SHANGHAI, Jan 20 (SMM) – Shanghai base metals rose broadly on Wednesday January 20. Copper and zinc added 0.34%, lead rose 1.58%, nickel gained 0.14% and tin climbed 0.24%.
Copper: The most-active SHFE 2103 copper contract advanced 0.34% to finish the day at 59,120 yuan/mt, with trading volume rising 34,000 lots to 135,000 lots.
President-elect Joe Biden will on Wednesday deliver an inauguration speech centered on unity as the United States faces one of its most chaotic transfers of power in the modern era. Biden, who departed for Washington on Tuesday afternoon, will speak about the need to bring the country together on the heels of a violent riot on Capitol Hill and amid extreme partisanship in Congress, according to the president-elect’s advisors.
Janet Yellen, U.S. President-elect Joe Biden's nominee for Treasury Secretary, urged Senate lawmakers at her confirmation hearing on Tuesday to take “big moves” to stimulate the economy. After Yellen mentioned that she would study the possibility of issuing 50-year Treasury bonds, traders sold 30-year Treasury bonds. The market was optimistic about a new round of US economic stimulus bills. The US dollar index dipped to around 90.35, which lent support to copper prices.
Whether the March copper contract could steady above 59,000 yuan/mt tonight will be monitored.
Aluminium: The most-traded SHFE 2103 aluminium contract shed 0.13% to close the day at 14,805 yuan/mt. Inventories of aluminium ingots are likely to continue to rise as consumption has weakened as it approaches the Chinese New Year holiday.
Zinc: The most-liquid SHFE 2103 zinc contract fell sharply to an intraday low of 20,815 yuan/mt before rebounding rapidly to an intraday high of 20,460 yuan/mt. It ended the day 0.34% higher at 20,385 yuan/mt, with open interest rising 592 lots to 91,593 lots. Inventories of zinc ingots did not accumulate, easing pessimistic outlook on zinc consumption.
Nickel: The most-active SHFE 2103 nickel contract ended the day 0.14% firmer at 134,020 yuan/mt, and may test support from the 10-day moving average.
Lead: The most-liquid SHFE 2103 lead contract closed the day 1.58% higher at 15,130 yuan/mt, after hitting a more than one-week high at 15,150 yuan/mt earlier in the session, with open interest increasing 2,380 lots to 38,274 lots. Higher logistics costs amid the COVID-19 pandemic and relatively few spot cargoes circulating in the market prompted sellers to hold prices firm. However, as some downstream users complete pre-holiday restocking and lead-acid battery makers start the Chinese New Year holiday, trades are likely to mute.
Tin: The most-traded SHFE 2103 tin contract gained 0.24% to finish the day at 157,870 yuan/mt.