SHANGHAI, May 26 (SMM) – SHFE nonferrous metals traded higher for the most part on Tuesday May 26, following they ended mixed Monday. The rebounds, however, were limited as investors remained wary of growing tensions between the US and China.
Copper recovered 0.94%, aluminium added 0.9%, lead climbed 0.53%, tin advanced 0.1%, while zinc shed 0.4% and nickel edged down 0.01%.
The ferrous complex extended decline for the most part as iron ore retreated 2.99%, rebar shed 0.48%, hot-rolled coil fell 0.18%, while stainless steel expanded 0.19%, coke went up 1.19%.
SMM estimates that a total of 83 vessels carrying 13.37 million mt of iron ore arrived at major Chinese ports during May 17-23. This was down 140,000 mt from the prior week.
Crude oil prices rose on Tuesday as participants widened their positions on firm global cues.
Asian shares also gained as increasing optimism surrounding the economic reopen dominated the market during the pre-European session on Tuesday.
Copper: The most-traded SHFE July contract recovered from Monday losses as it hit the session high of 43,910 yuan/mt twice and closed the day 0.94% higher at 43,860 yuan/mt. Open interest added 1,791 lots to 105,000 lots with longs loading up their positions. The contract has returned above the five-day moving average and may test support from 44,000 yuan/mt tonight as bullish technical indicators point to some further upward potential.
Zinc: The most-active SHFE July contract lost for the fifth consecutive day, falling 0.4% one day to end at 16,285 yuan/mt with sustained pressure from the daily moving average. Orders at downstream producers have not improved significantly, which coupled with some supply pressure at smelters, may keep any upward momentum in the contract weak tonight. Pressure from the five-day moving average will be monitored tonight.
Lead: The most-active SHFE July contract faced pressure from the daily moving average, ending 0.53% higher on the day at 14,310 yuan/mt following an intraday low of 14,200 yuan/mt. Support remained from the five-day moving average while fundamentals could lend little support.
Tin: The most-liquid SHFE July contract bounded back after slipping to a session low of 132,380 yuan/mt, finishing the day 0.1% higher at 134,080 yuan/mt. Open interest shrank 11761 lots as both shorts and longs covered their positions. Tonight, support below is seen from the 20-day moving average or 130,000 yuan/mt.