SHANGHAI, Jun 24 (SMM) – SHFE nonferrous metals, except for copper and tin, closed lower on the last trading day ahead of the Dragon Boat Festival, as investors remained concerned about a rising number of coronavirus cases in some parts of the world.
Zinc shed 1% to lead the losses, aluminium fell 0.5%, nickel slipped 0.3% and lead dipped 0.2%, while tin gained 0.4% and copper advanced 0.5%.
For the holiday-shortened week, copper and tin ended in positive territory, marking their sixth consecutive weekly gains, while the other four metals lost at least 0.9%.
The SHFE will be closed for the Dragon Boat Festival holiday on Wednesday night, Thursday and Friday.
On the LME, the nonferrous complex saw turbulent moves in European trading hours as oil prices plunged before their recovered some ground. All the six metals, except for lead, were in negative territory as of 18:26 Beijing time.
Investor sentiment has been shaken by an uptick in the number of COVID-19 cases all over the world as economies emerge from lockdown. White House health advisor Dr. Anthony Fauci warned Tuesday that parts of the US are beginning to see a “disturbing surge” of coronavirus cases.
Copper: The most-traded SHFE August contract strengthened 0.46% to finish the day at 47,860 yuan/mt, after hitting a session-high of 47,920 earlier in the session. It posted a weekly gain of 0.17%, marking the 12th increase in the past 14 weeks for the most active SHFE copper contract.
SMM data showed that copper inventories in China extended their decline this week, as supply remained tight while demand was healthy.
Aluminium: The most-liquid SHFE contract reversed an earlier rebound to finish the day 0.51% lower at 13,605 yuan/mt. It lost 1.38% on the week, following two consecutive weeks of gains. SMM data showed that social inventories of primary aluminium ingots continued to fall this week.
Zinc: The most-active SHFE August contract oscillated in a tight range during the daytime session, erasing some overnight losses to close 1.01% lower at 16,740 yuan/mt, posting a weekly loss of 1.44%. SMM data showed that social inventories of zinc ingots in China inched up this week, as consumption faltered. SHFE zinc is unlikely to stage a substantial rally after the holiday as supply pressure emerges after some smelters recover from maintenance.
Nickel: The most-traded SHFE August contract moved in a tight range during the daytime session as investors remained cautious ahead of the public holiday. It shed 0.26% on the day to 101,640 yuan/mt, marking the third straight day of declines, and it registered a weekly loss of 2.46%. Support is seen at 101,000, while pressure is at 102,000.
Lead: The most-active SHFE August contract hovered in a tight range during the daytime session to end the day 0.21% weaker at 14,470 yuan/mt. Two consecutive days of losses took the contract to end the week 0.92% lower. SMM data showed that lead social inventories in China extended their gains this week.
Tin: The most-liquid SHFE August contract was little changed during the daytime session, holding onto overnight gains to end up 0.35% at 138,220 yuan/mt. Two consecutive days of gains helped it end the week 0.59% firmer.