SMM Evening Comments (Mar 1): Shanghai nonferrous metals fell across the board on Monday

Published: Mar 1, 2021 18:22

Save

SHFE nonferrous metals all closed lower on Monday March 1. Copper fell 2.46%, aluminium declined 2.18%, zinc shed 1.52%, nickel weakened 2.44%, lead dropped 2.51% and tin plunged 3.24%.

SHANGHAI, Mar 1 (SMM) – SHFE nonferrous metals all closed lower on Monday March 1. Copper fell 2.46%, aluminium declined 2.18%, zinc shed 1.52%, nickel weakened 2.44%, lead dropped 2.51% and tin plunged 3.24%.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei increased 2,300 mt from last Friday February 26 to 264,400 mt as of Monday March 1. The stocks were up 12,000 mt from February 22.

Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin expanded 1,800 mt from last Friday February 26 to 48,500 mt as of Monday March , an SMM survey showed. This was up 3,900 mt from last Monday February 22.

China’s official manufacturing Purchasing Managers’ Index (PMI) for February came in at 50.6 over the weekend, according to data released by the country’s National Bureau of Statistics.

That was lower than January’s reading of 51.3 but still above the 50 level that separates expansion from contraction.

A private survey released Monday also showed China’s manufacturing activity in February growing at a slower pace.

The Caixin/Markit manufacturing Purchasing Managers’ Index (PMI) came in at 50.9, a decline from January’s reading of 51.5.

Levels above 50 in PMI readings represent expansion while those below that signify contraction. PMI readings are sequential and show on-month expansion or contraction.

Copper: The most-traded SHFE 2104 copper contract fell 2.46% to end the day at 67,450 yuan/mt with open interest decreasing 13,111 lots to 128,000 lots.

The House of Representatives passed President Joe Biden’s $1.9 trillion stimulus package, which includes extensions to programs designed to assist millions of unemployed Americans and provides financial support for state and local governments.

Aluminium: The most-liquid SHFE 2104 aluminium contract ended the day 2.18% lower at 17,020 yuan/mt.

Zinc: The most-active SHFE 2104 zinc contract fell 1.52% to close the day at 21,340 yuan/mt, with open interest adding 725 lots to 71,800 lots. Market sentiment calmed down after the $1.9 trillion stimulus package was passed.

Nickel: The most-traded SHFE 2104 nickel contract ended the day 2.44% lower at 138,640 yuan/mt, after earlier hitting a more than one-week low at 138,000 yuan/mt, with open interest losing 12,046 lots to 115,679 lots.

Lead: The most-liquid SHFE 2104 lead contract finished the day 2.51% lower at 15,330 yuan/mt after hitting a more than two-week low at 15,250 yuan/mt earlier in the session. SHFE lead is likely to weaken this week, but expectations of rising inflation and relatively high production costs of secondary lead will support lead prices. Downstream lead-acid battery makers have started restocking raw materials.

Tin: The most-traded SHFE 2104 tin contract plunged 3.24% to close the day at 182,310 yuan/mt, after hitting a one-week low at 181,170 yuan/mt earlier in the session, with open interest decreasing 3,426 lots to 17,299 lots.

Copper Lead Tin Nickel Aluminium Zinc

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

3 mins ago

Copper 360 Reaches Key Milestone in $50M South African Mine Development, Shares Rise 10%

According to foreign media reports, JSE-listed copper producer Copper 360 has reached a major milestone in its $50 million underground development program at the Rietberg mine in South Africa's Northern Cape. Underground excavation has successfully passed the halfway mark of its 544-meter development target, setting the company on track to intersect its primary ore body on the 300 Level within the next 90 days. This progress marks a strategic shift for the mine as it transitions from capital-intensive waste development into revenue-generating hard-rock mining. Reaching the ore block will provide an immediate feed of copper-bearing material directly to the upgraded Modular Flotation Plant 2 (MFP2). The alignment between underground production and processing capacity is expected to ramp run-of-mine output up to approximately 700 tonnes per day, fully utilizing the plant's installed capacity and delivering higher feed grades alongside improved recoveries. To secure long-term operational flexibility, the company plans to concurrently extend the underground haulage decline down to the 350 Level. This move will open additional mining areas and support a sustained long-term production profile beyond the initial ramp-up phase. Investors responded enthusiastically to the development, driving Copper 360’s shares up by more than 10% on the Johannesburg Stock Exchange following the operational update. The project reinforces the company's efforts to establish a fully integrated copper production footprint in the region.

3 mins ago

1 hour ago

Freeport Grasberg Production Resumption Continues to Advance, Expected to Return to Near Full Production by the End of 2027

During Freeport-McMoRan’s Q2 earnings call, the company disclosed that the block cave underground project resumption of production at the Grasberg mine in Indonesia is progressing in line with expectations, with ramp-up at Production Block 2 and Block 3 proceeding according to the plan formulated in April. Production at Grasberg was partially suspended earlier due to the September 2025 wet ore inflow incident in the underground mine, after which the company initiated cleaning, repairs, and phased production resumptions. According to Freeport, repair work at the Grasberg Block Cave was completed in Q1 2026, and production resumption ramp-up began in March, reaching planned operating levels in Q2. The company currently expects Grasberg capacity to recover to approximately 65% in H2 2026, further improve to around 80% by mid-2027, and plans to approach full capacity by the end of 2027. On production, Freeport expects the Grasberg mine to produce a cumulative total of approximately 6.8 billion pounds of copper from 2026 to 2030, averaging about 1.4 billion pounds per year. Copper production is expected to rebound significantly after 2027 as the Block Cave capacity gradually resumes. Additionally, Freeport noted that Grasberg still has expansion potential, with the Kucing Liar project under development. Ramp-up is expected to begin around 2030, with an expected incremental copper capacity addition of 750 million pounds per year once full production is achieved.

1 hour ago

4 hours ago

[SMM Analysis] China’s Sulphuric Acid Production and Sulphur/Sulphuric Acid Imports & Exports in H1 2026

In H1 2026, China’s sulphur market experienced a full transmission chain of “import collapse – output pressure – export stagnation”. Key figures: Production: National sulphuric acid output in January–May fell 1.6% y‑o‑y, with significant declines in traditional phosphate fertiliser producing provinces like Hubei, Guizhou, and Yunnan, while Anhui and other smelter‑acid‑concentrated regions saw growth. Exports: Sulphuric acid exports practically halted in June......

4 hours ago