SHFE nonferrous metals rose across the board on Friday, as market sentiment was rallied after China’s Ministry of Finance pledged to make an early allocation of the special-purpose bond quotas for transportation infrastructure construction. 

Crude oil prices jumped on Thursday, following their biggest-ever quarterly losses, as US President Donald Trump said he expected Saudi Arabia and Russia to reach a deal soon to end their oil price war.

Shanghai base metals opened mostly higher on Wednesday morning, as Beijing said that it will roll out a set of fiscal and financial policies to expand domestic demand, assist businesses reopening, sustain employment, and help all types of businesses to weather this difficult time.

Social inventories of lead ingots in China continued to fall this week, as downstream consumers kicked off a new round of long-term contracted procurement. SMM data showed that lead social stocks across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin decreased about 7,800 mt in the week ended March 27 to 17,900 mt.

SHFE copper and nickel declined and other base metals rose marginally on Thursday following two days of rallies. Remerged concerns about a coronavirus-driven global recession saw copper give up gains, despite the passage of a $2 trillion stimulus package in the US aimed at offsetting the economic fallout from the coronavirus.

Zinc rose 0.8%, tin climbed 0.7%, nickel advanced 0.6%, aluminium gained 0.2% and copper inched up 0.1%, while lead fell 0.6%.

Lead plunged 1.4% to lead the losses across nonferrous metals, zinc dropped 1.2%, copper fell 0.8%, aluminium shed 0.7%, and nickel lost 0.5%, while tin extended gains by 0.6%.

SHFE tin, copper and nickel advanced 1.4%, zinc rose 0.7%, aluminium gained 0.5%, while lead stayed flat.

Producers that reopened in the previous two weeks (weeks of February 10 and 17) have ramped up to an operating rate of above 50%, as migrant workers returned following the end of self-quarantine.

Manpower shortages and logistical constraints limit operating rates