SMM Morning Comments (Feb 10): Base metals on SHFE were mostly higher as the US dollar fell to two-week low

Published: Feb 10, 2021 10:27
Nonferrous metals on the SHFE rose broadly on Wednesday morning, while their LME counterparts set for a mixed start, as the dollar fell to two-week lows on Tuesday in choppy trading.

SHANGHAI, Feb 10 (SMM) — Nonferrous metals on the SHFE rose broadly on Wednesday morning, while their LME counterparts set for a mixed start, as the dollar fell to two-week lows on Tuesday in choppy trading.

Shanghai base metals rose for the most part in overnight trading. Copper added 0.32%, zinc rose 1%, nickel advanced 0.29%, lead firmed 0.46% and tin increased 1.27%, while aluminium shed 0.5%. 

The LME complex, except for lead, also cruised higher on Tuesday. Copper rose 1.03%, aluminium advanced 1.7%, zinc jumped 2.36%, nickel firmed 1.02% and tin gained 1%, while lead edged down 0.05%. 

Copper: Three-month LME copper rose 1.03% to close at $8,157/mt on Tuesday, While the most-traded SHFE 2103 copper contract added 0.32% to end at 59,760 yuan/mt in overnight trading.

US crude inventory plunged 3.5 million barrels in the week ended February 5, according to the American Petroleum Institute (API). The larger-than-expected decline lifted oil prices. The dollar fell to two-week lows on Tuesday in choppy trading as risk sentiment improved in the afternoon session amid stock market gains and as US Treasury yields rose. LME copper is expected to trade between $8,120-8,200/mt today, and SHFE copper between 59,500-60,000 yuan/mt, while spot premiums will be seen at 10-80 yuan/mt.

Aluminium: Three-month LME aluminium advanced 1.7% to close at $2,061.5/mt on Tuesday, with open interest adding 4,006 lots to 725,000 lots.

The most-traded SHFE 2103 aluminium contract settled 0.5% lower at 15,785 yuan/mt in overnight trading, with open interest decreasing 1,852 lots to 157,000 lots. It is expected to move between 15,400-15,900 yuan/mt today.

Zinc: Three-month LME zinc jumped 2.36% to end at an intraday high of $2,706.5/mt on Tuesday, with open interest rising 2,470 lots to 231,000 lots. Zinc stocks across LME-listed warehouses dropped by 400 mt or 0.14% to 289,325 mt. Optimism over economic recovery, expectations that the US Congress is likely to pass Joe Biden's $1.9 trillion Covid-19 relief package and a sliding US dollar index boosted zinc prices. LME zinc is likely to move between $2,660-2,710/mt today.

The most-liquid SHFE 2103 zinc contract firmed 1% to settle at 20,245 yuan/mt in overnight trading after hitting a two-week high at 20,340 yuan/mt earlier in the session, with open interest losing 2,907 lots to 73,327 lots. Enterprises are likely to resume production earlier than previous year as employees are encouraged to stay where they work for the Spring Festival in order to reduce the possibility of being infected with COVID-19, and optimism over post-holiday demand from the infrastructure sector also bolstered zinc prices. The March contract is likely to move between 198,00-20,300 yuan/mt today, while spot premiums for domestic 0# Shuangyan will be seen at 30 yuan/mt against the contract.

Nickel: The most-active SHFE 2104 nickel contract closed 0.29% higher at 134,760 yuan/mt in overnight trading, with open interest losing 4,954 lots to 165,000 lots.

Lead: Three-month LME lead edged down 0.05% to end at $2,073/mt on Tuesday, after earlier registering a new high in 2021 of $2,099/mt. LME lead stocks shrank by 400 mt to 92,850 mt. 

The most-liquid SHFE 2103 lead contract climbed to a nearly two-week high of 15,485 yuan/mt in overnight trading before paring some gains to settle 0.46% higher at 15,325 yuan/mt.

Tin: Three-month LME tin gained 1% to close at an intraday high of $23,200/mt. LME tin stocks further declined to 775 mt, which is expected to lend support to tin prices in the short term. LME tin is expected to trade between $22,500-24,000/mt today.

The most-liquid SHFE 2104 tin contract increased 1.27% to end at 165,530 yuan/mt in overnight trading, with open interest losing 2,100 lots to 32,357 lots. It is likely to move between 162,000-167,000 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 to learn 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
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
Feb 6, 2026 23:56
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
Read More
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"
Premier Li Qiang presided over an executive meeting of the State Council to study policy measures for promoting effective investment. The meeting noted that promoting effective investment plays an important role in stabilizing economic growth and strengthening momentum for development. It is necessary to innovate and improve policy measures, and intensify efforts to enhance the efficiency of utilizing funds such as central budget investments, ultra-long-term special treasury bonds, local government special bonds, and new-type policy-based financial instruments. In conjunction with formulating and implementing the 15th Five-Year Plan
Feb 6, 2026 23:56
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
Feb 6, 2026 23:54
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
Read More
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the plenary sessions of the Party’s 20th Central Committee, fully and faithfully apply the new development philosophy, strengthen top-level design, build computing power interconnection nodes oriented toward national hub periods, major strategic regions, and key industries, establish a system of computing power interconnection nodes, improve the efficiency and service level of public computing power resources, and promote high-quality development of computing power.
Feb 6, 2026 23:54
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
Feb 6, 2026 23:47
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
Read More
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions
After intensive indirect consultations, the new round of nuclear talks between Iran and the US in Muscat, the capital of Oman, has achieved phased progress. It is reported that during this round of talks, the Iranian and US delegations did not meet directly. Instead, Omani Foreign Minister Badr acted as an intermediary, conveying a series of core proposals, strategic concerns, and policy positions to the other side. The atmosphere at the talks was tense yet efficient. According to preliminary on-site assessments, although both sides continue to negotiate over specific terms, they have reached a consensus on the key objective of "continuing dialogue."
Feb 6, 2026 23:47