and lost 1.31% to $1,768/mt. The unwinding of long positions primarily accounted for the loss in LME aluminium. It is expected to trade rangebound between $1,750-1,800/mt today. The most traded SHFE 2001 contract fluctuated to close 0.25% higher at 13,985 yuan/mt overnight, as investors added long positions. Bearish investors, meanwhile, are moving to later-dated contracts. The SHFE 2001 contract is expected to trade between 13,830-14,000 yuan/mt today, with spot premiums of 50-70 yuan/mt over the SHFE 1912 contract.

Zinc: Three-month LME zinc reversed earlier gains to its lowest since September 3 at $2,201/mt on Tuesday, before it ended down 0.65% lower at $2,213.5/mt, marking a five-day losing streak. With LME zinc inventories barely changed from the previous day, market sentiment was dented by heightened global trade tensions. LME zinc is expected to trade between $2,190-2,230/mt today, and support at the lower Bollinger band should remain closely watched. The most active SHFE 2001 contract fluctuated to close 0.2% stronger at 17,800 yuan/mt overnight, pressured by the five-day moving average but supported by the lower Bollinger band. High spot premiums in Shanghai and Ningbo amid tight availability and falling inventories, together with robust downstream consumption, lent support to SHFE zinc and helped it outperform its LME counterpart, leading to a rising SHFE/LME zinc price ratio. The SHFE 2001 contract is expected to move between 17,600-18,200 yuan/mt today. Spot premiums for domestic 0# Shuangyan are seen as high as 380-420 yuan/mt over the SHFE 1912 contract.

Nickel: Three-month LME nickel plunged 2.52% to end Tuesday at $13,360/mt. Support at $13,200/mt will come under scrutiny today. The most traded SHFE 2002 contract tumbled to a new low of 104,510 yuan/mt overnight, before closing down 3.05% at 105,000 yuan/mt, nearing the lower Bollinger band. Whether SHFE nickel could cling to 105,000 yuan/mt should be closely monitored today.

Lead: Three-month LME lead rallied from a new five-month low of $1,890/mt to an intraday high of $1,921/mt on Tuesday, before it gave back all those gains to close down 0.34% at $1,897/mt. There are no signs of an end to the downtrend in LME lead, which is likely to continue to fall today. The most active SHFE 2001 contract slipped to a new low of 14,970 yuan/mt in early trade overnight, before it recovered some ground to close 0.69% lower at 15,015 yuan/mt. Any rally in SHFE lead was limited and short-lived as bears dominated the market. SHFE lead is likely to extend its decline in the short term, as pessimism prevails across the market and technical indicators point to further downside. Limited firmness in prices of battery scrap could not offer much support, either.   

Tin: Three-month LME tin climbed to its highest since October 31 at $16,815/mt on Tuesday, before it finished the trading day 0.85% higher at $16,690/mt. Support lies at the 60-day moving average, while resistance is seen at a previous high of $16,800/mt. The most traded SHFE 2001 contract jumped to a five-week high of 139,600 yuan/mt on short-covering in early trade overnight, before it relinquished some gains to end 0.14% firmer at 138,700 yuan/mt. SHFE tin now resides around the five-day moving average, with resistance at 139,500 yuan/mt and support at 138,000 yuan/mt.