SHANGHAI, Aug 12 (SMM) — Nonferrous metals on the LME declined across the board on Wednesday morning as US dollar firmed amid US-China tensions and a deadlock between Congress and the Trump administration over fiscal stimulus. Their counterparts on the SHFE all moved lower as well as of 10:13 Beijing time.
Shanghai base metals settled mixed in overnight trading. Zinc jumped 1.22%, lead rose 0.43% and nickel edged 0.04% up, while copper shed 0.35%, aluminium fell 0.31% and tin sank 1.52%.
On the LME, nonferrous metals, except for tin, cruised higher on Tuesday. Copper and aluminium inched up, zinc rose nearly 1.55%, lead jumped nearly 2.63% and nickel advanced nearly 0.8%, while tin shed 0.51%.
Copper: Three-month LME copper edged 0.06% higher at $6,405/mt on Tuesday. It is likely to move between $6,340-6,400/mt today.
The most-active SHFE 2009 copper contract closed 0.35% weaker at 50,570 yuan/mt in overnight trading. It is likely to trade between 50,300-50,800 yuan/mt today, while spot premiums are seen stable at 60-120 yuan/mt.
Spot gold crashed more than 6%, and spot silver dived more than 12% as better-than-expected US producer price index (PPI) boosted US dollar index, which weighed on copper prices.
Aluminium: Three-month LME aluminium finished the day 0.17% firmer at $1,786/mt on Tuesday.
The most-liquid SHFE 2009 aluminium contract declined 0.31% to settle at 14,260 yuan/mt in overnight trading. It is expected to move between 14,150-14,550 yuan/mt, while spot premiums are seen slightly lower at 50-70 yuan/mt.
Zinc: Three-month LME zinc rose 1.55% to end at $2,419/mt in choppy trading on Tuesday. Zinc stocks across LME warehouse dipped 0.04% or 75 mt to 197,675 mt. A possible Russian coronavirus vaccine and hopes of new US economic stimulus package increased risk appetite, which bolstered zinc prices. LME zinc is expected to move between $2,370-2,420/mt today.
The most-traded SHFE 2009 zinc contract settled 1.22% higher at 19,575 yuan/mt in overnight trading, after hitting a session high of 19,620 yuan/mt. Limited inflow of imported zinc and improved downstream consumption will underpin SHFE zinc. The September contract is expected to trade between 19,200-19,700 yuan/mt today, while spot premiums for domestic 0# Shuangyan are seen stable at 80-90 yuan/mt.
Nickel: The most-active SHFE 2010 nickel contract edged 0.04% higher at 113,520 yuan/mt in overnight trading. Russia registering the first coronavirus vaccine and encouraging economic numbers bolstered SHFE nickel. Whether the October contract could remain above 113,000 yuan/mt today will come under scrutiny.
Lead: Three-month LME lead settled 2.63% firmer at $1,952.5/mt on Tuesday on optimism over a coronavirus vaccine.
The most-active SHFE 2009 lead contract rebounded from a session low of 16,145 yuan/mt to jump to a session high of 16,360 yuan/mt, before erasing some gains to close 0.43% higher at 16,265 yuan/mt in overnight trading.
Tin: Three-month LME tin came off a session high of $17,795/mt to an intraday low of $17,635/mt, before regaining some ground to finish the day 0.51% lower at $17,700/mt. Support below is seen at $17,600/mt today.
The most-liquid SHFE 2010 tin contract plunged from a session high of 143,810 yuan/mt to an intraday day low of 141,810 yuan/mt, before reversing some losses to close 1.52% weaker at 142,890 yuan/mt in overnight trading. Support below is seen at around the 40-day moving average of 141,500 yuan/mt today.
