SMM Evening Comments (Nov 18): Shanghai nonferrous metals closed mixed, aluminium jumped 2.63%

SHANGHAI, Nov 18 (SMM) – Shanghai base metals ended mixed on Wednesday November 18. Aluminium, the best performer, jumped 2.63% to lead the gains, zinc rose 2.06% and tin increased 1.59%, while copper shed 0.3%, lead edged down 0.07% and nickel weakened 1.51%.

Copper: The most-traded SHFE 2012 copper contract finished the day 0.3% lower at 53,000 yuan/mt, with trading volume shrinking 13,000 lots to 107,000 lots. The US Federal Reserve Chairman Jerome Powell said he expects the economic recovery that has taken root so far to continue “at a solid pace,” but cautioned that significant downside risks exists, even as progress on new vaccines and therapies have emerged. The US dollar index, which measures the greenback against a basket of major currencies, extended slight declines to around 82.3, providing some support to copper prices. Whether the contract could break above the upper Bollinger band tonight will be monitored.

Aluminium: The most-traded SHFE 2012 aluminium contract trended higher today, jumping 2.63% to end the day at 15,785 yuan/mt, with trading volume expanding 43,727 lots to 147,000 lots. The contract is expected to remain firm in the short term.  

Zinc: The most-liquid SHFE 2012 zinc contract closed the day 2.06% firmer at 20,770 yuan/mt after recording a new high in 2020 of 20,870 yuan/mt earlier in the session, with open interest increasing 4,389 lots to 81,533 lots. Some smelters planning to conduct maintenance at the end of the year and the South African Gamsberg mine collapsed accidentally overnight boosted market mood. The contract may likely to remain firm tonight.

Nickel: The most-traded SHFE 2102 nickel contract fell 1.51% to close the day at 116,280 yuan/mt, with open interest declining 5,202 lots to 154,539 lots.

Lead: The most-active SHFE 2012 lead contract edged down 0.07% to close the day at 14,610 yuan/mt, with open interest rising 2,499 lots to 25,664 lots. Weakened consumption deterred SHFE lead from rising higher, but firm battery scrap prices remained supportive to lead prices.   

Tin: The most-liquid SHFE 2101 tin contract finished the day 1.59% higher at 151,600 yuan/mt, after hitting its highest since March 2019 at 152,580 yuan/mt earlier in the session, with open interest rising 4,515 lots to 42,430 lots. It is likely to move between 147,000-154,000 yuan/mt tonight.