SMM Evening Comments (Feb 9): Shanghai nonferrous metals closed mostly higher, tin fell 1.63%

Published: Feb 9, 2021 18:00
SHFE nonferrous metals rose for the most part on Tuesday February 9 due to strong earnings and improving data on the Covid-19 and vaccination front.

SHANGHAI, Feb 9 (SMM) – SHFE nonferrous metals rose for the most part on Tuesday February 9 due to strong earnings and improving data on the Covid-19 and vaccination front.

Copper, the best performer, rose 1.67%, zinc advanced 0.62%, lead went up 0.53%, Aluminium climbed 1.21% and nickel gained 1.47%, while tin dropped 1.63%.

The ferrous complex rose across the board. Iron ore surged 4.27%, rebar rose 2.31%, and hot-rolled coil climbed 2.4%.

Copper: The most-traded SHFE 2103 copper contract finished the day 1.67% higher at 59,570 yuan/mt. Open interest fell 3,254 lots to 90,464 lots.

The president of Richmond Fed is not worried about the inflation risk brought by the stimulus plan. Goldman Sachs raised the expected size of the US stimulus bill to US$ 1.5 trillion, and raised the expected growth rate of US GDP to 6.8% and 4.5% this year and next respectively. Cleveland Fed President said that the popularisation of vaccination will accelerate the economic recovery, the market sentiment is unprecedentedly positive, the global capital market is generally rising, and A shares are up by more than 2%.

Germany seasonally-unadjusted trade account in December, the trend of the US stimulus bill and whether the contract can show an upward market trend on the last trading day before the CNY tomorrow will come under scrutiny tonight.

Aluminium: The most-liquid SHFE 2103 aluminium contract finished the day 1.21% higher at 15,865 yuan/mt. Open interest fell 12,830 lots to 158,397 lots. The short-term higher prices were related to the expected change of accumulated stocks. At present, the enthusiasm of long positions to enter the market is ahead of schedule, and the increase of open interest is concentrated in the 2104 and 2105 contract, which reflects the expectation that the supply and demand of aluminum ingots will be high in April-May after the CNY holiday. The basis between the 2103 and 2104 contract has narrowed to 20 yuan/mt, and the 2104 contract strengthened, which once again verifies the expectation of funds on market preference after the holiday. Pre-holiday consumption shrank, and the demand for capital hedging should continue to be monitored.

Zinc: The most-active SHFE 2103 zinc contract closed up 0.62% at 20,180 yuan/mt. Open interest rose 5,172 lots to 76,234 lots.

Nickel: The most-traded SHFE 2104 nickel contract ended the day 1.47% higher at 135,250 yuan/mt today. Open interest rose 11,372 lots to 169,583 lots.

Lead: The most-traded SHFE 2103 lead contract rose to an intraday high of 15,305 yuan/mt and ended the day 0.53% higher at 15,190 yuan/mt. Open interest fell 1,354 lots to 26,626 lots. The market is optimistic about the post-holiday economic recovery and industrial production demand. The contract fluctuated within a narrow range in this atmosphere and stood on the 10-day moving average. Whether the contract could remain above 10-day moving average will be monitored tonight.

Tin: The most-liquid SHFE 2104 tin contract fell to a session low of 162,330 yuan/mt and finished the day 1.68% lower at 163,460 yuan/mt today. Open interest fell 1,563 lots to 34,457 lots. The guidance of LME tin on the trend of the contract will be monitored. It is expected that the contract will keep fluctuating in the near term. Pressure above will be seen from 167,500 yuan/mt today. Support below will be seen from 162,000 yuan/mt today.

