SHANGHAI, Feb 6 (SMM) – SHFE nonferrous metals, except for lead, ended higher on Thursday on the back of a decline in concerns over the coronavirus impact on the global economy. 

Copper led the increase and closed 1.41% higher. Aluminium climbed 0.4%, zinc added 0.2%, tin advanced 1.21%, nickel rose 0.05%, while lead eased 0.18%.  

The ferrous complex also traded higher as iron ore rebounded 0.94%, rebar increased 0.12%, hot-rolled coil added 0.06%, stainless steel gained 0.08%, and coke grew 0.96%. 

The SHFE night trading session will remain suspended tonight. 

Copper: The most-liquid SHFE 2003 contract rallied for the third consecutive session on Thursday amid optimism that progress was being made containing the coronavirus. The contract shrugged off resistance from 46,000 yuan/mt and hit an intraday high of 46,330 yuan/mt, before it closed up 1.41% on the day at 46,040 yuan/mt. Upbeat private payrolls data from the US eased concerns about weakness in the global economy, and this also supported copper prices. Market confidence on measures that are being taken to mitigate the spread of the virus is highly likely to sustain a price rally. Support from 46,000 yuan/mt will be monitored. 

Aluminium: Short-covering buoyed the most-traded SHFE 2003 contract, which climbed to an intraday high of 13,680 yuan/mt and ended 0.4% higher on the day at 13,670 yuan/mt. SMM retains the view that the price rally will be capped before full recovery of downstream consumers. 

Zinc: The most-traded SHFE 2003 contract hovered steadily in a narrow band and finished the day slightly higher at 17,335 yuan/mt. Trades were thin amid cautious investors with open interest down 1,386 lots to 57,398 lots. The rangebound trend may continue this week. 

Nickel: The most-traded SHFE 2004 contract found support from 105,000 yuan/mt, and extended the price increase from the prior two days, ending 0.05% higher at 105,070 yuan/mt. The K-indicator faced pressure from the 10-day moving average. 

Lead: The most-liquid SHFE 2003 contract extended a rangebound trend, losing 0.18% on the day to close at 14,175 yuan/mt. The decline in the five-day moving average has slowed. Near-term prices are expected to stay at low levels. 

Tin: The most-active SHFE 2006 contract continued to pare losses on Monday as loaded-up longs lifted it to a session high of 133,860 yuan/mt, before it finished 1.21% higher on the day at 133,380 yuan/mt. Pressure above is seen from 134,000 yuan/mt.