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SMM Morning Comments (Sep 10): Shanghai base metals were mostly lower as investors eye ECB meeting
Sep 10,2020 09:54CST
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Source:SMM
Shanghai base metals traded lower for the most part on Thursday morning, while their counterparts on the LME set for a mixed start as investors await European Central Bank (ECB) interest rate decision and monetary policy statement.

SHANGHAI, Sep 10 (SMM) — Shanghai base metals traded lower for the most part on Thursday morning, while their counterparts on the LME set for a mixed start as investors await European Central Bank (ECB) interest rate decision and monetary policy statement.

 

On the SHFE, nonferrous metals were mostly higher in overnight trading. Copper added 0.75%, aluminium edged up 0.03%, nickel inched up 0.02% and tin strengthened 0.26%, while zinc shed 0.05% and lead fell 0.88%.

The LME complex fell for the most part on Wednesday. Aluminium slid 0.64%, lead declined 1.1%, nickel slipped 0.17% and tin edged down 0.06%, while copper rose 0.74% and zinc strengthened 0.25%.

 

Copper: Three-month LME copper rose 0.74% to close at $6,759/mt on Wednesday, after hitting an intraday high of $6,765.5/mt earlier in the session. It is expected to move between $6,710-6,780/mt today.  

The most-active SHFE 2010 copper contract climbed 0.75% to end at 52,280 yuan/mt in overnight trading, and is likely to trade between 51,800-52,300 yuan/mt today, with spot premiums higher at 80-130 yuan/mt.

Overnight, US stocks rebounded sharply, with all three major stock indexes closing higher, and this boosted market sentiment. In addition, WIT oil futures recorded the largest increase since June, lifting oil prices off Tuesday’s levels near three-month lows, which provided traction to copper prices. In terms of fundamentals, LME copper stocks continued their declines amid robust demand, helping keep copper prices at high levels.

 

Aluminium: Three-month LME aluminium rebounded from an intraday low of $1,773/mt to end 0.64% lower at $1,783.5/mt on Wednesday, and is expected to fluctuate between $1,770-1,810/mt today.

The most-active SHFE 2010 aluminium contract edged 0.03% higher to settle at 14,385/mt in overnight trading, and is likely to trade between 14,300-14,500 yuan/mt today, with spot premiums at around 60 yuan/mt.  

 

Zinc: Three-month LME zinc rebounded from a more than three-week low of $2,392/mt to close 0.25% higher at an intraday high of $2,427/mt on Wednesday. LME zinc stocks remained unchanged at 219,775 mt. Rebounded US stocks, increased oil prices and weaker US dollar eased market panic and helped support zinc prices. LME zinc is expected to move between $2,400-2,450/mt today.  

The most-traded SHFE 2010 zinc contract edged 0.05% lower to settle at 19,355 yuan/mt in overnight trading. In terms of fundamentals, galvanising orders increased amid optimism over infrastructure construction, and orders of die-cast zinc alloy and zinc oxide also improved. The October contract is likely to trade between 19,200-19,700 yuan/mt today, while spot premiums for domestic 0# Shuangyan are seen slightly higher at 170-190 yuan/mt.    

 

Nickel: The most-active SHFE 2011 nickel contract edged up 0.02% to settle at 116,720 yuan/mt in overnight trading, with open interest decreasing 1,767 lots to 127,000 lots. Pressure above will be seen from 118,000 yuan/mt today.  

 

Lead: Three-month LME lead fell 1.1% to end at $1,894.5/mt on Wednesday, after hitting its lowest in more than one month at $1,890/mt earlier in the session.  

The most-liquid SHFE 2010 lead contract came off an intraday high of 15,385 yuan/mt to close 0.88% lower at 15,185 yuan/mt in overnight trading. Support from downstream demand will come under scrutiny.

 

Tin: Three-month LME tin came off an intraday high of $18,075/mt to an intraday low of $17,940 yuan/mt on Wednesday, before clawing back some losses to end 0.06% weaker at $18,060/mt. Pressure above will be seen from the five-day moving average of $18,150/mt today.

The most-liquid SHFE 2011 tin contract climbed 0.26% to close at 145,150 yuan/mt in overnight trading, after hitting an intraday high of 145,520 yuan/mt earlier in the session. Pressure above will be seen from 145,800 yuan/mt today.

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Lead
Aluminium
Zinc
Nickel
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