SMM Evening Comments (Dec 7): Shanghai nonferrous metals ended mixed, nickel rose 2.91%

Published: Dec 7, 2020 18:00

Save

SHFE nonferrous metals closed mixed on Monday November 7. Investor sentiment improved last week around coronavirus vaccine rollouts and U.S. stimulus hopes, which fueled a record-setting session Friday on Wall Street.

SHANGHAI, Dec 7 (SMM) – SHFE nonferrous metals closed mixed on Monday December 7. Investor sentiment improved last week around coronavirus vaccine rollouts and U.S. stimulus hopes, which fueled a record-setting session Friday on Wall Street.

Nickel, the best performer, rose 2.91%, zinc advanced 0.41% and tin climbed 1.3%, while aluminium edged down 0.65%, lead weakened 1.24% and copper shed 0.26%.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 1,600 mt from last Friday December 4 to 165,100 mt as of Monday December 7. The stocks were down 5,700 mt from last Monday November 30.

The ferrous complex rose across the board. Iron ore increased 1.57%, rebar rose 2.55%, and hot-rolled coil climbed 2.12%.

Copper: The most-traded SHFE 2101 copper contract finished the day 0.26% lower at 57,030 yuan/mt. Open interest fell 7,440 lots to 121,000 lots.

November Non-farm payrolls only increased 245,000, far below the median estimate of 460,000 by economists. The number of unemployed people increased with the second outbreak of the pandemic, and the COVID-19 hit the employment situation obviously. The overall situation remained grim. However, the negotiation of the fiscal stimulus plan between the two parties in the US is gaining momentum, but there are still differences on the specific details, and the market remains optimistic to a certain extent, hoping for the upcoming bill. In addition, the vaccine developed by Pfizer Pharmaceuticals will be put on the market soon, which will slow down the pessimism in the market. The US dollar index is still on the downward track, fluctuating around 90.6, so support below of copper prices is seen from 57,000 yuan/mt.

The trend of LME copper, China's foreign exchange reserves, Balance of trade for November and whether the contract could remain above 57,000 yuan /mt and five-day moving average will come under scrutiny tonight.

Aluminium: The most-liquid SHFE 2101 aluminium contract finished the day 0.65% lower at 16,075 yuan/mt. Open interest fell 7,061 lots to 134,820 lots.

Zinc: The most-active SHFE 2101 zinc contract climbed to an intraday high of 21,060 yuan/mt and closed up 0.41% at 21,045 yuan/mt. Open interest fell 1,119 lots to 86,698 lots. Zinc inventories in China fell over the weekend, primarily propelled by a decrease in Shanghai and Guangdong.

Nickel: The most-traded SHFE 2102 nickel contract ended the day 2.91% higher at 120,990 yuan/mt today. Open interest rose 3,763 lots to 147,241 lots. SHFE nickel is expected to trade between 116000-121000 yuan/mt this week. LME nickel is expected to trade between $15800-16350/mt this week.

Lead: The most-traded SHFE 2101 lead contract fell to an intraday low of 14,705 yuan/mt after opening and ended the day 1.24% lower at 14,755 yuan/mt. Open interest rose 1,377 lots to 35,154 lots. Although the spot market discount narrowed slightly, the downstream trading only improved in some areas, and still did not get out of the trend of weak fundamentals. Prices of battery scrap fell, and the support of the cost of secondary lead moved downward. Whether the contract could move above 14,700 yuan/mt will be monitored tonight.

Tin: The most-liquid SHFE 2102 tin contract climbed to a session high of 148,980 yuan/mt and finished the day 0.59% higher at 148,820 yuan/mt today. Open interest rose 611 lots to 28,565 lots. Driven by the weak US dollar and the rise of LME tin, the contract is expected to test pressure from 150,000 yuan/mt. It is expected to trade robustly in the near term.

Evening comments 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.

