SHANGHAI, May 8 (SMM) – SHFE nonferrous metals opened the Friday’s session mixed, as investors weighed the positive China's trade data along with dismal prospects for US payrolls figures.
Copper and zinc extended their gains and added more than 1%. Tin and lead edged up, while aluminium shed over 1%.
The London Metal Exchange will be closed for the bank holiday on Friday.
Overnight, LME base metals extended their increase for the most part, with copper rising 1.19% to become the best performer. Aluminium advanced 0.64%, zinc climbed 0.75%, lead grew 0.55%, while nickel lost 0.32% and tin edged lower.
Oil futures climbed on Thursday, after Saudi Arabia lifted official selling prices for its crude and a surprise rise in Chinese exports raised hopes for further rises in fuel demand.
Copper: Both London and Shanghai copper advanced overnight on the back of confidence that easing lockdowns measures from more economies will bring back growth and demand for nonferrous metals. Copper prices were also buoyed by a softened US dollar Thursday. With support from several moving averages below, the most-traded SHFE contract is seen trading between 42,900-43,500 yuan/mt today. Spot premiums are seen at 120-150 yuan/mt with traders stockpiling at low prices.
Aluminium: Three-month LME aluminium extended a rangebound trend, closing the day 0.64% higher at $1,492/mt. Prospects of reopening the economy supported the futures while uncertainties around the macroeconomic development may see LME aluminium still under pressure from $1,500/mt in the short term. The SHFE June contract relinquished increase from the prior session as it ended down 0.94% on the day at 12,620 yuan/mt. Trading range is expected between 12,300-12,600 yuan/mt today.
Zinc: Three-month LME zinc continued to trend upwards amid anticipations of a demand pickup after economic reopening. It broke up pressure from $2,000/mt and the Bollinger upper band, ending up 0.75% on the day at $2,002.5/mt. LME zinc inventories shrank another 250 mt on Thursday to 100,175 mt. The most-liquid SHFE July contract gave up some gains after rising to a session high of 16,910 yuan/mt, finishing the day 0.96% higher at 16,775 yuan/mt. The domestic infrastructures sector is expected to further lift zinc consumption in May, keeping SHFE zinc between 16,500-17,000 yuan/mt today.
Nickel: Three-month LME nickel hovered in a broad range around $12,300/mt, closing down 0.32% on the day at $12,295/mt given resistance from $12,400/mt. The most-traded SHFE contract also edged lower but support remained from the 10-day moving average. It is expected to move sideways above the 10-day moving average today.
Lead: Three-month LME lead remained under heavy pressure above as it trimmed increase from the early session and finished the day 0.55% higher at $1,646/mt. The most-liquid SHFE also came off after climbed, ending down 0.04% on the day at 13,880 yuan/mt following an intraday high of 14,000 yuan/mt.
Tin: Three-month LME tin inched down to close at $15,190/mt overnight, with LME tin inventories dipping 245 mt to 4,835 mt. The $15,000/mt level will continue to lend support. The most-traded SHFE contract consolidated above 129,400 yuan/mt for most of the day, and ended at 129,370 yuan/mt, up 520 yuan/mt on the day. Pressure above is seen from 130,000 yuan/mt in the short term.