SMM Evening Comments (Jun 23): Shanghai nonferrous metals closed mostly higher ahead of PMI data

Published: Jun 23, 2021 18:00

Save

SHFE nonferrous metals broadly rose for the most part on Wednesday June 23 with investors awaiting key Purchasing Managers' Indexes from the euro zone.

SHANGHAI, Jun 23 (SMM) – SHFE nonferrous metals broadly rose for the most part on Wednesday June 23 with investors awaiting key Purchasing Managers' Indexes from the euro zone.

Tin, the best performer, rose 3.61%, copper advanced 2.03%, nickel went up 2.7%, zinc climbed 0.93% and aluminium gained 1.22%, while lead fell 0.32%.

The ferrous complex rose across the board. Iron ore surged 3.99%, rebar rose 1.44%, and hot-rolled coil climbed 0.66%.

Copper: The most-traded SHFE 2108 copper contract finished the day 2.03% higher at 68,480 yuan/mt. Open interest fell 7,894 lots to 80,005 lots. Federal Reserve Chairman Powell reiterated that the recent price increase was larger than expected due to the economic restart, but inflation may fall in the future. The Fed will be patient in raising interest rates, and will not preemptively raise interest rates because employment is too high or it is worried about inflation. The Fed has just started to debate on reducing its debt purchase, but it is still far away from the discussion on raising interest rates. San Francisco Fed President said that the US economy has not yet reached the conditions to support debt reduction. With Powell's two consecutive soothing speeches, the market sentiment has picked up. The European Central Bank's speech and the initial value of Markit manufacturing PMI in June in the USt and Europe, and whether the contract could stand firm above the five-day moving average will continue to be monitored tonight.

Aluminium: The most-liquid SHFE 2107 aluminium contract finished the day 1.22% higher at 18,725 yuan/mt. Open interest fell 7,876 lots to 103,854 lots.

Zinc: The most-active SHFE 2107 zinc contract closed up 0.93% at 21,820 yuan/mt. Open interest fell 13,324 lots to 52,112 lots.

Nickel: The most-traded SHFE 2107 nickel contract ended the day 2.7% higher at 133,700 yuan/mt today. Open interest fell 4,819 lots to 91,254 lots.

Lead: The most-traded SHFE 2107 lead contract ended the day 0.32% lower at 15,415 yuan/mt. Open interest fell 4,715 lots to 27,165 lots. Smelters' enthusiasm for shipping increased, and the circulation supply was relatively sufficient, but the downstream purchased for rigid demand due to the high prices. Whether the contract could stand firm above 15,500 yuan/mt will be monitored tonight.

Tin: The most-liquid SHFE 2108 tin contract fell to a session low of 201,340 yuan/mt and finished the day 2.71% higher at 207,830 yuan/mt today. Open interest rose 4,277 lots to 41,143 lots. The market's worries about the shortage of spot supply supported the sharp rise of tin prices. Tin prices are expected to remain high in the near term. Pressure above will be seen from 201,000 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

14 hours ago

"Premier Li Qiang Leads State Council Meeting on Enhancing Effective Investment, Boosting Economic Growth"

Premier Li Qiang presided over an executive meeting of the State Council to study policy measures for promoting effective investment. The meeting noted that promoting effective investment plays an important role in stabilizing economic growth and strengthening momentum for development. It is necessary to innovate and improve policy measures, and intensify efforts to enhance the efficiency of utilizing funds such as central budget investments, ultra-long-term special treasury bonds, local government special bonds, and new-type policy-based financial instruments. In conjunction with formulating and implementing the 15th Five-Year Plan

14 hours ago

"Guided by Xi Jinping Thought, Implement 20th CPC Congress Spirit, Apply New Development Philosophy...

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the plenary sessions of the Party’s 20th Central Committee, fully and faithfully apply the new development philosophy, strengthen top-level design, build computing power interconnection nodes oriented toward national hub periods, major strategic regions, and key industries, establish a system of computing power interconnection nodes, improve the efficiency and service level of public computing power resources, and promote high-quality development of computing power.

14 hours ago

Indirect Iran-US Nuclear Talks in Muscat Show Progress, Omani FM Mediates Tense but Efficient Discussions

After intensive indirect consultations, the new round of nuclear talks between Iran and the US in Muscat, the capital of Oman, has achieved phased progress. It is reported that during this round of talks, the Iranian and US delegations did not meet directly. Instead, Omani Foreign Minister Badr acted as an intermediary, conveying a series of core proposals, strategic concerns, and policy positions to the other side. The atmosphere at the talks was tense yet efficient. According to preliminary on-site assessments, although both sides continue to negotiate over specific terms, they have reached a consensus on the key objective of "continuing dialogue."

14 hours ago