SMM Evening Comments (Nov 10): Shanghai nonferrous metals ended mixed, the ferrous complex mostly declined

Published: Nov 10, 2020 18:18

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SHFE nonferrous metals closed mixed on Tuesday November 10, while the ferrous complex fell for the most part.

SHANGHAI, Nov 10 (SMM) – SHFE nonferrous metals closed mixed on Tuesday November 10, while the ferrous complex fell for the most part.

Copper weakened 0.85%, zinc shed 0.64%, tin slid 0.56% and lead closed flat, while aluminium added 0.27% and nickel rose 1.07%.

The ferrous metals were mostly lower today. Rebar slid 0.31%, hot-rolled coil weakened 0.88%, stainless steel fell 0.76%, coke declined 1.28% and coking coal dropped 0.72%, while iron ore, the best performer, strengthened 1.66%.

SMM data showed that a total of 85 vessels carrying 14.33 million mt of iron ore arrived at major Chinese ports during November 1-7, SMM estimates. This was down 460,000 mt from the previous week, but up 3.05 million mt from the same period last year.

Copper: The most-traded SHFE 2012 copper contract finished the day 0.85% lower at 51,590 yuan/mt. Market sentiment improved significantly on positive coronavirus vaccine news and the prospects of a Biden presidency. However, many European countries remained under a new round of lockdowns amid surging Covid-19 cases, which pressured copper prices, to some extent. Besides, China’s October producer price index (PPI) fell 2.1% year on year, while consumer price index (CPI) rose 0.5% from a year ago, missing expectations, which also weighed on copper prices.

Aluminium: The most-liquid SHFE 2012 aluminium contract climbed 0.27% to end the day at 14,945 yuan/mt, with trading volume rising 24,045 lots to 142,000 lots. The contract is likely to rise further in the near term.

Zinc: The most-active SHFE 2012 zinc contract shed 0.64% to close the day at 20,115 yuan/mt, giving up most of the gains of the previous session. The great progress in the research of coronavirus vaccines suggested the pandemic impact on overseas zinc concentrate mines may ease. Besides, high spot prices also weighed on consumption. The contract may likely to fluctuate at high levels tonight, testing support from the five-day moving average.

Nickel: The most-traded SHFE 2012 nickel contract settled 1.07% higher on the day at 117,940 yuan/mt today.

Lead: The most-active SHFE 2012 lead contract closed flat on the day at 14,495 yuan/mt today, and is likely to test the 40-day moving average again tonight.

Tin: The most-liquid SHFE 2101 tin contract fell 0.56% on the day to close at 145,970 yuan/mt, and is expected to move between 145,000-148,000 yuan/mt tonight.

Market commentary Copper Aluminium Lead Tin Nickel Zinc Tin

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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