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SMM Evening Comments (Jul 8): Shanghai nonferrous metals closed mixed, Ni rose 1.59%
Jul 8,2021 18:37CST
SMM Comments
Source:SMM
SHFE nonferrous metals ended mixed today, and prices fluctuated within narrow ranges.

SHANGHAI, Jul 8 (SMM) – SHFE nonferrous metals ended mixed today, and prices fluctuated within narrow ranges.

Nickel, the best performer, rose 1.59%, copper increased 0.07%, zinc went up 0.05, and tin gained 0.35%, while aluminium dropped 0.74% and lead fell 0.51%.

Ferrous complex closed mixed. Iron ore fell 2.94%, rebar rose 0.99%, and HRC increased 1.43%.

Copper: The most traded SHFE 2108 copper contract inched up 0.07% to end at 68,740 yuan/mt today, with open interest down 1,028 lots to 115,000 lots.

Goldman Sachs expected the possibility of Fed’s carrying out interest hike before 2024 to be over 50%. US 30-year treasury yield fell to a new low in the past five months, and the 10-year treasury yield fell to 1.28%, the lowest point since February 18. The market still focused on US economic recovery, and tonight’s weekly initial jobless claims is worth attention.

Aluminium: The most liquid SHFE 2108 aluminium contract dropped 0.74% to end at 18,755 yuan/mt today, with open interest down 9,246 lots to 201,819 lots.

Lead: The most active SHFE 2108 lead contract ended 0.51% lower at 15,725 yuan/mt today, with open interest losing 3,063 lots to 59,702 lots.

Spot trade weakened with the falling futures prices, and downstream users were cautious in purchase. The inventory pressure on smelters increased slightly. The newly expanded storage capacities are expected to be filled soon. Lead ingot supply still exceeds the demand amid weak consumption. LME lead fails to stabilise at $2,300/mt, and the falling LME lead dragged down SHFE lead today. Whether LEM lead will stop falling is worth attention, and the focus tonight will be the support at 10-day moving average and 15,700 yuan/mt.

Zinc: The most traded SHFE 2108 zinc contract gained 0.02% to close at 22,190 yuan/mt today, with open interest down 7,176 lots to 92,701 lots.

Nickel: The most active SHFE 2108 nickel contract advanced 1.59% to close at 137,050 yuan/mt today, with open interest down 6,484 lots to 115,184 lots.

Tin: The most traded SHFE 2108 tin contract closed 0.35% higher at 216,850 yuan/mt today, with open interest down 802 lots to 39,670 lots.

SHFE Tin fluctuated within a narrow range today, and is likely to keep fluctuating in the short term as investors are more wait-and-see on the market. The prices are in an adjustment stage in the long-term upward trend, and is unlikely to fall with the fundamental support. The August contract is expected to remain volatile at high levels before the funds enter the market again.

Evening comments
Copper
Aluminium
Lead
Zinc
Nickel
Tin

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