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SMM Evening Comments (Jan 28): Nonferrous metals on the SHFE fell across the board as dollar extended gains
Jan 28,2021 18:48CST
price review forecast
Source:SMM
SHFE nonferrous metals all closed lower on Thursday January 28. Copper shed 1.8%, aluminium edged down 0.4%, zinc weakened 1.76%, lead slid 0.93%, nickel pulled back 2% and tin declined 0.48%.

SHANGHAI, Jan 28 (SMM) – SHFE nonferrous metals all closed lower on Thursday January 28. Copper shed 1.8%, aluminium edged down 0.4%, zinc weakened 1.76%, lead slid 0.93%, nickel pulled back 2% and tin declined 0.48%.

SMM data showed that aluminium billet stocks across the five major consumption areas — Foshan, Wuxi, Huzhou, Changzhou and Nanchang — in China built up 16,400 mt from a week ago to 100,700 mt as of Thursday January 28.

Social inventories of primary aluminium ingots across eight consumption areas in China, including SHFE warrants, increased 13,000 mt from last Thursday to 682,000 mt as of January 28.

Copper: The most-traded SHFE 2103 copper contract declined 1.8% to finish the day at 57,760 yuan/mt, with open interest rising 3,930 lots to 126,000 lots. Open interest of the February copper contract lost 9,053 lots to 21,152 lots.

Federal Reserve Chair Jerome Powell made clear the US central bank was nowhere near exiting massive support for the economy during the ongoing coronavirus pandemic, as officials left their benchmark interest rate unchanged near zero and flagged a moderating US recovery.

The dollar extended gains against most currencies on Thursday as a stock market rout due to concerns about excessive valuations boosted safe-harbor demand for the US currency. Concerns about a short-squeeze among hedge funds, worries about corporate earnings, and delays in coronavirus vaccinations have slammed the brakes on a heady rally in global equities, which could continue to lift the dollar in the short term.

Aluminium: The most-liquid SHFE 2103 aluminium contract slipped 0.4% to end the day at 14,815 yuan/mt, with open interest decreasing 4,919 lots to 165,000 lots.

Zinc: The most-active SHFE 2103 zinc contract fell to an intraday low of 19,325 yuan/mt before regaining some ground to close the day 1.76% lower at 19,515 yuan/mt, with open interest rising 1,957 lots to 103,381 lots. Losses at zinc smelters expanded recently, and whether more smelters would conduct maintenance will be monitored.

Nickel: The most-traded SHFE 2104 nickel contract shed 2% to finish the day at 131,280 yuan/mt after hitting a two-week low at 130,600 yuan/mt earlier in the session, with open interest rising 6,787 lots to 117,000 lots.

Lead: The most-liquid SHFE 2103 lead contract ended the day 0.93% lower at 15,380 yuan/mt, with open interest decreasing 3,556 lots to 41,493 lots. Downstream users have recently completed pre-holiday restocking, and this pressured SHFE lead. Whether the contract could steady above the five-day moving average tonight will be watched.

Tin: The most-traded SHFE 2103 tin contract slid 0.48% to finish the day at 170,920 yuan/mt, with open interest losing 1,210 lots to 29,166 lots.

Copper
Lead
Tin
Zinc
Aluminium
Nickel

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