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
Copper Prices Edge Lower Before Fed Decision, Aluminium Rises on Supply Fears
5 hours ago
Copper Prices Edge Lower Before Fed Decision, Aluminium Rises on Supply Fears
Read More
Copper Prices Edge Lower Before Fed Decision, Aluminium Rises on Supply Fears
Copper Prices Edge Lower Before Fed Decision, Aluminium Rises on Supply Fears
Copper prices edged lower on Wednesday as investors remained cautious ahead of the U.S. Federal Reserve's interest rate decision, while signs of easing supply tightness in China, the world's largest copper consumer, also weighed on sentiment. In contrast, aluminium prices gained support as renewed fighting in the Middle East raised concerns over potential supply disruptions. Benchmark three-month copper on the London Metal Exchange (LME) fell 0.4% to $13,631 per metric ton by 1002 GMT, although the contract remained above its 50-day moving average of $13,576, a key technical support level watched by traders. The U.S. dollar hovered near one-month highs as market participants awaited the Fed's policy announcement for further guidance on the interest rate outlook. A stronger dollar typically makes dollar-denominated metals more expensive for buyers using other currencies, which can weigh on demand. Markets were pricing in roughly a 30% probability of a 25-basis-point interest rate increase, contributing to subdued trading activity across base metals.
5 hours ago
Zambia Advocates for Pan-African Minerals Exchange to Boost Resource Value and Control
6 hours ago
Zambia Advocates for Pan-African Minerals Exchange to Boost Resource Value and Control
Read More
Zambia Advocates for Pan-African Minerals Exchange to Boost Resource Value and Control
Zambia Advocates for Pan-African Minerals Exchange to Boost Resource Value and Control
Zambia is advocating for the establishment of a pan-African minerals and metals exchange as part of a broader strategy to increase the value African countries derive from their mineral resources and strengthen regional control over mineral trading. The proposal seeks to create a continental platform that would give African producers a greater role in mineral marketing while promoting downstream industries such as refining, manufacturing and value addition. According to foreign media reports, Presidential Adviser on Finance and Investment Jito Kayumba said the initiative reflects growing demand for African countries to benefit more directly from their natural resources and reduce reliance on exporting raw minerals. The proposed exchange builds on Zambia's existing metals trading partnership with Mercuria and has already been discussed with the Democratic Republic of Congo (DRC) and two other African countries. Officials believe stronger regional trading mechanisms could also support the Zambia-DRC electric vehicle battery value chain initiative by improving access to locally produced copper and cobalt, which are largely supplied by privately owned mining companies. The initiative underscores Africa's broader push to capture a larger share of the global critical minerals value chain as demand for copper, cobalt and battery materials continues to grow. If implemented, a pan-African exchange could improve regional price discovery, strengthen Africa's negotiating position in international mineral markets, encourage investment in refining and manufacturing, and support the development of integrated supply chains. While the proposal remains at an early stage, it signals increasing momentum behind policies aimed at expanding mineral value addition and resource sovereignty across the continent.
6 hours ago
Western Mining Co. Reports 164,000 mt Copper Output in 2026 Semi-Annual, Boosts Efficiency and Profitability
10 hours ago
Western Mining Co. Reports 164,000 mt Copper Output in 2026 Semi-Annual, Boosts Efficiency and Profitability
Read More
Western Mining Co. Reports 164,000 mt Copper Output in 2026 Semi-Annual, Boosts Efficiency and Profitability
Western Mining Co. Reports 164,000 mt Copper Output in 2026 Semi-Annual, Boosts Efficiency and Profitability
Western Mining Co., Ltd. 2026 Semi-Annual Report: The company's copper smelting producers are Qinghai Copper and Western Copper Semis. Qinghai Copper employs the world's most advanced and competitive "double bottom blowing" copper smelting process, optimizing economic efficiency by further improving comprehensive recovery indicators. Its current smelting copper capacity is 200,000 mt/year. Western Copper Semis has a smelting copper capacity of 100,000 mt/year, continuously strengthening supply and sales management, enhancing product quality, and boosting profitability. During the reporting period, the company produced a total of 164,000 mt of smelting copper and by-produced 270,000 mt of sulphuric acid.
10 hours ago
SMM Evening Comments (Feb 9): Shanghai nonferrous metals closed mostly higher, tin fell 1.63% - Shanghai Metals Market (SMM)