SMM Evening Comments (Apr 21): Shanghai nonferrous metals fell across the board, zinc dropped 1.7%

SHANGHAI, Apr 21 (SMM) – SHFE nonferrous metals broadly fell on Wednesday April 21 as pandemic concerns weighed on sentiment

Zinc led the losses and slumped 1.7%, copper slipped 0.94%, nickel eased 0.21%, aluminium lost 0.69%, tin went down 0.53% and lead decreased 0.33%.

The ferrous complex rose across the board. Iron ore increased 1.38%, rebar rose 1.45%, and hot-rolled coil climbed 1.69%.

Copper: The most-traded SHFE 2106 copper contract finished the day 0.94% lower at 68,720 yuan/mt. Open interest fell 11,993 lots to 170,000 lots. With the pandemic worsening again in many countries, US stocks and China stocks fell for the second consecutive day overnight. Japan declared Tokyo, Osaka and other places in a state of emergency, and the pandemic re-fermented. Market sentiment was more or less suppressed, and positions reduced by 12,000 lots within the day. The rise of market risk aversion led to the rise of the US dollar index and gold, which dragged down copper prices at high level. EIA crude oil inventory change, and whether the changes in market bullish sentiment could give the copper prices direction will be monitored tonight.

Aluminium: The most-liquid SHFE 2106 aluminium contract finished the day 0.69% lower at 18,010 yuan/mt. Open interest fell 14,513 lots to 134,484 lots.

Zinc: The most-active SHFE 2106 zinc contract closed down 1.7% at 21,425 yuan/mt. Open interest rose 16,772 lots to 81,768 lots. The pandemic in Europe and America repeatedly triggered market panic about economic recovery. Customs data in March showed that China imported 360,000 mt of zinc concentrate and 46,000 mt of refined zinc. The increase in supply exceeded expectations, and zinc prices weakened. However, zinc ingot supply is tight in the near term, and the cost of smelters still supports zinc prices. The support level of BOLL line below will continue to be monitored tonight. It is expected that zinc prices will stop falling and stabilize under support.

Nickel: The most-traded SHFE 2106 nickel contract ended the day 0.21% lower at 120,850 yuan/mt today. Open interest fell 148 lots to 167,500 lots.

Lead: The most-traded SHFE 2105 lead contract rose to an intraday high of 15,285 yuan/mt and ended the day 0.39% lower at 15,185 yuan/mt. Open interest fell 5,422 lots to 27,599 lots. The spot consumption was still weak when lead prices increased. After the beneficial factors such as environmental impact on the supply side and tight raw materials were gradually released, the driving force for SHFE lead to continue to rise was slightly insufficient. The contract will test support from 60-day moving average tonight.

Tin: The most-liquid SHFE 2106 tin contract fell to a session low of 182,860 yuan/mt and finished the day 0.53% lower at 183,910 yuan/mt today. Open interest fell 1,684 lots to 33,189 lots.