SHANGHAI, Aug 21 (SMM) – SHFE nonferrous metals broadly fell on Friday August 21 due to the concern about the economy.
The number of people filing for unemployment benefits in the US last week was greater than expected, raising concern about the state of the economy as lawmakers struggle to move forward on a new pandemic stimulus package.
Shanghai nonferrous metals, except for aluminium and tin, traded lower on Friday August 21. Copper dropped 0.97% to lead the losses, lead weakened 0.84%, zinc shed 0.72%, nickel declined 0.59%, and aluminium remained unchanged, while tin advanced 0.06%.
Inventories of hot-rolled coils (HRC) and plates across social warehouses and steelmakers, which are used in automobiles and home appliances, stood at 3.9 million mt in the week ended August 21, down 0.86% on week and 14.23% on year, showed SMM data.
The ferrous complex closed mixed. Hot-rolled coil fell 0.03%, iron ore shed 1.29%, while rebar added 0.29%.
Copper: The most-traded SHFE 2009 copper contract climbed to an intraday high of 50,390 yuan/mt after opening, and closed 0.97% lower at 51,800 yuan/mt. The US weekly jobless claims jumped back above 1 million, leading to an unsteady recovery in employment and raising concern about the state of the economy. Domestic copper consumption is now in a low season, and consumer demand and fundamental support for copper prices are weakening. Whether the contract could maintain its upward trend will come under scrutiny tonight.
Aluminium: The most-liquid SHFE 2009 aluminium contract ended the day unchanged at 14,710 yuan/mt. Open interest fell 336 lots to 113,000 lots. The shift of open interests and inventories of aluminium ingot next week will be monitored.
Zinc: The most-active SHFE 2009 contract finished the day 0.72% lower at 20,060 yuan/mt. Open interest grew 3,582 lots to 101,000 lots. The contract is expected to fluctuate on high platform above five-day moving average tonight.
Nickel: The most-traded SHFE 2010 nickel contract slid to an intraday low of 114,750 yuan/mt, before finishing the day 0.59% lower at 115,350 yuan/mt. Open interest increased 3,691 lots to 80,105 lots. The contract is expected to fluctuate between 113000-117500 yuan/mt.
Lead: The most-active SHFE 2009 lead contract fell to an intraday low of 15,955 yuan/mt in morning trading, and finished the day 0.84% lower at 16,030 yuan/mt. Open interest increased 1,557 lots to 23,538 lots. The contract is expected to fluctuate around 16,000 yuan/mt in the near term.
Tin: The most-traded SHFE 2010 tin contract close up 0.41% at 143,870 yuan/mt, before climbing to an intraday high of 144,360 yuan/mt. The contract is expected to move below 20-day moving average of 145,000 yuan/mt.