SMM Evening Comments (Feb 7): Copper halted increase on worries about coronavirus risks

Published: Feb 7, 2020 19:31
Investors worried about an escalation in virus outbreak given the post-holiday travel rush next week

SHANGHAI, Feb 7 (SMM) – SHFE nonferrous metals mostly closed lower on Friday on the back of remerged concerns about the economic impact of a coronavirus outbreak amid mounting death toll. 


Copper shed 0.54%, lead eased 0.67%, zinc fell 0.37%, nickel declined 0.11%, while aluminium added 0.48%, and tin advanced 0.96%.  


The ferrous complex, meanwhile, traded mostly higher as iron ore climbed 0.43%, rebar increased 0.91%, hot-rolled coil rose 0.55%, coke went up 0.48%, while stainless steel edged lower. 


The SHFE night trading session will remain suspended tonight. 


Copper: The most-traded SHFE 2003 contract failed to extend a price rally from the prior three sessions as investors worried about an escalation in virus outbreak given the post-holiday travel rush next week. The contract slipped to a session low of 45,680 yuan/mt after opened at 45,850 yuan/mt, and finished the trading day 0.54% lower at 45,690 yuan/mt. But SMM remains optimistic about a near-term price recovery as more measures will be introduced to contain the virus. With support from the five-day moving average and bullish signals from technical indicators, the contract will likely test support from 46,000 yuan/mt. 


Aluminium: The most-active SHFE 2003 contract gained for the fourth consecutive day and closed up 0.48% on Friday at 13,725 yuan/mt, but this failed to regain all losses on Monday. Open interest lost 1,198 lots to 84,114 lots as investors covered their short positions. Some downstream produces will resume operations next week, which is supportive of aluminium prices. 


Zinc: The most-active SHFE 2004 contract retreated after short-covering sent it to an intraday high of 17,395 yuan/mt. It ended down 0.37% on the day at 17,315 yuan/mt. Elevated inventories on transportation restrictions may cap any upside potential in zinc prices. The contract will remain rangebound next week. 


Nickel: The most-active SHFE 2004 contract hovered sideways between 105,000-105,500 yuan/mt and ended down 0.11% at 105,260 yuan/mt. The rangebound trend may continue next week. 


Lead: The most-active SHFE 2003 contract showed signs of downside potential as loaded-up shorts weighed it to an intraday low of 14,035 yuan/mt and ended it at 14,070 yuan/mt, down 0.67% on the day. SMM expects some headwinds for lead price recovery net week. 


Tin: Continued support from loaded-up longs buoyed the most-liquid SHFE 2006 contract to an intraday high of 135,290 yuan/mt, before it ended higher for the fourth straight day by 0.96% at 133,980 yuan/mt. Pressure above is seen from 136,000 yuan/mt. 

 

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
US Copper Prices Hit Record High on Supply Risks and Tariff Bets
19 mins ago
US Copper Prices Hit Record High on Supply Risks and Tariff Bets
Read More
US Copper Prices Hit Record High on Supply Risks and Tariff Bets
US Copper Prices Hit Record High on Supply Risks and Tariff Bets
US COMEX copper prices surged to record highs as traders increasingly bet on potential new tariffs targeting critical metal imports. At the same time, global copper supply remains under pressure from mining disruptions, sulphuric acid shortages, and tight concentrate availability. Analysts said demand from AI infrastructure, power-grid expansion, and clean-energy investment continues to strengthen expectations for long-term copper shortages. Market participants believe the price gap between US copper futures and LME copper could widen further if tariff risks escalate.
19 mins ago
McEwen Copper Secures Financing Push for Major Argentina Copper Mine
33 mins ago
McEwen Copper Secures Financing Push for Major Argentina Copper Mine
Read More
McEwen Copper Secures Financing Push for Major Argentina Copper Mine
McEwen Copper Secures Financing Push for Major Argentina Copper Mine
McEwen Copper said on May 11 that it has secured arrangements for a $2.4 billion loan package to help finance development of the Los Azules copper project in Argentina. Total project financing is expected to reach $4 billion, alongside a planned IPO later this year. The mine is targeting first production around 2029–2030 with annual copper cathode output exceeding 200,000 tons. Rising copper prices are helping reopen financing channels for major mining projects globally.
33 mins ago
Data: SHFE, DCE market movement (May 14)
1 hour ago
Data: SHFE, DCE market movement (May 14)
Read More
Data: SHFE, DCE market movement (May 14)
Data: SHFE, DCE market movement (May 14)
The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 14 May , 2026
1 hour ago
SMM Evening Comments (Feb 7): Copper halted increase on worries about coronavirus risks - Shanghai Metals Market (SMM)