SMM Evening Comments (May 19): Shanghai nonferrous metals fell for the most part, aluminium slumped 2.28%

SHANGHAI, May 19 (SMM) – Shanghai base metals fell broadly on Wednesday May 19. Copper declined 2.01%, aluminium plunged 2.28%, zinc fell 1.04%, nickel and tin edged down 0.05%, while lead gained 1.63%.

Copper: The most-traded SHFE 2106 copper contract finished the day 2.01% lower at 74,090 yuan/mt, with open interest losing 11,121 lots to 108,000 lots.

The National Development and Reform Commission responded to the recent sharp increase in commodity prices, stating that commodity prices will gradually return to the fundamentals of supply and demand. At present, the National Development and Reform Commission and the State Administration of Market Supervision are jointly investigating industry market conditions, and will take targeted measures to strengthen the supervision of the futures market and effectively maintain market stability. Today, the atmosphere in the A-share market and the futures market has turned pessimistic, and longs left.

Aluminium: The most-active SHFE 2106 aluminium contract plunged 2.28% to close the day at 19,290 yuan/mt, with open interest decreasing 19,309 lots to 131,000 lots.

Zinc: The most-liquid SHFE 2107 zinc contract ended the day 1.04% weaker at 22,755 yuan/mt, with open interest losing 2,527 lots to 77,684 lots. Domestic zinc ingot output in May is expected to shrink 6,848 mt on the month as power curtailment in Yunnan, Guangxi and Guangdong restricted local production, which is supportive to zinc prices.

Nickel: The most-traded SHFE 2106 nickel contract edged down 0.05% to finish the day at 132,810 yuan/mt, with open interest decreasing 16,516 lots to 72,718 lots.

Lead: The most-active SHFE 2106 lead contract gained 1.63% to close the day at 15,575 yuan/mt, with open interest losing 4,956 lots to 43,301 lots.

Tin: The most-liquid SHFE 2107 tin contract shed 0.05% to end the day at 198,830 yuan/mt, with open interest adding 1,606 lots to 36,372 lots, and it is expected to move between 197,000-200,000 yuan/mt tonight.