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

16 hours ago

Yingkou Jianfa Shenghai Phase I 300,000 mt Copper Cathode Project Smelting Furnace Starts Production, Pyrometallurgy System Enters Furnace Drying Stage

At 9:58 on September 12, the core smelting furnace of the pyrometallurgy system at Yingkou Jianfa Shenghai Nonferrous Metals & Chemicals Co., Ltd.'s multi-metal recovery project was successfully ignited, officially entering the furnace drying stage and marking a key step toward full-line commissioning and production. Public information shows that the Yingkou Jianfa Shenghai polymetallic complex gold-silver ore comprehensive recovery technology upgrade, relocation, and expansion project uses copper concentrates as its main raw material, with an overall planned capacity of 600,000 mt/year of copper cathode to be built in two phases, with capacity of 300,000 mt/year in each phase. Phase I is designed to produce 300,000 mt/year of copper cathode and 1.18 million mt/year of sulphuric acid, along with supporting systems for smelting, converting, anode refining, electrolysis, slag beneficiation, and precious metal recovery. After this ignition, the project will carry out standardized furnace drying and hot-state integrated trial runs across the entire system to verify equipment, instruments, interlocks, and automatic control systems. The project has not yet formally started raw material feeding and production; after furnace drying and system commissioning are completed, it will further advance the commissioning of Phase I's 300,000 mt/year copper cathode capacity. If the project is successfully brought into production, it is expected to increase copper smelting capacity in North China and further boost domestic demand for copper concentrate raw materials.

16 hours ago

Sep 12, 2026 01:13

Alchemy Resources Starts Drilling Copper-Gold Targets at Yellow Mountain

Alchemy Resources announced on September 11 that reverse-circulation drilling has commenced across its Yellow Mountain and Overflow projects in New South Wales, Australia, with up to 15 holes planned during the latest exploration campaign. At the 80%-owned Yellow Mountain project, drilling will test extensions to previously identified copper-gold and polymetallic mineralisation, as well as two previously undrilled geophysical targets. Previous drilling at Yellow Mountain returned an intersection of 113 metres grading 1.17% copper equivalent, comprising 0.33% copper, 0.37 g/t gold, 24.3 g/t silver, 0.86% lead and 1.23% zinc. The latest drilling campaign is designed to test whether the known mineralised system extends into newly identified target areas. The program will also include drilling at the Overflow project, where Alchemy is targeting extensions to existing mineralisation along strike and at depth. Overflow currently hosts an inferred mineral resource of approximately 342,000 ounces of gold equivalent and contains gold, silver, copper, lead and zinc mineralisation. The commencement of drilling provides a near-term test of the scale and continuity of mineralisation at Yellow Mountain. The previously reported broad copper-gold-polymetallic intersection indicates potential for a sizeable mineralised system, while the newly defined geophysical targets provide additional exploration upside. Drilling results will be important in determining whether the mineralised footprint can be materially expanded.

Sep 12, 2026 01:13

Sep 12, 2026 01:10

Freeport CEO Signals Likely Go-Ahead for $4.5 Billion Bagdad Copper Expansion

Freeport-McMoRan Chief Executive Officer Kathleen Quirk has indicated that the company expects to move forward with the proposed expansion of its Bagdad copper mine in Arizona, marking a stronger commitment to the project ahead of a formal investment decision. Speaking at the Jefferies Global Industrials Conference on September 10, Quirk said the project still requires input from Freeport's board but that she expects the company will proceed. She described the expansion as a roughly three-year construction project and noted that no major permitting hurdles are expected. Freeport's latest project estimates put capital expenditure for the Bagdad expansion at approximately US$4.5 billion, around 30% above the previous US$3.5 billion estimate, reflecting cost escalation, scope changes and additional engineering. The project would more than double concentrator capacity at Bagdad and is expected to add approximately 200–250 million lb, or around 91,000–113,000 tonnes, of copper production annually, alongside an additional 10–12 million lb of molybdenum. Bagdad currently has a reserve life exceeding 80 years. Freeport's Q2 2026 regulatory filing had described the project as being prepared for a potential investment decision during the second half of 2026. The latest comments therefore represent a more positive signal from management on the likelihood of development, although formal board approval has not yet been announced. A decision to proceed with Bagdad would represent one of Freeport's most significant near-term copper growth investments in the US. The potential addition of more than 90,000 tonnes per year of copper would materially increase Freeport's US output, although first production would remain several years away given the expected construction period. Attention will now turn to formal board approval and a final investment decision.

Sep 12, 2026 01:10