SMM Evening Comments (Jul 12): Shanghai nonferrous metals closed mostly higher as global markets sought fresh cues

Published: Jul 12, 2021 18:00 (GMT+8)

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SHFE nonferrous metals rose for the most part on Monday July 12 as global markets headed in different directions.

SHANGHAI, Jul 12 (SMM) – SHFE nonferrous metals rose for the most part on Monday July 12 as global markets headed in different directions.

Aluminium, the best performer, rose 1.28%, lead advanced 1.02%, nickel went up 0.8% and copper gained 0.51%, while tin fell 0.13% and zinc decreased 0.47%.

The ferrous complex rose across the board. Iron ore advanced 1.45%, rebar rose 1.42%, and hot-rolled coil climbed 1.44%.

Copper: The most-traded SHFE 2108 copper contract finished the day 0.51% higher at 68,980 yuan/mt. Open interest fell 573 lots to 114,819 lots.

Aluminium: The most-liquid SHFE 2108 aluminium contract finished the day 1.28% higher at 19,040 yuan/mt. Open interest rose 3,462 lots to 201,294 lots.

Zinc: The most-active SHFE 2108 zinc contract closed down 0.47% at 22,185 yuan/mt. Open interest fell 4,365 lots to 97,061 lots. SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei increased 1,700 mt from last Friday July 9 to 122,000 mt as of Monday July 12. The stocks were up 6,200 mt from July 5.

Nickel: The most-traded SHFE 2107 nickel contract ended the day 0.8% higher at 139,090 yuan/mt today. Open interest fell 22,944 lots to 133,766 lots.

Lead: The most-traded SHFE 2108 lead contract ended the day 1.02% higher at 15,895 yuan/mt. Open interest fell 345 lots to 60,119 lots. Smelter discount has not narrowed with the rise of lead, and the delivery brand's holder has a strong intention to deliver the position. Social inventories piled up in line with expectations. It is expected that there will be few circulating goods in the spot market on the eve of the delivery in July. The contract will test support from ten-day moving average and 15,800 yuan/mt.

Tin: The most-liquid SHFE 2108 tin contract fell to a session low of 216,320 yuan/mt and finished the day 0.13% lower at 216,860 yuan/mt today. Open interest fell 3,611 lots to 39,032 lots. Considering that the price trend is influenced by the interaction between fundamental supply and demand and speculation on capital, the contract fluctuate widely between 215,000-220,000 yuan/mt.

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.

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