SMM Evening Comments (Nov 25): Shanghai nonferrous metals closed mixed, aluminium rose 1.65%

Published: Nov 25, 2020 18:49

Save

Shanghai base metals ended mixed on Wednesday November 25. Aluminium, the best performer, rose 1.65%, copper added 0.66% and nickel advanced 0.13%, while zinc shed 1%, lead declined 0.62% and tin fell 0.65%.

SHANGHAI, Nov 25 (SMM) – Shanghai base metals ended mixed on Wednesday November 25. Aluminium, the best performer, rose 1.65%, copper added 0.66% and nickel advanced 0.13%, while zinc shed 1%, lead declined 0.62% and tin fell 0.65%.

Copper: The most-traded SHFE 2101 copper contract rose 0.66% to close the day at 54,550 yuan/mt, with open interest declining 4,611 lots to 157,000 lots. The Conference Board Consumer Confidence Index recorded its lowest in three months in November as the Covid-19 pandemic continues to dampen economic and employment expectations. However, US house prices rose 3.1% in the third quarter, and the Trump administration started to transfer power to the Biden team, which underpinned copper prices. Data like US initial claims for jobless benefits in the week ended November 21 set for release tonight and whether the SHFE copper contract could break above 55,000 yuan/mt will be monitored.

Aluminium: The most-traded SHFE 2012 aluminium contract climbed to its highest in 2020 of 16,110 yuan/mt in the afternoon trading session before paring some gains to close the day 1.65% higher at 16,060 yuan/mt, with open interest shrinking 9,631 lots to 109,000 lots. It may rise further in the near term.

Zinc: The most-liquid SHFE 2101 zinc contract finished the day 1% lower at 20,710 yuan/mt, posting a three-day losing streak, with open interest rising 6,687 lots to 101,800 lots. It is likely to move between the five- and ten-day moving averages tonight.

Nickel: The most-traded SHFE 2102 nickel contract rose 0.13% to end the day at 119,660 yuan/mt, with open interest falling 6,142 lots to 156,527 lots.

Lead: The most-active SHFE 2101 lead contract closed the day 0.62% lower at 15,225 yuan/mt, with trading volume decreasing 57,625 lots to 48,097 lots. Downstream consumption was tepid, and both primary and secondary lead remained traded at deep discounts even as lead prices declined, which pressured SHFE lead. The contract is likely to continue to test support from the five-day moving average tonight.

Tin: The most-liquid SHFE 2101 tin contract weakened 0.65% to end the day at 145,190 yuan/mt after hitting an intraday low of 145,100 yuan/mt earlier in the session, with open interest shrinking 6,670 lots to 22,162 lots. It is expected to move between 142,000-147,300 yuan/mt tonight.

Copper Aluminium Zinc Nickel Tin Lead

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

17 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

17 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.

17 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."

17 hours ago