SMM Morning Comments (Jan 13)

SHANGHAI, Jan 13 (SMM) –

Copper: Copper prices rose to two-week highs on Friday as the US dollar weakened. Three-month LME copper climbed to its highest since December 30 at $6,243.5/mt on Friday, before it eased to close the trading day 0.64% higher at $6,203.5/mt. The most active SHFE 2003 contract advanced to a one-week high of 49,230 yuan/mt in Friday night’s trading session, before giving back all those gains to end a tad weaker at 48,920 yuan/mt. Optimism over a US-China trade deal is likely to boost market sentiment this week. LME copper is expected to move between $6,180-6,230/mt today, with SHFE copper at 48,800-49,200 yuan/mt.

Aluminium: Three-month LME aluminium recovered from earlier losses to finish the trading day 0.44% stronger at $1,812/mt on Friday. It is expected to trade between $1,790-1,820/mt today. The most traded SHFE 2003 contract inched down to 14,065 yuan/mt on Friday night. It is likely to move at 14,000-14,150 yuan/mt today, while spot discounts are seen at a maximum of 40 yuan/mt against the SHFE 2001 contract.

Zinc: Three-month LME zinc fluctuated to close 0.19% higher at $2,369.5/mt on Friday. Support lies at the 60-day moving average, while resistance is seen at the upper Bollinger band. Zinc stocks across LME warehouses decreased 0.34% on the day to 51,200 mt. LME zinc is expected to trade between $2,340-2,380/mt today. The most active SHFE 2003 contract recovered from an earlier slip to close marginally lower at 18,305 yuan/mt. It is likely to trade between 18,100-18,400 yuan/mt today, while spot premiums for domestic 0# Shuangyan are seen at 140-170 yuan/mt over the SHFE 2001 contract, as consumption weakens with downstream consumers closed for the Chinese New Year holiday.

Nickel: Three-month LME nickel rose 0.78% on Friday to close at $14,230/mt, marking a fifth straight day of gains. The most traded SHFE 2003 contract strengthened 0.55% in Friday night’s trading session and closed at 112,340 yuan/mt. Pressure at 113,000 yuan/mt will come under scrutiny today.

Lead: Three-month LME lead climbed to a one-month peak of $1,950/mt on Friday, before it erased those gains to close the trading day 0.1% lower at $1,928.5/mt. The most active SHFE 2003 contract advanced 0.33% on Friday night to end at 15,025 yuan/mt. Tight availability supported SHFE lead, which may pull back this week on weaker trades.

Tin: Three-month LME tin gained 0.35% on Friday to end at $17,265/mt. Resistance is seen at $17,500/mt. The most traded SHFE 2006 contract slipped to a session-low of 137,050 yuan/mt on Friday night, before it recovered some ground to close 0.15% weaker at 137,350 yuan/mt. Support is seen at the five-day moving average at 136,500 yuan/mt.