SMM Evening Comments (Jan 14): Nonferrous metals on the SHFE fell for the most part, Zinc shed 1.85%

Published: Jan 14, 2021 19:04 (GMT+8)
SHFE nonferrous metals were mostly lower on Thursday January 14. Copper shed 0.17%, aluminium weakened 0.4%, zinc fell 1.85% and tin edged down 0.01%, while lead rose 1.81% and nickel gained 1.37%.

SHANGHAI, Jan 14 (SMM) – SHFE nonferrous metals were mostly lower on Thursday January 14. Copper shed 0.17%, aluminium weakened 0.4%, zinc fell 1.85% and tin edged down 0.01%, while lead rose 1.81% and nickel gained 1.37%.

SMM data showed that aluminium billet stocks across the five major consumption areas — Foshan, Wuxi, Huzhou, Changzhou and Nanchang — in China fell 3,000 mt from a week ago to 82,700 mt as of Thursday January 14.

Social inventories of primary aluminium ingots across eight consumption areas in China, including SHFE warrants, increased 20,000 mt from last Thursday to 684,000 mt as of January 14.

Copper: The most-traded SHFE 2103 copper contract closed the day 0.17% lower at 58,740 yuan/mt, with open interest rising 1,402 lots to 115,000 lots. Whether the contract could break above 59,000 yuan/mt tonight will be watched.

The dollar extended its rebound from near three-year lows versus major peers on Thursday, supported by higher U.S. yields, as President-elect Joe Biden prepared to outline his plans for massive fiscal stimulus.

China’s exports rose 18.1% in December as compared with a year earlier, according to customs data released Thursday. Meanwhile, China’s imports grew 6.5% year-on-year in December.

Oil prices eased for a second day on Thursday as mounting coronavirus cases globally raised demand concerns, although a drawdown in U.S. crude stocks for a fifth straight week and robust data from China capped losses.

Zinc: The most-liquid SHFE 2102 zinc contract finished the day 1.85% lower at 20,420 yuan/mt after hitting a new low in 2021 at 20,410 yuan/mt earlier in the session, with open interest decreasing 3,095 lots to 55,974 lots. The continued spread of COVID-19 at home and overseas, US dollar rebound and weakening demand pressured zinc prices.

Nickel: The most-active SHFE 2103 nickel contract ended the day 1.37% higher at 132,150 yuan/mt, with open interest rising 15,618 lots to 198,042 lots, and is likely to rise to 134,500 yuan/mt in the near future.

Lead: The most-traded SHFE 2103 lead contract closed the day 1.81% higher at 14,910 yuan/mt, with open interest rising 932 lots to 30,265 lots. The buildup of lead inventories is expected to slow down amid expectations of downstream pre-holiday stockpiling. Whether the contract could maintain its upward trend tonight will be monitored.

Tin: The most-active SHFE 2103 tin contract edged down 0.01% to end at 153,470 yuan/mt, and is expected to move between 152,000-155,000 yuan/mt tonight.

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
SMM Weekly Operating Rate of Secondary Anode Plate Enterprises in China at 46.43%
13 hours ago
SMM Weekly Operating Rate of Secondary Anode Plate Enterprises in China at 46.43%
Read More
SMM Weekly Operating Rate of Secondary Anode Plate Enterprises in China at 46.43%
SMM Weekly Operating Rate of Secondary Anode Plate Enterprises in China at 46.43%
[SMM Copper Anode Market] Affected by the National Day holiday, the SMM weekly operating rate of secondary anode plate enterprises in China fell 5.17 percentage points WoW to 46.43% during Oct. 2-8. It is expected to rebound 9.73 percentage points WoW to 56.16% next week.
13 hours ago
Shanghai Chucheng International Trade Co., Ltd. Shines at SME 2026 Shanghai Metal Week
16 hours ago
Shanghai Chucheng International Trade Co., Ltd. Shines at SME 2026 Shanghai Metal Week
Read More
Shanghai Chucheng International Trade Co., Ltd. Shines at SME 2026 Shanghai Metal Week
Shanghai Chucheng International Trade Co., Ltd. Shines at SME 2026 Shanghai Metal Week
16 hours ago
Codelco Investigates Possible Duplicate Production Accounting at Ministro Hales and Salvador
16 hours ago
Codelco Investigates Possible Duplicate Production Accounting at Ministro Hales and Salvador
Read More
Codelco Investigates Possible Duplicate Production Accounting at Ministro Hales and Salvador
Codelco Investigates Possible Duplicate Production Accounting at Ministro Hales and Salvador
Codelco said on October 6 that it is investigating possible duplicate accounting of production at its Ministro Hales and Salvador divisions during 2024 and 2025. Based on preliminary information, the same material may have been recorded as production by more than one division, potentially inflating the company’s reported production and inventory figures. Codelco has referred the findings to Chile’s Public Prosecutor’s Office and commissioned EY to conduct an independent external audit into the case. KPMG will continue its broader review of Codelco’s production reports for 2024–2025. An earlier internal audit found that material still requiring further processing had been reported as finished copper production at Chuquicamata and Ministro Hales in 2025, involving approximately 26,875 tonnes of copper. The company subsequently dismissed one executive and imposed disciplinary measures on other employees. The latest investigation could further affect market assessments of Codelco’s historical production data, but no revision to reported output has been confirmed. Codelco has also abolished the vice-president position responsible for the joint Andina–Los Bronces operating plan and appointed Claudia Monreal López to lead a new coordination team from October 27.
16 hours ago