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SMM Morning Comments (Apr 19) Shanghai base metals mixed on Monday morning

iconApr 19, 2021 09:54
Source:SMM
Three-month LME copper closed 1.37% lower at $9,182/mt last Friday, while the most-traded SHFE 2106 copper contract shed 0.6% to end at 68,130 yuan/mt last Friday night.

SHANGHAI, Apr 19 (SMM) — Shanghai base metals set for a mixed start on Monday morning.  

Shanghai base metals fell for the most part last Friday night. Copper shed 0.6%, aluminium weakened 0.19%, zinc edged down 0.05% and nickel fell 1.38%, while lead advanced 0.27% and tin gained 0.88%. 

The LME complex performed similarly last Friday. Copper declined 1.37%, aluminium dropped 0.11%, zinc weakened 0.42% and nickel fell 0.86%, while lead added 0.32% and tin firmed 0.55%. 

Copper: Three-month LME copper closed 1.37% lower at $9,182/mt last Friday, while the most-traded SHFE 2106 copper contract shed 0.6% to end at 68,130 yuan/mt last Friday night. The annualized total number of housing starts in the United States exceeded expectations. The continued economic recovery has warmed up market sentiment, and investors are increasingly agreeing that the Fed will maintain its easing policy stance for a longer period of time. LME copper is expected to trade between $9,140-9,220/mt today, and SHFE copper between 67,800-68,300 yuan/mt, while spot copper will be traded between discounts of 110-20 yuan/mt.

Aluminium: Three-month LME aluminium slid 0.11% to settle at $2,318.5/mt last Friday. LME aluminium is likely to move between $2,300-2,350/mt today.

The most-active SHFE 2106 aluminium contract shed 0.19% to close at 17,960 yuan/mt last Friday night, and is expected to fluctuate between 17,800-18,100 yuan/mt today.  

Zinc: Three-month LME zinc weakened 0.42% to end at $2,858/mt last Friday, with open interest adding 733 lots to 250,776 lots. Zinc stocks across LME-listed warehouses dropped by 1,725 mt or 0.58% to 294,800 mt. Weaker US dollar and US Treasury yields and US new housing starts in March that registered a new high in 15 years supported zinc prices. LME zinc is likely to move between $2,830-2,880/mt today.

The most-liquid SHFE 2106 zinc contract edged down 0.05% to settle at 21,800 yuan/mt last Friday night, with open interest rising 741 lots to 57,586 lots. Resumption across domestic zinc mines and the arrival of imported zinc concentrate will ease domestic tight supply of zinc concentrate. Zinc social inventories extended declines last Friday. The June contract is likely to move between 21,500-22,000 yuan/mt today, while spot discounts for domestic 0# Shuangyan will be seen at 10 yuan/mt against the May contract.

Nickel: The most-traded SHFE 2106 nickel contract declined 1.38% to close at 122,854 yuan/mt last Friday night, with open interest adding 2,963 lots to 154,000 lots.

Lead: Three-month LME lead added 0.32% to end at $2,036/mt last Friday, and whether the contract could steady above the 60-day moving average today will be monitored. 

The most-active SHFE 2105 lead contract gained 0.27% to settle at 15,020 yuan/mt last Friday night.  Although lead downstream consumption remained sluggish amid a low season, maintenance across primary lead smelters and environmental inspections on secondary lead smelters will lend support to SHFE lead.

Tin: Three-month LME tin closed 0.55% higher at $26,570/mt last Friday. Suspension or output cuts across Chinese tin smelters stoked concerns on market tin supply. Whether LME tin could steady above the 26,500 mark today will be watched. 

The most-liquid SHFE 2106 tin contract gained 0.88% to end at 185,080 yuan/mt last Friday night, with open interest losing 748 lots to 33,954 lots. It is expected to fluctuate between 180,000-188,000 yuan/mt today.

Copper
Lead
Tin
Nickel
Zinc
Aluminium

For queries, please contact Michael Jiang at michaeljiang@smm.cn

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