SHANGHAI, Jan 6 (SMM) – Shanghai base metals rose for the most part on Wednesday. Zinc, the best performer, advanced 1.64% to lead the gains, copper increased 1.62%, tin added 0.74%, nickel gained 0.39% and lead edged up 0.03%, while aluminium shed 0.36%.
Copper: The most-traded SHFE 2102 copper contract finished the day 1.62% higher at 59,030 yuan/mt after hitting a more than two-week high at 59,280 yuan/mt earlier in the session, with open interest rising 1,401 lots to 98,000 lots.
Saudi Arabia, the world’s biggest oil exporter, agreed on Tuesday to make additional, voluntary oil output cuts of 1 million barrels per day (bpd) in February and March, after a meeting with the Organization of the Petroleum Exporting Countries (OPEC) and other major producers that form the group known as OPEC+. The US dollar index continued to hover around 89.5, boosting copper prices. A clear outcome in Georgia could arrive as soon as Wednesday morning in the United States, although the tightness of the count suggests it may take longer. The latest results put the Democrats a fraction ahead in one of the two Senate races and the two challengers neck-and-neck in the other.
US ADP employment for December and inventory data from the US Energy Information Administration (EIA) will be monitored tonight.
Zinc: The most-liquid SHFE 2102 zinc contract advanced 1.64% to close the day at 21,375 yuan/mt, with open interest decreasing 2,685 lots to 73,690 lots. Currently, zinc stocks in Ningbo, Shanghai and Guangdong were low, and spot premiums were relatively high, which lent support to zinc prices.
Nickel: The most-traded SHFE 2103 nickel contract ended the day 0.39% higher at 129,470 yuan/mt after hitting a two-week high at 130,740 yuan/mt earlier in the session.
Lead: The most-active SHFE 2102 lead contract edged up 0.03% to end the day at 15,035 yuan/mt, with open interest losing 588 lots to 27,191 lots.
Tin: The most-traded SHFE 2103 tin contract gained 0.74% to finish the day at 158,690 yuan/mt, with open interest rising 384 lots to 40,471 lots. It is expected to move between 155,000-160,000 yuan/mt tonight.