SMM Evening Comments (Nov 4): Shanghai nonferrous metals ended mixed as investors wait for the outcome of the US election

Published: Nov 4, 2020 18:21

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Shanghai base metals closed mixed on Wednesday November 4. Copper added 0.16%, nickel inched up 0.09% and tin firmed 0.48%, while aluminium slid 0.37%, zinc edged down 0.05% and lead weakened 0.73%.

SHANGHAI, Nov 4 (SMM) – Shanghai base metals closed mixed on Wednesday November 4. Copper added 0.16%, nickel inched up 0.09% and tin firmed 0.48%, while aluminium slid 0.37%, zinc edged down 0.05% and lead weakened 0.73%.

Data from the China Iron and Steel Association (CISA) showed that long steel social inventories of five major varieties of long steel in 20 cities stood at 11.27 million mt in late October, down 890,000 mt or 7.3% from mid-October. The decline month on month has expanded. Inventories have shown a downward trend recently.

Copper: The most-traded SHFE 2012 copper contract fell to an intraday low at 51,460 yuan/mt before clawing back all the losses to end the day 0.16% higher at 51,610 yuan/mt. The market was still pervaded with risk-off sentiment as investors are awaiting the outcome of the US presidential election. However, US stocks registered the largest increase since September as investors were optimistic about a fiscal stimulus bill after the election. In addition, tightened supply of imported copper concentrate may boost copper prices. China is expected to double the total economic volume by 2035, according to its 14th Five-Year Plan and the long-range objectives through 2035.

Aluminium: The most-traded SHFE 2012 aluminium contract closed the day 0.37% lower at 14,750 yuan/mt, with open interest falling 5,494 lots to 131,000 lots.

Zinc: The most-liquid SHFE 2012 zinc contract slid to an intraday low at 19,620 yuan/mt before gaining back most of the losses to finish the day just 0.05% lower at 19,810 yuan/mt.

Nickel: The most-traded SHFE 2102 nickel contract fell steeply to hit its lowest in nearly one month at 114,760 yuan/mt in the morning, but rebounded to finish the day 0.09% higher at 116,320 yuan/mt, generating a V-shaped movement. Pressure above at 117,000 yuan/mt will be monitored tonight.

Lead: The most-active SHFE 2012 lead contract fell 0.73% to end the day at 14,245 yuan/mt. Firm battery scrap prices and output cuts at secondary lead smelters supported lead prices.

Tin: The most-liquid SHFE 2101 tin contract dropped rapidly to a low of around 145,200 yuan/mt after the opening bell as longs left with profits, but cruised higher in the afternoon and closed the day 0.48% firmer at 145,270 yuan/mt. It is expected to fluctuate around 145,000 yuan/mt tonight.

Market commentary Copper Lead Aluminium Tin Nickel Zinc

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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