SMM Evening Comments (Sep 8): Shanghai nonferrous metals closed mostly higher, zinc fell 0.3%

Published: Sep 8, 2020 17:51
SHFE nonferrous metals rose for the most part on Tuesday September 8 as overseas demand rebounded under the dual support of economy stimulus and strictly controlled pandemic.

SHANGHAI, Sep 8 (SMM) – SHFE nonferrous metals rose for the most part on Tuesday September 8 as overseas demand rebounded under the dual support of economy stimulus and strictly controlled pandemic.

 

Copper, the best performer, rose 0.63%, aluminium advanced 0.35%, lead climbed 0.35%, nickel went up 0.13% and tin gained 0.59%, while zinc edged down 0.3%.

 

A total of 93 vessels carrying 14.1 million mt of iron ore arrived at major Chinese ports during August 30-September 5, SMM estimates. This was up 520,000 mt from the prior week and 3.25 million mt from the same period last year.

 

The ferrous complex fell across the board. Hot-rolled coil fell 1.36%, rebar shed 0.85% and iron ore went down 1.63%.

 

Copper: The most-traded SHFE 2010 copper contract fell to a session low of 52,320 yuan/mt after the opening bell, and closed 0.63% higher at 52,590 yuan/mt today. Chile will conduct labor bargaining in September, leading to worries about the tight supply and bolstering copper prices. LME inventories hit a new low in recent years, less than 80,000 mt, which also supported copper prices at highs. Whether the contract could maintain its upward trend will come under scrutiny tonight.

 

Aluminium: The most-liquid SHFE 2010 aluminium contract slipped to a session low of 14,460 yuan/mt and closed up 0.35% at 14,485 yuan/mt today. Open interest fell 944 lots to 121,000 lots.

 

Zinc: The most-active SHFE 2010 zinc contract failed to break through 19,910 yuan/mt and ended the day 0.3% lower at 19,800 yuan/mt. Open interest fell 1,102 lots to 94,076 lots. The contract is expected to fluctuate rangebound tonight.

 

Nickel: The most-traded SHFE 2011 nickel contract rose to an intraday high of 120,050 yuan/mt in afternoon trading and closed up 0.13% at 119,610 yuan/mt today. The contract generated a V-shaped movement on Tuesday. Open interest fell 1,265 lots to 146,827 lots. The contract is expected to move below 120,000 yuan/mt tonight.

 

Lead: The most-traded SHFE 2010 lead contract fell rapidly to a session low of 15,530 yuan/mt after opening, and finished the day 0.35% higher at 15,595 yuan/mt. Open interest fell 1,543 lots to 24,903 lots. Battery scrap prices declined and the cost of secondary lead fell amid sluggish fundamental consumption, weighing on the lead prices. Whether the contract could move above 15,550 yuan/mt will be monitored tonight.

 

Tin: The most-liquid SHFE 2011 tin contract climbed to an intraday high of 148,150 yuan/mt and closed 0.59% higher at 147,220 yuan/mt today. Open interest rose 978 lots to 23,050 lots. Pressure above is expected to around 148,500 yuan/mt.

 

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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