SHANGHAI, Jan 126 (SMM) – SHFE nonferrous metals weakened broadly on Tuesday January 26. Copper slid 0.61%, aluminium shed 0.77%, zinc declined 1.5% and nickel pulled back 0.62%, while lead added 0.23% and tin rose 1.99%.
SMM data showed that a total of 95 vessels carrying 15.38 million mt of iron ore arrived at major Chinese ports during January 17-23, SMM estimates. This was down 4.08 million mt from the prior week but up 3.3 million mt from the same period last year.
Copper: The most-traded SHFE 2103 copper contract trended lower today, losing 0.61% to close the day at 58,470 yuan/mt. Open interest of the February contract decreased sharply by 5,961 lots.
President Biden said negotiations around his $1.9 trillion coronavirus relief plan will take a “couple of weeks,” and then Democrats will decide whether to pass it on their own.
Sixteen bipartisan senators discussed the aid plan with Biden administration officials on Sunday, and while the lawmakers agreed on the need for vaccine distribution money, many questioned the overall price tag.
Senate Majority Leader Chuck Schumer said he is open to using the budget reconciliation process that would allow Democrats to pass legislation with a majority vote.
Whether the March copper contract could steady above 58,500 yuan/mt tonight will be monitored.
Aluminium: The most-active SHFE 2103 aluminium contract finished the day 0.77% lower at 14,845 yuan/mt, with open interest rising 4,789 lots to 165,000 lots. Expectations of weakening downstream consumption are likely to pressure aluminium prices. The March contract is expected to move between 14,650-15,000 yuan/mt tonight.
Zinc: The most-liquid SHFE 2103 zinc contract ended the day 1.5% lower at 20,005 yuan/mt, with open interest adding 473 lots to 92,591 lots. Rising COVID-19 cases in China and expectations of weaker pre-holiday consumption weighed on zinc prices.
Nickel: The most-active SHFE 2103 nickel contract shed 0.62% to close the day at 134,000 yuan/mt.
Lead: The most-traded SHFE 2103 lead contract added 0.23% to finish the day at 15,430 yuan/mt, with open interest decreasing 2,403 lots to 45,623 lots. Lead consumption has weakened recently as downstream users have gradually completed pre-holiday restocking. Lead social inventories are expected to fall at a slower pace this week.
Tin: The most-active SHFE 2103 tin contract registered a new high at 173,070 yuan/mt before giving up some gains to close the day 1.99% higher at 170,490 yuan/mt.