SMM Evening Comments (Apr 20): Shanghai nonferrous metals ended mixed as China kept its benchmark lending rate unchanged

Published: Apr 20, 2021 18:00

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SHFE nonferrous metals closed mixed on Tuesday April 20 as China kept its benchmark lending rate unchanged.

SHANGHAI, Apr 20 (SMM) – SHFE nonferrous metals closed mixed on Tuesday April 20 as China kept its benchmark lending rate unchanged.

Lead, the best performer, rose 1.56%, aluminium advanced 0.11% and copper went up 1.06%, while zinc edged down 0.66%, tin fell 0.01% and nickel weakened 0.83%.

A total of 84 vessels carrying 12.31 million mt of iron ore arrived at major Chinese ports during April 11-17, SMM estimates. This was down 890,000 mt from the previous week, and basically flat from the same period last year.

The ferrous complex rose across the board. Iron ore increased 3.58%, rebar rose 1.18%, and hot-rolled coil climbed 0.41%.

Copper: The most-traded SHFE 2106 copper contract finished the day 1.06% higher at 69,450 yuan/mt. Open interest fell 396 lots to 182,260 lots.

Aluminium: The most-liquid SHFE 2106 aluminium contract finished the day 0.11% higher at 18,095 yuan/mt. Open interest fell 14,231 lots to 148,997 lots.

Zinc: The most-active SHFE 2106 zinc contract closed down 0.62% at 21,745 yuan/mt. Open interest fell 5,122 lots to 64,996 lots. The pandemic in some countries continued to ferment, and Biden was willing to compromise on the infrastructure bill. Zinc prices were on the high side amid tepid spot market, and the contract traded weakly under pressure. However, zinc supply was still tight in the near term. The support level of each moving average below will continue to be monitored tonight. It is expected that zinc prices will be supported to stop falling and stabilise.

Nickel: The most-traded SHFE 2106 nickel contract ended the day 0.83% lower at 120,960 yuan/mt today. Open interest rose 908 lots to 167,648 lots.

Lead: The most-traded SHFE 2105 lead contract rose to an intraday high of 15,325 yuan/mt and ended the day 1.43% higher at 15,300 yuan/mt. Open interest fell 6,823 lots to 33,130 lots. Although both supply and demand weakened in the off-season of domestic consumption, the impact of environmental protection inspectors on the supply side did not ended, supporting lead prices. When the spot lead prices rose sharply, the downstream receiving intention faded, the pre-stockpiling was sufficient, and the buyers had a strong wait-and-see attitude. Whether the contract could stand firm above 15,200 yuan/mt will be monitored tonight.

Tin: The most-liquid SHFE 2106 tin contract fell to a session low of 182,200 yuan/mt and finished the day 0.01% lower at 185,300 yuan/mt today. Open interest rose 8 lots to 34,873 lots. Recently, the reduction and suspension of production in the main smelting producing areas increased, supporting SHFE tin. The contract will keep fluctuating strongly in the near term. Pressure above will be seen from 188,000 yuan/mt today. Support below will be seen from 180,000 yuan/mt today.

Evening comments Copper Aluminium Zinc Nickel Lead Tin

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.

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