SMM Evening Comments (Jan 19): Shanghai Nonferrous Metals Closed Mostly with Gains on Weak US Dollar

Published: Jan 19, 2023 18:00
On the evening of January 18, the US retailed sales monthly rate stood at -1.1% in December, below the previous reading of -0.6%. Hence the US dollar index dropped.

SHANGHAI, Jan 19 (SMM) – Shanghai nonferrous metals closed mostly with gains in day trading. On the evening of January 18, the US retailed sales monthly rate stood at -1.1% in December, below the previous reading of -0.6%. Hence the US dollar index dropped.

Shanghai copper inched down 0.03%, aluminium rose 1.38%, lead fell 0.46%, zinc added 0.31%, tin grew 0.79%, and nickel climbed 4.63%.

Copper: The most-traded SHFE 2303 copper closed down 0.03% or 20 yuan/mt at 69,680 yuan/mt, with open interest down 9,348 lots to 188,881 lots.

The spot market was quiet in the second to the last trading day before Chinese New Year (CNY), but there were still some traders in operation. On the whole, the market was quiet. The mainstream standard-quality was in discounts of 70-30 yuan/mt.

Aluminium: The most-traded SHFE 2303 aluminium closed up 1.38% or 260 yuan/mt at 19,070 yuan/mt, with open interest down 798 lots to 192,683 lots.

Many regions in China have passed the peak of pandemic outbreak. Market players became increasingly optimistic over demand recovery after the Chinese New Year. As longs take an upper hand over shorts, SHFE aluminium may go up slowly in the short term.

Lead: The most-traded SHFE 2303 lead closed down 0.46% or 70 yuan/mt at 15,285 yuan/mt, with open interest up 2,080 lots to 81,742 lots.

There were few quotations in the spot market as most downstream players are on holiday, coupled with the halting logistics services.

Zinc: The most-traded SHFE 2303 zinc closed up 0.31% or 75 yuan/mt at 24,340 yuan/mt, with open interest up 1,567 lots to 98,127 lots.

There were almost no successful trades in the market amid strong holiday atmosphere.

Tin: The most-traded SHFE 2303 tin closed up 0.79% or 1,790 yuan/mt at 228,630 yuan/mt, with open interest down 2,270 lots to 42,389 lots.

The market transactions stalled today. SHFE warrants inventory stood unchanged at 6,436 mt.

Nickel: The most-traded SHFE 2302 nickel closed up 4.63% or 9,490 yuan/mt at 214,420 yuan/mt, with open interest down 2,243 lots to 24,216 lots.

In the spot market, Jinchuan nickel was in premiums of 11,000-12,000 yuan/mt, with an average of 11,500 yuan/mt, up 1,000 yuan/mt on a daily basis. NORNICKEL nickel was in premiums of 5,500-6,500 yuan/mt, with an average of 6,000 yuan/mt, down 700 yuan/mt from the previous trading day. SHFE nickel rose palpably today with the activeness of capitals, and absolute spot prices rebounded amid falling spot premiums. For nickel briquette, the prices stood between 215,900-216,900 yuan/mt, up 6,500 yuan/mt from a day ago.

[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.]

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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