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SMM Morning Comments (Sep 8): Shanghai base metals were mostly higher on Tuesday morning
Sep 8,2020 10:16CST
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Source:SMM
Shanghai base metals, except for zinc and nickel, opened on a positive note on Tuesday morning, holding onto overnight gains, while the LME complex traded lower for the most part, as investors monitor further tensions between the US and China.

SHANGHAI, Sep 8 (SMM) — Shanghai base metals, except for zinc and nickel, opened on a positive note on Tuesday morning, holding onto overnight gains, while the LME complex traded lower for the most part, as investors monitor further tensions between the US and China.

 

Shanghai base metals rose for the most part in overnight trading. Copper added 0.46%, aluminium advanced 0.52%, zinc edged up 0.05%, lead climbed 0.32% and tin rose 0.89%, while nickel underperformed with a 0.23% loss.

Their counterparts on the LME closed mixed on Monday. Copper inched up 0.18%, aluminium strengthened 0.31% and tin rose 0.52%, while lead weakened 0.28%, nickel fell 0.85% and zinc traded flat.

 

Copper: Three-month LME copper ended 0.18% higher at $6,792/mt on Monday, and is expected to trade between $6,760-6,830/mt today. Copper stocks across LME-listed warehouses shrank by 4,900 mt to its lowest in nearly 15 years, and this, combined with mounting tensions between Codelco and unions, underpinned copper prices.

The most-traded SHFE 2010 copper contract closed 0.46% firmer at 52,500 yuan/mt in overnight trading, and is likely to move between 52,300-52,900 yuan/mt today, with spot premiums slightly higher at 30-110 yuan/mt. High copper prices muted trades in the spot market.  

 

Aluminium: Three-month LME aluminium firmed 0.31% to end at $1,797.5/mt on Monday, and is expected to fluctuate between $1,760-1,820/mt today.

The most-active SHFE 2010 aluminium contract closed 0.52% higher at 14,510 yuan/mt in overnight trading. Relatively low inventories and a traditional high season will limit the decline in aluminium prices in the near term. The October contract is likely to trade between 14,500-14,800 yuan/mt today, while spot premiums are seen at 60-90 yuan/mt against the September contract.  

 

Zinc: Three-month LME zinc came off an intraday high of $2,521/mt to an intraday low of $2,479/mt, before wiping out some losses to close flat at $2,507.5/mt on Monday. LME zinc stocks remained high, dipping 175 mt or 0.08% to 219,875 mt. Dollar bounce-back weighed on nonferrous metals, and expiration of various relief packages triggered concerns on the sustainability of the economy’s recovery. LME zinc is expected to move between $2,480-2,530/mt today.

The most-traded SHFE 2010 zinc contract edged up 0.05% to end at 19,870 yuan/mt in overnight trading. Escalating tensions between the US and China dampened market confidence, but export data improved in a high season. The contract is likely to trade between 19,800-20,300 yuan/mt today, while spot premiums for domestic 0# Shuangyan are seen at 140-150 yuan/mt over the October contract.

 

Lead: Three-month LME lead came off an intraday high of $1,990/mt to an intraday low of $1,966.5/mt on Monday, before regaining some ground to close 0.28% lower at $1,972.5/mt.

The most-active SHFE 2010 lead contract rose 0.32% to end at 15,590 yuan/mt in overnight trading, after earlier hitting a session high of 15,660 yuan/mt.  

 

Tin: Three-month LME tin came off an intraday high of $18,345/mt to an intraday low of $18,050/mt on Monday, before reversing some losses to settle 0.52% firmer at $18,280/mt.

Tin: The most-active SHFE 2011 tin contract rose 0.89% to settle at 147,660 yuan/mt in overnight trading, after earlier touching a session high of 147,960 yuan/mt. Pressure above will be seen from 148,700 yuan/mt today.   

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