SMM Evening Comments (Nov 24): Shanghai nonferrous metals were mostly lower on Thursday

SHANGHAI, Nov 24 (SMM) – SHFE nonferrous metals, except for copper and nickel, cruised lower on Tuesday November 24. Aluminium edged down 0.03%, zinc shed 0.99%, lead slid 0.19% and tin weakened 0.12%, while copper rose 1.26% and nickel advanced 1.85%.

SMM data showed that a total of 87 vessels carrying 14.52 million mt of iron ore arrived at major Chinese ports during November 15-21, SMM estimates. This was up 1.17 million from the previous week and 2.33 million mt from the same period last year. While arrivals in Shandong increased nearly 1.5 million on the week, there was a slight drop in the amount of iron ore arriving in Tangshan.

Copper: The most-traded SHFE 2101 copper contract climbed to its highest in 2020 of 54,850 yuan/mt today before paring some gains to end 1.26% higher at 54,770 yuan/mt, with open interest rising 14,219 lots to 162,000 lots. IHS Markit US composite PMI registered the fastest growth since March 2015 in November, and this, combined with progress in coronavirus vaccine, significantly boosted market sentiment. In addition, US President-elect Joe Biden planned to nominate former Federal Reserve Chairwoman Janet Yellen as Treasury Secretary, which further raised hopes of a fiscal stimulus package. German third-quarter unadjusted GDP set for release tonight will be monitored.  

Aluminium: The most-liquid SHFE 2012 aluminium contract edged down 0.03% on the day to close at 15,880 yuan/mt, with open interest falling 14,168 lots to 119,000 lots.

Zinc: The most-active SHFE 2101 zinc contract finished the day 0.99% lower at 20,930 yuan/mt, with open interest decreasing 4,116 lots to 95,149 lots, and is expected to fluctuate around the five-day moving average tonight.

Lead: The most-active SHFE 2101 lead contract finished the day 0.19% lower at 15,385 yuan/mt with trading volume rising 29,032 lots to 105,749 lots. Some secondary lead smelters in Henan resumed production as local air pollution eased while downstream consumption weakened, which pressured SHFE lead. The contract is likely to move between 15,200-15,450 yuan/mt tonight.

Tin: The most-liquid SHFE 2101 tin contract ended 0.12% lower on the day at 146,410 yuan/mt, with open interest shrinking 4,825 lots to 28,832 lots, and it is expected to trade between 145,000-147,500 yuan/mt tonight.