SMM Evening Comments (May 14): Nonferrous metals on the SHFE fell across the board, lead plunged 2.24%

SHANGHAI, May 14 (SMM) – SHFE nonferrous metals all closed lower on Friday May 14. Copper declined 1.92%, aluminium fell 2.03%, zinc shed 0.59%, nickel dropped 1.29%, lead slumped 2.24% and tin slid 0.13%.

Copper: The most-traded SHFE 2106 copper contract fell 1.92% to finish the day at 74,560 yuan/mt, with open interest decreasing 6,586 lots to 125,000 lots.

US first-time filings for jobless claims last week fell to a new low since the outbreak of the Covid-19 pandemic. Producer prices rose more than expected in April, adding to inflationary pressures. Mortgage interest rates fell for the second consecutive week, approaching their lowest level on record.

US retail sales for April and University of Michigan's consumer sentiment index for May are set for release tonight.

Aluminium: The most-active SHFE 2106 aluminium declined 2.03% to close the day at 19,315 yuan/mt, with open interest losing 18,174 lots to 179,000 lots. Domestic aluminium supply will increase as new capacities have been put into operation and as the import arbitrage window opened intermittently. Although the month of May is usually a high season for aluminium consumption, large fluctuations in prices may curb demand.

Zinc: The most-liquid SHFE 2106 zinc contract ended the day 0.59% lower at 22,020 yuan/mt, with open interest decreasing 3,129 lots to 69,120 lots.

Nickel: The most-traded SHFE 2106 nickel contract finished the day 1.29% weaker at 128,770 yuan/mt, with open interest losing 5,331 lots to 84,347 lots.

Lead: The most-active SHFE 2106 lead contract plunged 2.24% to close the day at 15,055 yuan/mt, with open interest losing 744 lots to 49,496 lots, posting a three-day losing streak.

Tin: The most-liquid SHFE 2107 tin contract slid 0.13% to end the day at 192,920 yuan/mt, with open interest declining 180 lots to 31,478 lots, and it is expected to move between 189,000-196,000 yuan/mt tonight.