Metals News
SMM Evening Comments (Dec 13)
price review forecast
Dec 13,2019

SHANGHAI, Dec 13 (SMM) – SHFE nonferrous metals closed mixed on Friday, with nickel as the best performer, adding 1.05% on the day. Aluminium grew 0.29%, zinc increased 0.78%, while copper eased 0.31%, lead fell 0.13%, and tin slipped 0.87%. 

The ferrous complex mostly fell as rebar lost 0.28%, hot-rolled coil declined 0.67%, stainless steel shed 0.24%, coke dropped 0.4%, while iron ore climbed 0.31%. 

Copper: Shanghai copper stayed at highs despite moderation, as the results of Britain’s election and hopes of a phased trade deal between China and the US boosted global risk appetite and weighed on the US dollar index. The most-liquid SHFE 2002 contract regained overnight losses and moved to an intraday high of 49,380 yuan/mt, before it trimmed the gains to end 0.31% lower on the day at 49,010 yuan/mt. The continued contango structure indicated bullish prospects for long-term prices. Tonight, the contract is expected to track its LME counterpart and test support from 49,000 yuan/mt. 

Aluminium: Improved macroeconomic sentiment drove longs to enter, lifting the most-traded SHFE 2002 contract above the daily moving average to an intraday high of 13,950 yuan/mt. It finished the session 0.29% higher on the day at 13,945 yuan/mt, nearly above all moving averages. As the KDJ indicators expanded upwards and the MACD red line lengthened, the contract will likely remain robust tonight. 

Zinc: The most-traded SHFE 2002 contract increased for the second straight day amid optimism around de-escalation in US-China trade war. The contract found support from the five- and 20- day moving averages, closing up 0.78% on the day at 18,100 yuan/mt, with continued pressure from the Bollinger middle band. A softened US dollar and reduced inventories of refined zinc in China will offer some upward momentum and see the contract testing pressure from the Bollinger middle band tonight. 

Nickel: Short-covering continued to fuel a price rally of nickel, as the most-liquid SHFE 2002 contract hit an intraday high of 111,000 yuan/mt and ended higher for the fourth consecutive day at 110,970 yuan/mt, up 1.05% on the day. Open interest shrank 12,000 lots to 339,000 lots. Pressure from 113,000 yuan/mt will be monitored tonight. 

Lead: Pressure from the 20-day moving average prevented the most-active SHFE 2001 contract from exceeding 15,330 yuan/mt. The contract halted its six consecutive days of increase with a drop of 0.13%, ending at 15,255 yuan/mt. Support remained from the five-day moving average. A weekly buildup of 9,000 mt in lead inventories across SHFE-listed warehouses, together with narrower price spread between primary and secondary lead, will unlikely to see the contract moving above the 20-day moving average tonight. 

Evening comments
Futures movement
For queries, please contact Frank LIU at
For more information on how to access our research reports, please email
Related Price

No Data