SMM Evening Comments (Nov 19): Nonferrous metals on the SHFE mostly advanced, tin plunged 2.67%

Published: Nov 19, 2020 18:33

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SHFE nonferrous metals rose for the most part on Thursday November 19. Copper added 0.15%, aluminium advanced 1.06%, zinc strengthened 0.99%, lead rose 0.72% and nickel edged up 0.07%, while tin underperformed with a 2.67% loss.

SHANGHAI, Nov 19 (SMM) – SHFE nonferrous metals rose for the most part on Thursday November 19. Copper added 0.15%, aluminium advanced 1.06%, zinc strengthened 0.99%, lead rose 0.72% and nickel edged up 0.07%, while tin underperformed with a 2.67% loss.

SMM data showed that aluminium billet stocks across the five major consumption areas — Foshan, Wuxi, Huzhou, Changzhou and Nanchang — in China fell 12,500 mt from a week ago to 75,400 mt as of Thursday November 19.

Social inventories of primary aluminium ingots across eight consumption areas in China, including SHFE warrants, decreased 14,000 mt from last Thursday to 615,000 mt as of November 19.

Copper: The most-traded SHFE 2101 copper contract added 0.15% to end the day at 52,730 yuan/mt, with open interest increasing 2,289 lots to 120,000 lots. US new house starts grew more than expected in October, recording a new high since February. However, US reported more than 250,000 deaths from COVID-19 and the New York City again shut down schools to curb the spread of the virus. The Chinese government will issue policies to stabilise and expand automobile consumption, which is favorable to copper prices. SMM will eye US first-time filings for jobless benefits tonight.

Aluminium: The most-traded SHFE 2012 aluminium contract rose 1.06% on the day to close at 15,755 yuan/mt, with open interest decreasing 13,268 lots to 143,000 lots. China’s primary aluminium inventories shrank 14,000 on the week to 615,000 mt as of November 19, according to an SMM survey. Low inventories are expected to support aluminium prices.

Zinc: The most-liquid SHFE 2012 zinc contract climbed 0.99% to end the day at 20,845 yuan/mt, with open interest falling 6,079 lots to 75,454 lots, and is likely to stay at high levels tonight.

Nickel: The most-active SHFE 2102 nickel contract plunged to a more than one-week low of 115,150 yuan/mt after the bell, but later reversed all the losses to return above 116,000 yuan/mt before ending the day 0.07% higher at 116,470 yuan/mt, with open interest decreasing 5,501 lots to 149,038 lots.

Lead: The most-traded SHFE 2101 lead contract finished the day 0.72% higher at 14,680 yuan/mt, with open interest rising 569 lots to 26,233 lots. Firm battery scrap prices and roads blocked by snowstorm in Inner Mongolia which may likely to affect lead supply in the near further are expected to underpin SHFE lead. Whether the contract could rise above the five-day moving average of 14,650 yuan/mt again tonight will be monitored.

Tin: The most-active SHFE 2101 tin contract slid 2.67% on the day to end at 147,000 yuan/mt, and is expected to trade between 145,000-149,000 yuan/mt tonight.

Copper Aluminium Zinc Nickel Lead 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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