SMM Evening Comments (Mar 17): Shanghai nonferrous metals were mostly lower on Wednesday

Published: Mar 17, 2021 17:43

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Shanghai base metals fell for the most part on Wednesday March 17. Copper slid 0.71%, aluminium weakened 0.42%, zinc dropped 0.6% and nickel declined 0.98%, while lead edged up 0.03% and tin inched up 0.07%.

SHANGHAI, Mar 17 (SMM) – Shanghai base metals fell for the most part on Wednesday March 17. Copper slid 0.71%, aluminium weakened 0.42%, zinc dropped 0.6% and nickel declined 0.98%, while lead edged up 0.03% and tin inched up 0.07%.

Copper: The most-liquid SHFE 2105 copper contract shed 0.71% to finish the day at 66,940 yuan/mt, with open interest losing 4,369 lots to 150,000 lots. Open interest of the April contract decreased 3,919 lots to 75,000 lots.

Investors are keeping a watchful eye on the US Federal Reserve’s policy meeting. With Fed policymakers expected to forecast the fastest U.S. economic growth in decades in the wake of Covid-19 vaccinations and $1.9 trillion in new stimulus, market participants will be focused on cues that the central bank could start raising interest rates in 2023, earlier than it had said.

Aluminium: The most-active SHFE 2105 aluminium contract ended the day 0.42% lower at 17,710 yuan/mt, with open interest adding 5,010 lots to 259,000 lots.

Zinc: The most-traded SHFE 2104 zinc contract weakened 0.6% to close the day at 21,715 yuan/mt, with open interest decreasing 3,409 lots to 61,882 lots. Domestic zinc ingot supply is expected to tighten as smelters are facing stricter environmental restrictions.

Nickel: The most-liquid SHFE 2106 nickel contract fell 0.98% to finish the day at 120,170 yuan/mt, with open interest rising 14,082 lots to 143,000 lots.

Lead: The most-active SHFE 2104 lead contract edged up 0.03% to end the day at 14,850 yuan/mt, with open interest losing 2,091 lots to 34,842 lots. Trades were quiet in the spot market as lead downstream sector has gradually entered a low season.

Tin: The most-traded SHFE 2105 tin contract inched up 0.07% to close the day at 176,040 yuan/mt, with open interest losing 470 lots to 32,970 lots, and is expected to trade between 170,000-180,000 yuan/mt tonight.

Copper Aluminium Lead Tin Nickel 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.

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