SMM Evening Comments (Nov 27): Nonferrous metals on the SHFE rose for the most part, nickel jumped 2.94%

Published: Nov 27, 2020 19:07

Save

SHFE nonferrous metals increased broadly on Friday November 27. Nickel, the best performer, jumped 2.94%, copper rose 2.11%, aluminium advanced 1.67%, tin added 1.56% and zinc climbed 0.86%, while lead underperformed with a 0.13 loss.

SHANGHAI, Nov 27 (SMM) – SHFE nonferrous metals increased broadly on Friday November 27. Nickel, the best performer, jumped 2.94%, copper rose 2.11%, aluminium advanced 1.67%, tin added 1.56% and zinc climbed 0.86%, while lead underperformed with a 0.13 loss.

Copper: The most-traded SHFE 2101 copper contract jumped 2.11% to close the day at 56,120 yuan/mt, posting a seven-day winning streak, with open interest increasing 1,671 lots to 168,000 lots. Open interest of the SHFE 2012 copper contract continued to shrink, losing 8,153 lots, while that of SHFE forward-month 2102-2105 copper contracts rose significantly by about 10,000 lots.

The minutes of the ECB's October policy meeting showed that policymakers generally agreed on the need to recalibrate monetary policy instruments in December. In addition, China’s central bank issued the third-quarter monetary policy implementation report, emphasizing the implementation of normal monetary policy as long as possible, maintaining basic stability of macro leverage ratio, improving prevention and disposal mechanism of bond default risk, which basically set a stable and loose monetary policy in the short term.

Zinc: The most-liquid SHFE 2101 zinc contract ended 0.86% higher on the day at 21,050 yuan/mt, with open interest falling 2,120 lots to 105,000 lots. Treatment charges (TCs) for imported zinc concentrate fell to $80-90/dmt amid tightened supply, while TCs for domestic zinc concentrate maintained its downward trend. Lower profits are likely to prompt smelters to expand output reduction in December. The SHFE zinc contract is expected to fluctuate around 21,000 yuan/mt tonight.

Lead: The most-traded SHFE 2101 lead contract finished the day 0.13% lower at 15,270 yuan/mt in choppy trading, posting a three-day losing streak, with open interest rising 2,377 lots to 41,019 lots.

Tin: The most-active SHFE 2101 tin contract rose 1.56% on the day to end at 148,300 yuan/mt after hitting a one-week high at 148,920 yuan/mt earlier in the session, with open interest decreasing 3,069 lots to 12,118 lots. The US dollar falling to nearly two-year low underpinned tin prices. Pressure above will be seen from 150,000 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 for 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

38 mins ago

Bank of Canada Holds Rates but Signals Possible Hikes if Inflation Persists

The Bank of Canada chose to hold steady earlier this month, but Governor Macklem immediately warned that if inflation remains persistently high, the central bank does not rule out multiple consecutive rate hikes. The Riksbank currently belongs to the dovish camp and is expected to keep its key policy rate unchanged at 1.75% at its meeting later this month, though the market currently also expects its rate to rise later this year.

38 mins ago

US Treasury Yields Surge to 16-Year Highs Ahead of Fed Rate Decision

As the US Fed is about to announce its interest rate decision, the sell-off in US Treasuries has intensified, with the benchmark 10-year Treasury yield climbing to its highest level since 2007. The 30-year Treasury yield, which is more sensitive to geopolitical risks, also continued to rise, reaching as high as 5.40% during the session, a new high since June 2007; the 2-year Treasury yield rose about 4 basis points to 4.68%.

38 mins ago

39 mins ago

Trump Administration Poised to Approve Deep-Sea Mining Permits for Critical Minerals

The Trump administration has signaled it is about to approve deep-sea mining permits, part of a broader effort to expand US access to critical minerals that are widely used across many sectors of the US economy.Interior Secretary Doug Burgum said at the G20 energy ministers' meeting in Houston that permits could be issued within months, as the administration pursues an "energy growth" strategy to expand supply chains for the US and its allies.

39 mins ago