SHANGHAI, Sep 2 (SMM) — SHFE nonferrous metals rose for the most part on Wednesday September 2.
In a world rocked by the coronavirus pandemic and tensions with the U.S., the Chinese government has come out with yet another batch of policy terms to bolster its own economy, this time under the vague umbrella of “dual circulation.” The phrase refers broadly to two circles of economic activity — internal and external — with greater emphasis than before on business at home.
Tin was the best performer with a rise of 0.83%. Zinc advanced 0.74%, lead increased 0.19% and nickel went up 0.36%, while aluminium decreased 0.45% and Cooper fell 0.72%.
Social inventories of long steel (including wire rods and rebar) in Guangzhou increased 2.76%, or 35,500 mt, in the week ended September 2 to 1.32 million mt, showed SMM data. The stocks were 53.17% higher than the same period last year.
The ferrous complex also traded higher. Iron ore increased 1.06%, rebar rose 0.11%, and hot-rolled coil gained 0.02%.
Copper: The most-traded SHFE 2010 copper contract slipped to a session low of 51,700 yuan/mt, and finished the day 0.72% weaker at 52,070 yuan/mt. The US dollar index rebounded from a two-year low due to the strong impact of the US manufacturing Purchasing Managers’ Index (PMI). Automatic data processing (ADP) employment for August will come under scrutiny tonight.
Aluminium: The most-liquid SHFE 2010 aluminium contract ended 0.45% lower at 14,505 yuan/mt today. Open interest increased 3,588 lots to 127,000 lots. The basis and the flow of funds will come under scrutiny.
Zinc: The most-active SHFE 2010 zinc contract fell to an intraday low of 20,170 yuan/mt before regaining some ground to end 0.74% higher at 20,325 yuan/mt today. Open interest fell 7,695 lots to 108,356 lots. It is temporarily doubtful whether the domestic consumption prospect can match the increase of smelter output. The contract is expected to fluctuate on high platform tonight.
Nickel: The most-traded SHFE 2011 contract finished the day 0.36% higher at 122,180 yuan/mt. Open interest shrank 16,896 lots to 122,180 lots.
Lead: The most-active SHFE 2010 contract ended the day 0.19% higher at 15,845 yuan/mt. Open interest shrank 400 lots to 24,907 lots. Whether the contract could move above 15,900 yuan/mt will be monitored tonight.
Tin: The most-liquid SHFE 2011 tin contract closed up 0.83% at 146,530 yuan/mt today. Open interest increased 856 lots to 24,163 lots. Pressure above is expected to around 148,000 yuan/mt.