SHANGHAI, Sep 15 (SMM) – Shanghai nonferrous metals mostly closed in the negative territory for two days in a row. And the SHFE 2109 contracts completed delivery today.
Shanghai copper lost 0.73%, aluminium slid 1.25%, lead dropped 1.91%, zinc fell 0.62%, tin rose 0.91%, and nickel edged down 0.18%.
Copper: The most-traded SHFE 2110 copper closed down 0.73% or 510 yuan/mt to 69810 yuan/mt, with open interest down 4173 lots to 120700 lots.
On the daily chart, backwardation of SHFE 09 – 10 spread once surged to 240 yuan/mt, and turned to Contango and fall to 180 yuan/mt. Positions of back-month contracts like 2201 and 2202 increased mildly.
On the macro front, the growth of overnight US CPI in August fell short of expectations, partly easing the uptrend of inflation rate. However, the investors’ worries over economic recovery under the resurging COVID-19 has surpassed that of inflation. In China, the industrial value-added for August fell back to 5.3%, while the consumption reading was also less than expected, indicating that the recovery progress of China economy is slowing down.
Tonight, the market shall watch the Fed manufacturing index for September. A better-than-estimate reading will boost US dollar index.
Aluminium: The most-traded SHFE 2110 aluminium closed down 1.25% or 285 yuan/mt to 22495 yuan/mt, with open interest down 47601 lots to 186000 lots. There were significant changes on the macro and fundamental front, and the supply is still expected to fall further amid sustained power energy control, power and coal shortage, etc. The downstream sector is dominated by wait-and-see attitude.
Lead: The most-traded SHFE 2110 lead closed down 1.91% or 285 yuan/mt to 14660 yuan/mt, with open interest up 6062 lots to 86956 lots. Primary lead smelters reduced their quotes for small orders amid falling lead prices, with rare shipments. The downstream was basically wait-and-see for fear of further decline in prices. While domestic social inventories of lead ingots is still likely to rise after SHFE 2109 finished settlement today.
Zinc: The most-traded SHFE 2110 zinc closed down 0.62% or 140 yuan/mt at 22575 yuan/mt, with open interest down 10641 lots to 80370 lots. On the fundamentals, the Director of the National Energy Administration went on a field study in Guangxi to understand the operation and power supply in the region. But it remained uncertain as whether the power rationing will intensify in the future. For warrants, premiums in Tianjin were narrow, which attracted a large number of registered warrants, while those in Shanghai and Guangdong were close to zero.
Tin: The most-traded SHFE 2110 tin closed up 0.91% at 256360 yuan/mt, with open interest down 2160 lots. On the fundamentals, upstream supply will stay sufficient. While downstream demand is unlikely to pick up even in seasonal high in September and October.
Nickel: The most-traded SHFE 2110 nickel closed down 0.18% or 270 yuan/mt at 146870 yuan/mt, with open interest down 8566 lots to 101758 lots. On the fundamentals, prices of nickel ores stood high, and ferronickel mills reduced their production due to power rationing and energy consumption control. Nickel prices trended higher even on the bearish factor of output cut of stainless steel.
Tonight, the market shall watch the EIA oil inventory in the week ended September 10.