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SMM Evening Comments (Aug 25): Shanghai nonferrous metals declined for the most part, nickel advanced 0.95%
Aug 25,2020 17:25CST
price review forecast
Source:SMM
SHFE nonferrous metals broadly fell on Tuesday August 25 as bullion prices tumbled.

SHANGHAI, Aug 25 (SMM) – SHFE nonferrous metals broadly fell on Tuesday August 25 as bullion prices tumbled.

 

U.S. and Chinese trade negotiators held a phone call Tuesday morning Beijing time about implementing the phase one agreement between the two countries.

 

Shanghai nonferrous metals, except for zinc and nickel, traded lower on Tuesday August 25. Tin dropped 0.49% to lead the losses, lead weakened 0.06%, copper declined 0.25%, and aluminium fell 0.48%, while zinc climbed 0.25%, and nickel advanced 0.95%.

 

A total of 89 vessels carrying 14.53 million mt of iron ore arrived at major Chinese ports during August 16-22, SMM estimates. This was down 280,000 mt from the prior week, but up 1.34 million mt from the same period last year. 

 

The ferrous complex fell across the board. Hot-rolled coil fell 0.23%, rebar shed 0.45%, and iron ore slipped 2.92%.

 

Copper: The most-traded SHFE 2010 copper contract slipped to a session low of 51,040 yuan/mt, before reversing some losses to finish the day 0.25% weaker at 51,130 yuan/mt. The People’s Bank of China (PBOC) launched a rollover and realized a net investment of 200 billion yuan to maintain a reasonable and abundant liquidity in the banking system. The easing of funds supported copper prices. the recent minutes from The Federal Reserve’s Federal Open Market Committee (FOMC) Meeting did not imply relaxing the forward-looking guidance and Quantitative Easing, and the attitude was biased towards doves but it was not up to market expectations. The US dollar index fluctuated, weighting on copper prices. Whether the contract could stay above 51,000 yuan/mt will come under scrutiny tonight.

 

Aluminium: The most-liquid SHFE 2009 aluminium contract ended 0.48% lower at 14,590 yuan/mt today. Open interest fell 5,978 lots to 99,467 lots. The situation of hedging and arbitrage will be monitored.

 

Zinc: The most-active SHFE 2009 zinc contract generated a V-shaped movement on Monday, closing up 0.25% on the day at 19,840 yuan/mt, after hitting an intraday high of 19,890 yuan/mt. Open interest increased 3,568 lots to 103,000 lots. Overseas zinc mines provoked long positions sentiment due to the suspension of production. Social stocks continued to decrease amid the peak season, supporting zinc prices. Whether the contract could move above five-day moving average will come under scrutiny tonight.

 

Nickel: The most-traded SHFE 2011 nickel contract finished the day 0.95% higher at 117,250 yuan/mt. Open interest fell 9,439 lots to 96,653 lots. The contract is expected to fluctuate between 114000-118000 yuan/mt.

 

Lead: The most-active SHFE 2010 lead contract finished the day 0.06% lower at 15,895 yuan/mt. Open interest increased 246 lots to 26,303 lots. Whether the contract could move below 15,800 yuan/mt will come under scrutiny tonight.

 

Tin: The most-traded 2010 tin contract closed down 0.49% lower at 141,050 yuan/mt. The fundamentals of tin ore supported tin prices. The contract is expected to move below five-day moving average of 142,000 yuan/mt.

 

 

Evening comments
Copper
Nickel
Lead
Tin
Aluminium
Zinc

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