SHANGHAI, Nov 9 (SMM) — SHFE nonferrous metals advanced across the board on Monday November 9, as the US dollar touched a ten-week low as former US Vice President Joe Biden crossed the threshold of the 270 electoral college votes required for victory.
Zinc jumped 2.81% to lead the gains, lead rose 1.43%, copper added 0.7%, aluminium advanced 0.37%, nickel strengthened 0.96% and tin edged up 0.05%.
SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei increased by 4,500 mt from last Friday November 6 to 169,700 mt as of Monday November 9. The stocks were up 4,700 mt from last Monday November 2.
Copper: The most-active SHFE 2012 copper contract climbed to its highest in more than two weeks at 52,240 yuan/mt in the morning session, and ended 0.7% firmer on the day at 51,840 yuan/mt, with trading volume rising significantly by 49,000 lots to 127,000 lots. As Biden crossed the threshold of the 270 electoral college votes required for victory on Saturday by winning the battleground state of Pennsylvania, investors became optimistic about future fiscal stimulus packages and measures against coronavirus. On the data front, US nonfarm employment rose by 638,000 in October, topping expectations, and the growth in China’s export accelerated in October, and import increased for a second straight month. These supported copper prices.
Aluminium: The most-liquid SHFE 2012 aluminium contract rose 0.37% to finish the day at 14,870 yuan/mt, after hitting a two-year high at 14,985 yuan/mt earlier in the session. It is expected to remain firm in the near term amid the weak US dollar index.
Zinc: The most-traded SHFE 2012 zinc contract closed 2.81% higher on the day at 20,465 yuan/mt, after hitting its highest since May 2019 at 20,475 yuan/mt earlier in the session. The fading uncertainties over the US presidential election and expectations of inflation boosted zinc prices.
Lead: The most-traded SHFE lead contract finished the day 1.43% higher at 14,545 yuan/mt. Whether the contract could steady above the 20-day moving average will be watched tonight.
Tin: The most-active SHFE 2101 tin contract closed the day just 0.05% firmer at 146,470 yuan/mt, and is likely to move between 145,000-148,000 yuan/mt tonight.