SMM Morning Comments (Apr 9): Shanghai base metals were mostly higher on softer US dollar

Published: Apr 9, 2021 10:17

Save

Nonferrous metals on the SHFE rose for the most part on Friday morning, while their counterparts on the LME saw broad losses.

SHANGHAI, Apr 9 (SMM) — Nonferrous metals on the SHFE rose for the most part on Friday morning, while their counterparts on the LME saw broad losses.

Shanghai base metals, except for lead, closed higher in overnight trading as the US dollar index fell to two-week lows. Copper gained 0.77%, aluminium added 0.29%, zinc rose 1.14%, nickel advanced 1.16% and tin firmed 0.22%, while lead shed 0.1%.

The LME complex, except for tin, cruised higher on Thursday. Copper gained 0.89%, aluminium increased 1.15%, zinc advanced 1.06%, nickel strengthened 1.11%, and lead firmed 0.18%, while tin edged down 0.14%.

Copper: Three-month LME copper gained 0.89% to close at $9,009.5/mt on Thursday, while the most-traded SHFE 2105 copper contract firmed 0.77% to end at 67,150 yuan/mt in overnight trading. The US Labor Department reported first-time claims for the week ended April 3 totalled 744,000, well above the expectation for 694,000 from economists surveyed by Dow Jones, suggesting an unbalanced recovery in the labor market. US stocks recorded new highs overnight, while the US dollar index fell to two-week lows, which boosted copper futures. LME copper is expected to trade between $8,980-9,060/mt today, and SHFE copper between 66,900-67,400 yuan/mt, while spot copper will be traded between discounts of 10 yuan/mt and premiums of 60 yuan/mt.

Aluminium: Three-month LME aluminium settled 1.15% higher at $2,285.5/mt on Thursday, and is expected to trade between $2,250-2,310/mt today.

The most-active SHFE 2105 aluminium contract added 0.29% to close at 17,540 yuan/mt in overnight trading, with open interest losing 3,747 lots to 190,000 lots. It is likely to trade between 17,450-17,650 yuan/mt today.

Zinc: Three-month LME zinc rose 1.06% to end at $2,860.5 on Thursday, posting a three-day winning streak, with open interest rising 2,469 lots to 236,000 lots. LME zinc stocks were unchanged at 267,650 mt. LME zinc is expected to fluctuate between $2,820-2,870/mt today.

The most-liquid SHFE 2105 zinc contract settled 1.14% firmer at 22,135 yuan/mt in overnight trading, with open interest adding 4,163 lots to 88,509 lots. The May contract is likely to move between 21,700-22,200 yuan/mt today, while spot discounts for domestic 0# Shuangyan will be seen at 20-30 yuan/mt against the contract.

Lead: Three-month LME lead closed 0.18% higher at $1,985.5/mt on Thursday. Weaker US dollar supported lead prices.

The most-traded SHFE 2105 lead contract shed 0.1% to end at 14,925 yuan/mt in overnight trading. Whether the contract could return above the five-day moving average today will be monitored.

Tin: Three-month LME tin dropped 0.14% to settle at $25,715/mt on Thursday, and is likely to fluctuate between $25,000-26,000/mt today.

The most-active SHFE 2106 tin contract ended 0.22% higher at 183,500 yuan/mt in overnight trading. Domestic tin ore output in January-February rose 26% year on year, offsetting the supply gap caused by smaller imports. Raw materials supply is still affected by a resurgence of COVID-19 cases in Yunnan Ruili and shutdown of local fuming furnaces. SHFE tin is expected to move between 177,000-185,000 yuan/mt today.

Copper Nickel Lead Tin Zinc Aluminium

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

6 hours ago

AI Computing Power Demand Boom Fuels Continuous Climb in Copper Foil Operations; Copper Cable High-Speed Connectors Strengthen, Taichenguang Leads Gains [SMM Express]

6 hours ago

Tertiary Minerals Completes Phase 4 Drilling at Zambia’s Mushima North Copper Project

Tertiary Minerals Plc has completed its Phase 4 drilling programme at Target A1 within the Mushima North Project in Zambia, with early portable X-Ray Fluorescence (pXRF) results identifying further copper mineralisation and supporting previously identified higher-grade zones. The Phase 4 programme comprised 3,639 m of drilling across 39 holes. Early results included an intersection of 15 m grading 0.53% copper from 100 m depth, including 7 m at 0.77% copper. Additional intersections included 4 m at 0.68% copper and 8 m at 0.62% copper, while broader infill intersections returned 65 m at 0.23% copperand 83 m at 0.16% copper. Mushima North is a polymetallic silver-copper-zinc prospect located within Zambia’s prospective Iron-Oxide-Copper-Gold region, approximately 28 km east of the historic Kalengwa copper-silver mine. The latest drilling supports the previously identified near-surface Exploration Target of 15–30 million tonnes grading 40–60 g/t silver equivalent, while also providing further indications of higher-grade copper and silver mineralisation within the target area. Samples from the drilling programme have been submitted for independent laboratory testing, with certified results expected to be released as they become available. Remaining pXRF results from the final nine holes are also expected, covering additional infill drilling at Target A1 and exploration of mineralisation west of Target A1 and at Target A2. With Phase 4 drilling now complete, the project is moving into its next stage of technical evaluation. Initial metallurgical testwork is expected to commence shortly, followed by data compilation and resource modelling. Tertiary Minerals is targeting the delivery of a JORC-compliant Mineral Resource Estimate for Mushima North before the end of 2026, which would provide a clearer assessment of the scale and grade distribution of the mineralised system following the latest drilling campaign.

6 hours ago

7 hours ago

Copper Mineralisation Extends Beyond Current Resource at Zambia’s Mumbezhi Project

According to foreign media reports, step-out drilling at the Nyungu Central deposit within Zambia’s Mumbezhi Copper Project has returned further copper intersections, extending a newly identified mineralised zone southeast beyond the boundaries of the current Mineral Resource Estimate (MRE). Recent drilling returned 65.8 m grading 0.42% copper from 226 m, including higher-grade intervals of 17.0 m at 0.58% copper and 13.2 m at 0.82% copper. A separate intersection returned 29.6 m grading 0.34% copper from 237 m, including 5.2 m at 0.80% copper. The results extend the known copper system outside the current resource estimate and provide additional targets for continued exploration. A total of 16 Phase 3 diamond drill holes covering 4,723 m have so far been completed at the southern end of Nyungu Central, while priority assay results remain pending for seven holes. In addition, a 6,200 m infill diamond drilling programme commenced at Nyungu Central in late July, supported by an additional drill rig now on site. Exploration is also continuing across the wider Mumbezhi Project, with four diamond drill rigs currently operating. Three are focused on Nyungu Central, while another is drilling at the regional Sharamba prospect, where exploration is targeting shallow copper mineralisation associated with a strong airborne electromagnetic anomaly. Visual copper mineralisation has been observed in five holes drilled along approximately 700 m of strike on the western side of the anomaly. The latest intersections further extend the known copper mineralisation beyond the existing Nyungu Central resource boundaries, while several priority assay results remain outstanding. Continued step-out and infill drilling will provide further indications of the scale and continuity of the mineralised system and its potential to support future resource expansion at Mumbezhi.

7 hours ago