SHANGHAI, Jan 8 (SMM) – SHFE nonferrous metals increased broadly on Friday January 8. Copper advanced 1.91% to lead the gains, aluminium added 0.23%, zinc firmed 0.63%, nickel strengthened 0.83% and tin gained 0.22%, while lead shed 0.47%.
Copper: The most-traded SHFE 2103 copper contract rose 1.91% to end the day at 60,420 yuan/mt, with open interest rising 12,017 lots to 113,000 lots.
President Donald Trump on Thursday admitted, for the first time in his own words, that President-elect Joe Biden’s administration would take charge on Jan. 20. Trump, who had repeatedly vowed never to concede to Biden, backed dozens of fruitless lawsuits and flooded his Twitter account with baseless claims of voter fraud.
His refusal to accept the election results culminated in a deadly riot on Wednesday, when swarms of his supporters stormed the U.S. Capitol and derailed congressional proceedings to tally electors’ votes and confirm Biden’s win. Expectations of more fiscal stimulus boosted copper prices. US ISM non-manufacturing PMI stood at 57.2 in December, registering a new high since September 2020. US initial claims for unemployment benefits remained high in the last week of 2020, suggesting a negative impact of the COVID-19 pandemic on the labour market.
US adjusted non-farm employment for December set for release tonight will be monitored. Whether the copper contract could steady above the 60,000 mark will also be watched.
Zinc: The most-liquid SHFE 2102 zinc contract closed the day 0.63% higher at 21,620 yuan/mt after hitting a nearly two-week high at 21,780 yuan/mt earlier in the session, with open interest decreasing 1,022 lots to 71,903 lots. Zinc consumption continued to weak as a resurgence of COVID-19 cases in north China resulted in transport restrictions, which is expected to pressure zinc prices.
Nickel: The most-traded SHFE 2103 nickel contract ended the day 0.83% higher at 132,490 yuan/mt.
Lead: The most-active SHFE 2102 lead contract shed 0.47% to finish the day at 14,750 yuan/mt, with open interest rising 917 lots to 28,444 lots.
Tin: The most-traded SHFE 2103 tin contract added 0.22% to settle the day at 158,650 yuan/mt, with open interest decreasing 3,175 lots to 38,786 lots. It is expected to move between 155,000-160,000 yuan/mt tonight.