SMM Evening Comments (Jun 11): Shanghai nonferrous metals rose across the board, aluminium advanced 3.7%

SHANGHAI, Jun 11 (SMM) – SHFE nonferrous metals broadly closed higher across the board on Friday June 11, following gains overnight on Wall Street that saw the S&P 500 sailing to a record closing high.

Aluminium was the best performer with a rise of 3.7%. Copper rose 0.39%, lead advanced 0.23%, nickel climbed 2.4%, tin increased 2.33% and zinc went up 1.2%.

The ferrous complex also rose across the board. Iron ore increased 5.9%, rebar rose 3.74%, and hot-rolled coil climbed 3.13%.

Copper: The most-traded SHFE 2107 copper contract finished the day 0.39% higher at 71,770 yuan/mt. Open interest fell 54 lots to 132,000 lots. The US CPI exceeded expectations in May, with a year-on-year increase of 5%, and the core CPI hit a new high since 1992. The European Central Bank's interest rate decision was released, and the interest rate remained unchanged. The Federal Reserve's interest rate decision next week will be monitored. The budget deficit of the US in the first eight months of fiscal year 2021 exceeded $2 trillion, and Biden's budget released last month estimated that the annual budget deficit was $3.7 trillion. The financial data released in China in May showed average performance, with M2 increasing by 8.3% year on year, and social financing scale decreasing year on year.

Aluminium: The most-liquid SHFE 2107 aluminium contract finished the day 3.7% higher at 19,195 yuan/mt. Open interest rose 11,502 lots to 197,942 lots.

Zinc: The most-active SHFE 2107 zinc contract closed up 1.2% at 22,740 yuan/mt. Open interest fell 1,231 lots to 87,451 lots. The CPI of the US in May exceeded expectations again, indicating that the inflation pressure in the US continued to rise, and the market reaction was relatively dull, with the US dollar index slightly rising in the near term. According to SMM news, the supply side gradually loosened, while the trend of consumption weakening was also obvious.

Nickel: The most-traded SHFE 2107 nickel contract ended the day 2.4% higher at 135,350 yuan/mt today. Open interest rose 25,174 lots to 139,821 lots.

Lead: The most-traded SHFE 2107 lead contract ended the day 0.23% higher at 15,465 yuan/mt. Open interest fell 6,157 lots to 51,963 lots. The contract will test pressure from 15,500 yuan/mt tonight.

Tin: The most-liquid SHFE 2107 tin contract fell to a session low of 206,510 yuan/mt and finished the day 2.47% higher at 212,260 yuan/mt today. Open interest rose 919 lots to 29,299 lots. The tight supply of tin market at home and abroad supported tin prices to reach a new high. It is expected that the contract will keep trading strongly in the near term. Pressure above will be seen from 215,000 yuan/mt today. Support below will be seen from 206,000 yuan/mt today.