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SMM Evening Comments (Jun 3): Shanghai nonferrous metals declined for the most part, nickel advanced 0.07%
Jun 3,2021 18:00CST
SMM Comments
Source:SMM
SHFE nonferrous metals broadly fell on Thursday June 3 as investors reacted to data releases in China.

SHANGHAI, Jun 3 (SMM) – SHFE nonferrous metals broadly fell on Thursday June 3 as investors reacted to data releases in China.

Shanghai nonferrous metals, except for nickel, traded lower on Thursday June 3. Aluminium shed 1.37% to lead the losses, copper decreased 1.28%, lead declined 0.71%, zinc went down 0.61% and tin fell 0.75%, while nickel advanced 0.07%.

The ferrous complex also rose across the board. Iron ore increased 1.88%, rebar rose 1.72%, and hot-rolled coil climbed 2.06%.

Copper: The most-traded SHFE 2107 copper contract finished the day 1.28% lower at 73,020 yuan/mt. Open interest fell 4,259 lots to 138,000 lots.

According to the Beige Book survey of the Federal Reserve, the pace of economic recovery in the US moderately accelerated in April and May, and the overall price pressure further increased. It is planned to gradually reduce the corporate credit tools for the COVID-19. European Commission said that Fiscal policy need to be supportive in 2021 and 2022, and countries should avoid launching support too early. China's PPI and CPI scissors may give the central bank a longer window phase to avoid using monetary policy tools.

The number of US jobless claims as of May 29 and whether copper prices could keep the support of the 10-day moving average under the support of employment data will continue to be monitored tonight.

Aluminium: The most-liquid SHFE 2107 aluminium contract finished the day 1.37% lower at 18,425 yuan/mt. Open interest fell 632 lots to 205,880 lots. SMM data showed that aluminium billet stocks across the five major consumption areas — Foshan, Wuxi, Huzhou, Changzhou and Nanchang — in China increased 1.2% or 1,100 mt from a week ago to 89,400 mt as of Thursday June 3.

Zinc: The most-active SHFE 2107 zinc contract closed down 0.61% at 22,890 yuan/mt. Open interest fell 6,044 lots to 107,585 lots.

Nickel: The most-traded SHFE 2107 nickel contract ended the day 0.07% higher at 133,140 yuan/mt today. Open interest rose 13,840 lots to 138,995 lots.

Lead: The most-traded SHFE 2107 lead contract ended the day 0.71% lower at 15,305 yuan/mt. Open interest rose 1,812 lots to 63,383 lots. After the continuous decline of SHFE lead this week, the enthusiasm of downstream enterprises for purchasing at low prices improved slightly, while the overall consumption situation did not improve significantly. The price difference between the contract and the spot was still too large, and the carrier maintained a high intention to deliver the position. It is expected that the lead ingot will still run under the pressure of increasing stocks this week, and the support from 15,300 yuan/mt should be monitored tonight.

Tin: The most-liquid SHFE 2107 tin contract fell to a session low of 204,400 yuan/mt and finished the day 1.14% lower at 204,920 yuan/mt today. Open interest fell 589 lots to 31,567 lots. The previously announced US ISM manufacturing PMI in May was better than expected to help the US dollar rebound from the low level. The market focuses on the US nonfarm employment data, and continues to pay attention to the domestic and overseas market trends and the impact of macroeconomic policy dynamics on the futures price trend. The tight supply in domestic still supported tin prices. Pressure above will be seen from 210,000 yuan/mt today. Support below will be seen from 197,000 yuan/mt today.

Evening comments
Copper
Aluminium
Zinc
Nickel
Lead
Tin

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