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SMM Evening Comments (Jan 11): Nonferrous metals on the SHFE fell across the board, nickel tumbled 4.01%
Jan 11,2021 19:25CST
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Source:SMM
SHFE nonferrous metals all closed lower on Monday January 11. Nickel dived 4.01% to lead the losses, lead plunged 3.79%, zinc fell 2.82%, aluminium declined 2.66%, copper dropped 2.46% and tin shed 2.39%.

SHANGHAI, Jan 11 (SMM) – SHFE nonferrous metals all closed lower on Monday January 11. Nickel dived 4.01% to lead the losses, lead plunged 3.79%, zinc fell 2.82%, aluminium declined 2.66%, copper dropped 2.46% and tin shed 2.39%.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei increased 4,000 mt from last Friday January 8 to 154,000 mt as of Monday January 11. The stocks were up 6,400 mt from last Monday January 4.

Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin fell 2,000 mt from last Friday January 8 to 56,900 mt as of Monday January 11, an SMM surveyed showed.

Copper: The most-traded SHFE 2103 copper contract fell 2.46% to close the day at 58,670 yuan/mt, with open interest losing 9,956 lots to 103,000 lots, on worries the U.S. Federal Reserve isn’t eager to keep bolstering its balance sheet.     

House Speaker Nancy Pelosi said impeachment articles would be introduced if Trump isn’t removed by invoking of the 25th Amendment. According to data released by the US Department of Labor on Friday, the nonfarm payrolls unexpectedly decreased by 140,000 in December, which was significantly lower than the expected increase of 50,000. On Friday, Federal Reserve Vice Chair Richard Clarida said he expected that the current pace of bond purchases would remain through the end of the year. Other Fed officials have started talking about tapering those purchases later in 2021. The US dollar index returned above 90, pressuring copper prices.      

Zinc: The most-liquid SHFE 2102 zinc contract fell 2.82% to close the day at 21,020 yuan/mt, with open interest decreasing 5,685 lots to 66,218 lots. Expectations of weakening demand is likely to pressure zinc prices. But hopes for more stimulus from the US are likely to boost market sentiment. The contract may test support from the 60-day moving average tonight.

Nickel: The most-active SHFE 2103 nickel contract tumbled 4.01% to settle the day at 127,490 yuan/mt, with open interest falling sharply by 14,022 lots to 170,195 lots, after the US Federal Reserve said in its meeting minutes that "after the employment and price targets are reached, the Fed will gradually withdraw from easing as it did in 13-14." In terms of fundamentals, inventories of refined nickel continued to fall amid stable consumption. Stainless steel was also in short supply in domestic spot market. Support below will be seen from 117,000 yuan/mt tonight.

Lead: The most-liquid SHFE 2102 lead contract plunged 3.79% to end the day at 14,470 yuan/mt after hitting a nearly three-week low at 14,350 yuan/mt earlier in the session, with open interest rising 1,105 lots to 29,549 lots. Whether the contract could return above 14,500 yuan/mt tonight will be monitored.

Tin: The most-traded SHFE 2103 tin contract declined 2.39% to finish the day at 153,770 yuan/mt, with open interest decreasing 4,891 lots to 33,895 lots.  A US dollar rebound and falling LME tin weighed on SHFE tin prices. The contract will test support from 153,000 yuan/mt tonight.

Copper
Aluminium
Lead
Tin
Nickel
Zinc

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