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

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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

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