SHANGHAI, Feb 19 (SMM) – Shanghai nonferrous metals closed higher on Wednesday, with copper holding to more than two-week highs, as investors closely monitored the progress in the recovery of factories and construction in China.
On the SHFE, lead climbed 0.8% on the day, copper rose 0.2%, while aluminium closed flat. Tin edged down 0.02%, zinc shed 0.2% and nickel fell 0.6%.
The ferrous complex, except for iron ore and coking coal, traded lower on Wednesday. Coke declined 0.7%, stainless steel slipped 0.6%, hot-rolled coil lost 0.5% and rebar fell 0.4%.
Dalian iron ore rose for a seventh straight day, gaining 1.1% on the day, on expectations of demand increase amid recovering logistics.
China said that work resumption rate has exceeded 50% for some industrial companies in key economic regions.
The Federal Open Market Committee (FOMC) is poised to release the minutes from its January meeting tonight.
China’s futures markets have suspended night trading session until further notice.
Copper: The most-traded SHFE 2004 contract climbed to a new more than two-week high of 46,540 yuan/mt, before it erased some gains to close the day 0.19% higher at 46,400 yuan/mt. It is likely to try to stand above 46,500 yuan/mt tomorrow.
Aluminium: The most-active SHFE 2004 contract recovered from earlier losses to close the day barely changed at 13,710 yuan/mt.
Zinc: The most-liquid SHFE 2004 contract fell to an intraday low of 17,135 yuan/mt, before it recovered some ground to close 0.17% weaker at 17,170 yuan/mt. SHFE zinc now faces a resistance confluence of several moving averages, and is likely to remain rangebound before inventories see a tangible turnaround.
Nickel: The most-traded SHFE 2004 contract slipped past the five- and 10-day moving averages to an intraday low of 103,650 yuan/mt in afternoon trade, before it closed the day 0.59% lower at 103,810 yuan/mt. Whether it could remain above 103,000 yuan/mt will come under scrutiny tomorrow.
Lead: The most-liquid SHFE 2004 contract continued its rally, gaining 0.8% on the day to end at 14,555 yuan/mt. SHFE lead is still under the pressure from the 20-day moving average, and sees limited support from fundamentals. But its firm LME counterpart may offer some support.
Tin: The most-traded SHFE 2006 contract recouped earlier losses to end the day a tad weaker at 135,700 yuan/mt. SHFE tin held steady. Resistance is seen at the middle Bollinger band and 137,000 yuan/mt, while support is at the five-day moving average.