SMM Evening Comments (Nov 17): Shanghai nonferrous metals were mostly lower as longs left with profits

Published: Nov 17, 2020 19:22

Save

SHFE nonferrous metals, except for zinc and tin, cruised lower on Tuesday November 17.

SHANGHAI, Nov 17 (SMM) – SHFE nonferrous metals, except for zinc and tin, cruised lower on Tuesday November 17.

Copper slid 0.43%, aluminium shed 0.52%, lead weakened 0.61% and nickel plunged 3.06%, while zinc added 0.97% and tin rose 0.94%.

SMM data showed that a total of 91 vessels carrying 13.35 million mt of iron ore arrived at major Chinese ports during November 8-14, SMM estimates. This was down 980,000 mt from the previous week, but up 1.8 million mt from the same period last year. While arrivals in Tangshan increased 1.15 million on the week, there was a drop of 1.4 million mt in the amount of iron ore arriving in Shandong.

Copper: The most-traded SHFE copper contract switched to the 2101 contract today which closed the day 0.43% lower at 52,910 yuan/mt, with trading volume decreasing 71,000 lots to 120,000 lots. Market mood was improved after news came that a coronavirus vaccine developed by Moderna is 94.5% effective in preventing the virus, and the World Health Organisation (WHO) projected that there will be more “vaccine candidates” coming out at the end of 2020 or the start of 2021. However, investors remained cautious as COVID-19 cases continued to register new single-day highs in the Europe and US. SMM will keep an eye on US economic data set for release tonight.

Aluminium: The most-liquid SHFE 2012 aluminium contract fell 0.52% to end the day at 15,390 yuan/mt, with open interest falling 3,580 lots to 151,000 lots. Support below may be seen between 15,000-15,200 yuan/mt tonight.

Zinc: The most-active SHFE 2012 zinc contract finished the day 0.97% higher at 20,355 yuan/mt, with open interest decreasing 3,700 lots to 77,144 lots. Tightened zinc concentrate supply raised expectations of year-end maintenance at smelters, providing traction to zinc prices, but this may further weigh on the already weakened consumption.

Nickel: The most-traded SHFE 2102 nickel contract slumped 3.06% to end the day at 116,100 yuan/mt, with open interest rising 8,148 lots to 159,741 lots. Stainless steel inventories have built up for several straight weeks amid high production at mills and limited downstream consumption, which narrowed profits of steel makers, prompting them to depress raw materials prices.

Lead: The most-active SHFE 2101 lead contract slid 0.61% to close the day at 14,605 yuan/mt, with trading volume shrinking 4,088 lots to 15,190 lots. Tepid consumption may likely to continue to weigh on lead prices. Whether the contract would fall below the 40-day moving average of 14,580 yuan/mt tonight will be monitored.

Tin: The most-liquid SHFE 2101 tin contract finished the day 0.94% higher at 148,500 yuan/mt, after hitting its highest since July at 150,450 yuan/mt earlier in the session, with open interest rising 2,010 lots to 37,915 lots. It is expected to move between 146,500-152,000 yuan/mt tonight.

Copper Aluminium Lead Tin Zinc Nickel

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.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

12 hours ago

"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"

Premier Li Qiang presided over an executive meeting of the State Council to study policy measures for promoting effective investment. The meeting noted that promoting effective investment plays an important role in stabilizing economic growth and strengthening momentum for development. It is necessary to innovate and improve policy measures, and intensify efforts to enhance the efficiency of utilizing funds such as central budget investments, ultra-long-term special treasury bonds, local government special bonds, and new-type policy-based financial instruments. In conjunction with formulating and implementing the 15th Five-Year Plan

12 hours ago

"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the plenary sessions of the Party’s 20th Central Committee, fully and faithfully apply the new development philosophy, strengthen top-level design, build computing power interconnection nodes oriented toward national hub periods, major strategic regions, and key industries, establish a system of computing power interconnection nodes, improve the efficiency and service level of public computing power resources, and promote high-quality development of computing power.

12 hours ago

Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions

After intensive indirect consultations, the new round of nuclear talks between Iran and the US in Muscat, the capital of Oman, has achieved phased progress. It is reported that during this round of talks, the Iranian and US delegations did not meet directly. Instead, Omani Foreign Minister Badr acted as an intermediary, conveying a series of core proposals, strategic concerns, and policy positions to the other side. The atmosphere at the talks was tense yet efficient. According to preliminary on-site assessments, although both sides continue to negotiate over specific terms, they have reached a consensus on the key objective of "continuing dialogue."

12 hours ago