SMM Evening Comments (Apr 12): Shanghai nonferrous metals fell across the board, nickel dropped 3.58%

SHANGHAI, Apr 12 (SMM) – SHFE nonferrous metals broadly fell on Monday April 12, tracking global sentiment.

Nickel led the losses and slumped 3.58%, copper slipped 1.76%, zinc eased 2.2%, aluminium lost 0.66%, tin went down 2.5% and lead decreased 0.97%.

The ferrous complex closed mixed. Hot-rolled coil decreased 2.12%, rebar slipped 1.99%, while iron ore surged 25.5%.

Copper: The most-traded SHFE 2106 copper contract finished the day 1.87% lower at 65,760 yuan/mt. Open interest rose 3,704 lots to 127,800 lots.

The Prime Minister emphasized the "stability" of macroeconomic policies at the economic work conference. Premier responded to commodity price increase and proposed to strengthen market regulation of raw materials, etc., and ease cost pressure of enterprises. The bullish sentiment in the market has been significantly suppressed. Even if the Fed continued its dovish argument, Biden put forward the $1.52 trillion 2022 fiscal year budget, and the producer price index of the US posted faster increase and exceeded expectations in March, it was still difficult to change its downward trend.

Eurozone retail sales data for February will continue to be monitored tonight.

Aluminium: The most-liquid SHFE 2105 aluminium contract finished the day 0.66% lower at 17,395 yuan/mt. Open interest fell 8,201 lots to 178,112 lots.

Zinc: The most-active SHFE 2105 zinc contract closed down 2.2% at 21,535yuan/mt. Open interest fell 10,621 lots to 68,815 lots.

Nickel: The most-traded SHFE 2106 nickel contract ended the day 3.58% lower at 122,260 yuan/mt today. Open interest fell 4,656 lots to 158,632 lots.

Lead: The most-traded SHFE 2105 lead contract rose to an intraday high of 14,815 yuan/mt and ended the day 0.97% lower at 14,740 yuan/mt. Open interest rose 4,614 lots to 49,664 lots. Trading in the spot market is tepid today, and the reluctance of cargo holders to sell is slightly higher than that of last week. The market reflects that the prices of raw materials such as crude lead and battery scrap are relatively firm, and the tight supply of raw materials gives the lead price a certain cost support. The impact of the goods delivered this week entering the social warehouse on the market should be monitored in the near term, and the contract will test support from 14,700 yuan/mt tonight.

Tin: The most-liquid SHFE 2106 tin contract fell to a session low of 176,530 yuan/mt and finished the day 2.5% lower at 178,190 yuan/mt today. Open interest fell 1,559 lots to 31,330 lots. Less-than- expected consumption and slow decline in inventories put pressure on the contract. The contract is expected to test pressure from 40-day moving average in the near term. Pressure above will be seen from 183,000 yuan/mt today. Support below will be seen from 177,000 yuan/mt today.