SMM Evening Comments (Nov 17): Shanghai Nonferrous Metals Closed Mixed

SHANGHAI, Nov 17 (SMM) – Shanghai nonferrous metals closed mixed without significant events recently.

Shanghai copper fell 0.27%, aluminium added 0.56%, lead lost 1.76%, zinc advanced 0.25%, tin slid 0.95%, and nickel shed 2.42%.

Copper: The most-traded SHFE 2212 copper closed down 0.27% or 180 yuan/mt at 66,510 yuan/mt, with open interest down 8,977 lots to 158,047 lots.

In the spot market, SHFE 2212 and 2301 spread narrowed after the delivery of SHFE 2211, but the warrants have not yet entered the market in large amount. And market players mostly stood on the sidelines. The premiums of mainstream standard-quality copper stood at 370-400 yuan/mt early trade, and then fell to 370-380 yuan/mt in the first trading session with widening SHFE 2212 and 2301 spread.

Aluminium: The most-traded SHFE 2212 aluminium closed up 0.56% or 105 yuan/mt at 19,015 yuan/mt, with open interest up 1,729 lots to 179,706 lots.

On the backdrop of easing macro sentiment, the demand side was boosted to some extent with relaxing domestic pandemic control as well as supporting real estate policies. SHFE aluminium is likely to carry momentum in the near term. In addition, some major consuming areas were in short supply with cargoes still in transport. Concentrated arrivals of aluminium ingot and billet can be expected with the restoration of transportation in north-west China.

Lead: The most-traded SHFE 2212 lead closed down 1.76% or 280 yuan/mt at 15,635 yuan/mt, with open interest down 12,551 lots to 48,537 lots.

SHFE fell today, and the discounts offered by cargo holders expanded with more sources available in the market. And some traders agreed to wide discounts. However, downstream players still mainly sourced primary or secondary lead under long-term orders, and the spot market transactions improved slightly. Short-term SHFE lead is likely to fall.

Zinc: The most-traded SHFE 2212 zinc closed up 0.25% or 60 yuan/mt at 24,420 yuan/mt, with open interest down 2,653 lots to 86,639 lots.

Downstream consumption picked up slightly as zinc price once fell in day trading, but the overall transactions were muted as absolute zinc price remained high.

Tin: The most-traded SHFE 2212 tin closed down 0.95% or 1,780 yuan/mt at 186,000 yuan/mt, with open interest up 1,701 lots to 46,127 lots.

In the spot market, imported tin was favoured by downstream players that had rigid demand due to greater discounts following centralised arrival. And the market shipment picked up. SHFE warrants added 251 mt to 3,498 mt, while LME tin inventory fell 20 mt to 3,455 mt.

Nickel: The most-traded SHFE 2212 nickel closed down 2.42% or 5,020 yuan/mt at 202,520 yuan/mt, with open interest down 9,826 lots to 65,657 lots.

In the spot market, Jinchuan nickel was in premiums of 3,500-3,800 yuan/mt, with an average of 3,650 yuan/mt, flat from a day ago. NORNICKEL nickel was in premiums of 2,000-3,000 yuan/mt, with an average of 2,150 yuan/mt, up 150 yuan/mt from the previous trading day. SHFE nickel slumped overnight, and the import window was still closed, hence the premiums of NORNICKEL nickel rebounded. Though the absolute spot prices fell, it failed to boost market transactions. For nickel briquette, the prices stood at 200,200-200,900 yuan/mt, down 5,450 yuan/mt on a daily basis.

[Disclaimer: The above representation and data is based on market information SMM believes to be reliable at the time of acquiring as well as the comprehensive assessment by SMM research team, and any and all information provided in this article is for reference only. This article does not constitute a direct recommendation for investment or any decisions in any form and clients shall act on their own discreet and any decisions made by clients are not within the responsibility of SMM.]