SMM Evening Comments (May 11): Shanghai nonferrous metals fell across the board, nickel declined 1.35%

SHANGHAI, May 11 (SMM) – SHFE nonferrous metals all closed lower on Tuesday May 11. Copper shed 0.96%, aluminium weakened 0.72%, zinc fell 1.34%, nickel pulled back 1.35%, lead lost 0.29% and tin dropped 0.63%.

SMM data showed that a total of 84 vessels carrying 11.33 million mt of iron ore arrived at major Chinese ports during May 2-8, SMM estimates. This was down 420,000 mt from the previous week, and down 2.72 million mt from the same period last year.

Copper: The most-traded SHFE 2106 copper contract finished the day 0.96% lower at 76,000 yuan/mt, with open interest decreasing 12,565 lots to 139,000 lots.

Several Fed officials said that the disappointing employment report in April did not change the optimistic outlook of the labour market amid strong consumer demand. According to the Federal Reserve Bank of New York, US inflation expectations for one year rose to 3.4% in April, and expectations for changes in housing prices rose to 5.5% in April. China’s industrial producer price index (PPI) increased by 6.8% year-on-year in April, which is expected to increase by 6.5%,  and consumer price index (CPI) increased by 0.9% year-on-year in April, which is expected to increase by 1%. The National Bureau of Statistics today announced main results of the seventh national census, showing that China's population has continued to maintain a low-speed growth trend for the past 10 years.

Aluminium: The most-active SHFE 2106 aluminium contract shed 0.72% to close the day at 19,945 yuan/mt, with open interest losing 32,048 lots to 221,000 lots. Shrinking primary aluminium social inventories were supportive to aluminium prices.

Zinc: The most-liquid SHFE 2106 zinc contract ended the day 1.34% weaker at 22,515 yuan/mt, with open interest decreasing 11,548 lots to 79,025 lots.

Nickel: The most-traded SHFE 2106 nickel contract declined 1.35% to finish the day at 131,690 yuan/mt, with open interest decreasing 15,058 lots to 104,000 lots.

Lead: The most-active SHFE 2106 lead contract closed the day 0.29% lower at 15,705 yuan/mt, with open interest losing 1,488 lots to 50,648 lots. High lead prices kept downstream users cautious about restocking, and smelters remained willing to deliver cargoes to social warehouses. Whether the contract could steady above the 15,700 mark tonight will be monitored.

Tin: The most-liquid SHFE 2107 tin contract fell 0.63% to end the day at 194,800 yuan/mt, with open interest adding 513 lots to 32,696 lots. Rising domestic output and inventories and curbed consumption weighed on tin prices. It is expected to move between 191,000-197,000 yuan/mt today.