SHANGHAI, Aug 11 (SMM) – Metals on the SHFE dropped sharply in the afternoon on Tuesday, with gold plunging more than 2%, as dollar strengthened after China imposed sanctions on US officials in the latest flare-up in tensions between Washington and Beijing.  

Shanghai nonferrous metals, except for copper, traded lower on Tuesday August 11. Tin dropped 2% to lead the losses, aluminium weakened 1.59%, nickel shed 1.43%, lead declined 1.01%, and zinc fell 0.31%, while copper advanced 0.06%.

The ferrous complex traded mixed. Iron ore climbed 4.8%, while hot-rolled coils and rebar shed less than 1%.

SMM data showed that a total of 77 vessels carrying 12.65 million mt of iron ore arrived at major Chinese ports during August 2-8, SMM estimates. This was down 2.31 million mt from the prior week, but up 3.22 million mt from the same period last year.

Russian President Vladimir Putin claimed Tuesday that Russia has developed the first coronavirus vaccine and said his daughter has taken it, local news agencies reported.

Copper: The most-traded SHFE 2009 copper contract climbed to an intraday high of 50,850 yuan/mt this morning as investors added their long positions, but trended lower in the afternoon, finishing the day 0.06% weaker at 50,340 yuan/mt. US Treasury Secretary Mnuchin said that the White House and Congress may reach an agreement on a new round of US economic stimulus package this week, which supported copper prices, but escalating US-China tensions capped gains. Whether the contract could remain above 50,000 yuan/mt will be monitored tonight.

Aluminium: The most-liquid SHFE 2009 aluminium contract ended 1.59% weaker at 14,220 yuan/mt today. Open interest lost 764 lots to 122,000 lots. The contract will test support from the 40-day moving average tonight.

Zinc: The most-active SHFE 2009 contract closed down 0.31% on the day at 19,285 yuan/mt in choppy trading. Uncertainty in relations between the US and China disturbed risky assets. The contract is expected to move rangebound tonight.

Nickel: The most-traded SHFE 2010 nickel contract closed 1.43% lower on the day at 112,130 yuan/mt as People's Bank of China released financial data for July which fell short of, and credit, M2 and the scale of social financing were significantly lower than expectations. Whether the contract could rebound halt its decline tonight will come under scrutiny.

Lead: The most-active SHFE 2009 lead contract fell to an intraday low of 16,040 yuan/mt in afternoon trading when bullion prices declined, before rebounding to finish the day 1.01% lower at 16,130 yuan/mt. The contract will likely move along the five-day moving average and test support from 16,000 yuan/mt tonight.

Tin: The most-liquid SHFE 2010 tin contract came off a session high of 146,550 yuan/mt to an intraday low of 142,600 yuan/mt as prices of gold and silver declined after US dollar index rose, before finishing the day 2% lower at 142,860 yuan/mt. It is expected to move above the 40-day moving average of 141,500 yuan/mt tonight.