SMM Morning Comments (Apr 13): Shanghai base metals fell for the most part; China trade data for March ahead

Published: Apr 13, 2021 10:11
Shanghai base metals mostly cruised lower on Tuesday morning, and their LME counterparts also saw broad losses.

SHANGHAI, Apr 13 (SMM) — Shanghai base metals mostly cruised lower on Tuesday morning, and their LME counterparts also saw broad losses. 

Looking ahead, China’s trade data for March is expected to be out at around 11 a.m. HK/SIN.

Shanghai base metals all closed lower in overnight trading. Copper shed 0.23%, aluminium slid 0.17%, zinc plunged 2.12%, nickel slumped 2.02%, lead weakened 0.44% and tin slipped 0.8%. 

The LME complex, except for lead, moved lower on Monday. Copper dropped 0.64%, aluminium edged down 0.09%, zinc and nickel declined 2.7% and tin fell 0.33%, while lead advanced 0.41%.

Copper: Three-month LME copper shed 0.64% to close at $8,872/mt on Monday, while the most-traded SHFE 2105 copper contract weakened 0.23% to end at 65,910 yuan/mt in overnight trading.    LME copper is expected to trade between $8,810-8,890/mt today, and SHFE copper between 65,500-66,000 yuan/mt, while spot premiums will be seen at 30-1010 yuan/mt.

Aluminium: Three-month LME aluminium edged down 0.09% to settle at $2,267/mt on Monday and is expected to move between $2,250-2,280/mt today.

The most-active SHFE 2105 aluminium contract weakened 0.17% to close at 17,385 yuan/mt in overnight trading, with open interest rising 1,819 lots to 180,000 lots, and it is likely to fluctuate between 17,300-17,500 yuan/mt today.

Zinc: Three-month LME zinc plunged 2.7% to end at $2,759.5/mt, with open interest adding 8,236 lots to 243,000 lots. Zinc stocks across LME-listed warehouses surged by 14,275 mt or 5.33% to 281,925 mt. The $1.9 trillion stimulus plan caused a year-on-year surge of 454% in US federal budget deficit in March. Investors worry that Biden's new infrastructure plan may trigger high inflation. LME zinc is likely to move between $2,750-2,800/mt today.

The most-liquid SHFE 2105 zinc contract settled 2.12% lower at 21,285/mt in overnight trading, posting a tree-day losing streak, with open interest rising 2,591 lots to 71,406 lots. The May contract is likely to move between 21,200-21,700 yuan/mt today, while spot discounts for domestic 0# Shuangyan will be seen at 10 yuan/mt against the contract.

Nickel: The most-traded SHFE 2106 nickel contract fell 2.02% to close at 121,980 yuan/mt in overnight trading, with open interest adding 785 lots to 159,000 lots.

Lead: Three-month LME lead added 0.41% to end at $1,980/mt on Monday. 

The most-active SHFE 2105 lead contract slid 0.44% to settle at 14,735 yuan/mt in overnight trading.

Tin: Three-month LME tin closed 0.33% lower at $25,620/mt on Monday. Investors worried that China, a large metals consumer, will curb commodities prices to prevent potential inflation, and this, combined with concerns on weakening demand and rising inventories, weighed on tin prices.   LME tin is expected to move between $25,000-26,000/mt today.

The most-liquid SHFE 2106 tin contract settled 0.8% lower at 177,470 yuan/mt in overnight trading, with open interest adding 393 lots to 31,723 lots. It is likely to fluctuate between 177,000-181,000 yuan/mt today.

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
Copper Prices Rebound Sharply: Bad News Fully Priced In, or Fundamentals Reasserting Themselves?
13 hours ago
Copper Prices Rebound Sharply: Bad News Fully Priced In, or Fundamentals Reasserting Themselves?
Read More
Copper Prices Rebound Sharply: Bad News Fully Priced In, or Fundamentals Reasserting Themselves?
Copper Prices Rebound Sharply: Bad News Fully Priced In, or Fundamentals Reasserting Themselves?
13 hours ago
Doosan Invests $701.5M to Expand CCL Production in Korea and China Through 2028
13 hours ago
Doosan Invests $701.5M to Expand CCL Production in Korea and China Through 2028
Read More
Doosan Invests $701.5M to Expand CCL Production in Korea and China Through 2028
Doosan Invests $701.5M to Expand CCL Production in Korea and China Through 2028
Doosan Group said on September 17 that it will invest approximately KRW 968.4 billion (about USD 701.5 million) to expand high-end copper-clad laminate (CCL) production in South Korea and China. Roughly KRW 421 billion will expand domestic CCL lines for optical modules, while about KRW 547.4 billion will build a new plant in Changshu, China, for AI accelerators and network switches via wholly-owned Doosan Electro-Materials Changshu, with an additional KRW 182.4 billion capital injection. The three-year investment runs through 2028, with new lines scheduled to begin operations in the second half of 2028. In H1 2026, utilization at Doosan's Jeungpyeong and Gimcheon plants reached 109.8% and 102.7%, respectively, while the China plant ran at 92.2%. Q2 2026 optical-module CCL sales jumped more than tenfold year-on-year to about KRW 50 billion, and network-board CCL sales reached KRW 369.2 billion, accounting for more than half of the Electronics Business Group's revenue.
13 hours ago
Copper Cathode Rod Orders Expand, Inventories Decline; Production to Increase 2.31% WoW
14 hours ago
Copper Cathode Rod Orders Expand, Inventories Decline; Production to Increase 2.31% WoW
Read More
Copper Cathode Rod Orders Expand, Inventories Decline; Production to Increase 2.31% WoW
Copper Cathode Rod Orders Expand, Inventories Decline; Production to Increase 2.31% WoW
[SMM Copper Cathode Rod Flash] New orders continued to expand, and with the holiday approaching, finished product inventories destocked at a faster pace. Production willingness at copper cathode rod enterprises strengthened, and the operating rate is expected to rise 2.31 percentage points WoW next week.
14 hours ago