SMM Evening Comments (Mar 24): Shanghai nonferrous metals fell for the most part, tin plunged 2.31%

SHANGHAI, Mar 24 (SMM) – Shanghai base metals fell broadly on Wednesday March 24. Copper shed 0.88%, aluminium weakened 0.5%, zinc fell 1.77%, nickel dropped 1.96% and tin plunged 2.31%, while lead added 0.3%.

Copper: The most-traded SHFE 2105 copper contract finished the day 0.88% lower at 66,480 yuan/mt, with open interest rising 1,127 lots to 151,000 lots.

The US Federal Reserve Chairman Powell played down concerns about possible excessive inflation in his speech. He expects that the inflation rate will rise this year, but it will not get out of control. The market is concerned about the recent increase in the number of confirmed COVID-19 cases and deaths in Europe.

Aluminium: The most-active SHFE 2105 aluminium contract weakened 0.5% to end the day at 17,075 yuan/mt, with open interest losing 6,064 lots to 219,000 lots.

Zinc: The most-liquid SHFE 2105 zinc contract dropped 1.77% to close the day at 21,635 yuan/mt, with open interest decreasing 2,472 lots to 84,546 lots.

Nickel: The most-active SHFE 2106 nickel contract declined 1.96% to finish the day at 120,820 yuan/mt, with open interest adding 4,377 lots to 144,000 lots.

Lead: The most-traded SHFE 2105 lead contract inched up 0.3% to end the day at 15,240 yuan/mt, with open interest losing 431 lots to 37,126 lots. Whether the contract could steady above 15,200 yuan/mt tonight will be monitored.

Tin: The most-liquid SHFE 2105 tin contract slumped 2.31% to close the day at 173,320 yuan/mt after hitting a two-week low at 172,710 yuan/mt earlier in the session, with open interest adding 276 lots to 32,081 lots. Plunged crude oil prices drove up risk-off sentiment, and this, combined with stronger US dollar weighed on tin prices. The May contract is expected to move between 170,000-180,000 yuan/mt tonight.