SMM Evening Comments (Jun 9): Shanghai nonferrous metals rose across the board, lead advanced 2.93%

Published: Jun 9, 2021 18:00

Save

SHFE nonferrous metals closed higher across the board on Wednesday June 9 as China's producer inflation data for May came in higher than expected.

SHANGHAI, Jun 9 (SMM) – SHFE nonferrous metals closed higher across the board on Wednesday June 9 as China's producer inflation data for May came in higher than expected.

Lead was the best performer with a rise of 2.93%. Copper rose 0.17%, aluminium advanced 0.14%, nickel climbed 1.7%, tin increased 1.63% and zinc went up 0.44%.

The ferrous complex also rose across the board. Iron ore increased 3.98%, rebar rose 1.31%, and hot-rolled coil climbed 2.09%.

Copper: The most-traded SHFE 2107 copper contract finished the day 0.17% higher at 71,510 yuan/mt. Open interest rose 1,277 lots to 130,944 lots.

Aluminium: The most-liquid SHFE 2107 aluminium contract finished the day 0.14% higher at 18,390 yuan/mt. Open interest fell 1,700 lots to 191,341 lots.

Zinc: The most-active SHFE 2107 zinc contract closed up 0.44% at 22,685 yuan/mt. Open interest rose 839 lots to 92,801 lots. The increase of PPI in May was the highest since 2008, especially the rapid increase of commodity prices, which led to a sharp increase in enterprise costs and reduced profit margins. In addition, the National Development and Reform Commission held a working symposium on June 9, proposing to closely track the trend of commodity prices and do a good job in price forecasting and early warning, which may curb the upside space of zinc prices. On fundamentals, Yunnan officially announced that it will gradually increase the power load of nonferrous metal smelting and other industries. According to SMM survey, some enterprises have recovered half of their capacity utilisation rate. However, stocks kept falling before the Dragon Boat Festival, which was the main logic to support the current high fluctuation of zinc prices. Whether stocks will pile up after the Dragon Boat Festival to lead to the downward trend of zinc prices will be monitored.

Nickel: The most-traded SHFE 2107 nickel contract ended the day 1.7% higher at 132,800 yuan/mt today. Open interest rose 17,762 lots to 129,421 lots.

Lead: The most-traded SHFE 2107 lead contract ended the day 2.93% higher at 15,450 yuan/mt. Open interest fell 14,618 lots to 63,041 lots. The contract will test support from 15,300 yuan/mt tonight.

Tin: The most-liquid SHFE 2107 tin contract fell to a session low of 204,710 yuan/mt and finished the day 1.63% higher at 207,600 yuan/mt today. Open interest rose 2,518 lots to 29,651 lots. The guidance of LME tin trend on the trend of SHFE tin will be monitored. The tight domestic spot supply constituted a certain support for SHFE tin. Pressure above will be seen from 210,000 yuan/mt today. Support below will be seen from 200,000 yuan/mt today.

Evening comments Copper Aluminium Zinc Nickel Lead Tin

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

1 hour ago

Tender Notice for Projects Including Safe and Energy-Efficient Copper Conductor Rails

1 hour ago

2 hours ago

The Most-Traded BC Copper Contract Closed Down 1.16%, Inflation Concerns Suppressed Expectations for Interest Rate Cuts [SMM BC Copper Commentary]

2 hours ago

4 hours ago

SHFE Copper Broke Below the 100,000 Mark Again, and Downstream Purchase Sentiment Cooled

Intraday, the SHFE copper 2603 contract fell below the 100,000-yuan mark for the second time after trading began. According to SMM, spot market activity today pulled back from March 9, when the contract first fell below 100,000 yuan, with overall trading sentiment remaining subdued on both buying and selling sides. On March 16, 2026, SMM's sentiment index for procurement in the Shanghai spot market was 2.53, while the sales sentiment index was 2.63, both down 0.29 from March 9. Historical data is available in the database. According to SMM, when copper prices fell below 100,000 yuan on March 9, some enterprises had restocking demand, which briefly boosted spot trade and brought it to a post-Chinese New Year trading high. But based on market feedback today, the contract rollover in futures may have had an impact. With copper prices again trading below the 100,000-yuan threshold, downstream enterprises showed signs of weaker acceptance.

4 hours ago