SHANGHAI, Jan 23 (SMM) – Shanghai base metals cruised broadly lower on the last trading day ahead of the week-long Chinese New Year holiday, as concerns grew over the spread of a new coronavirus in China. Market sentiment also took a hit on the back of US President Donald Trump’s latest tariff threat on EU cars and other things.
SHFE lead plunged 2.1% to lead the losses, nickel dropped 1.9%, tin tumbled 1.5%, copper fell close to 1%, zinc shed 0.7% and aluminium lost 0.2%.
The ferrous complex also weakened across the board on the day. Iron ore was the worst performer with a 2.3% decline. Rebar slid 1%, stainless steel fell 0.9%, hot-rolled coil shed 0.8%, coke and coking coal sank 0.4%.
Markets will be watching the European Central Bank tonight as its governing board publishes its first monetary policy decision of the year.
China will kick off its CNY holiday on Friday. The SHFE will be closed from tonight and reopen on Friday January 31.
Copper: The most active SHFE 2003 contract slipped to 47,960 yuan/mt, a low not seen since December 9, before it finished the trading day 0.95% lower at 48,020 yuan/mt.
Aluminium: The most traded SHFE 2003 contract fell during the daytime session, erasing overnight gains to a one-week low of 14,070 yuan/mt before closing the trading day 0.21% weaker at 14,100 yuan/mt.
Zinc: The most active SHFE 2003 contract extended overnight losses to its lowest in more than a week at 18,085 yuan/mt in early morning trade, before it recovered some ground to close the trading day 0.68% lower at 18,160 yuan/mt.
Nickel: The most traded SHFE 2003 contract extended overnight decline to a new six-week low of 105,610 yuan/mt, shortly before it ended the trading day 1.89% lower at 105,850 yuan/mt.
Lead: The most active SHFE 2003 contract plunged to two-week lows in afternoon trade, before it finished the trading day 2.08% lower at 14,850 yuan/mt, its lowest close since January 7. Today’s sharp decline sent SHFE lead below all near-term moving averages.
Tin: The unwinding of long positions pushed the most traded SHFE 2006 contract sharply lower to two-week lows. The contract shed 1.48% on the day to end at 137,340 yuan/mt. Support is seen at 137,000 yuan/mt.