SHANGHAI, Jan 31 (SMM) – Shanghai nonferrous metals closed with losses. On the macro front, the market players are keen on the US interest rate resolution to be released on the early morning of Thursday. Meanwhile, China’s official manufacturing PMI for January exceeded expectations.
SHFE copper dropped 0.65%, aluminium lost 0.76%, lead fell 0.52%, zinc inched up 0.06%, tin lost 1.99%, and nickel grew 1.45%.
Copper: The most-traded SHFE 2303 copper closed down 0.65% or 450 yuan/mt at 69,240 yuan/mt, with open interest down 1,712 lots to 175,820 lots.
The spot market was still muted, and the spot premiums fell again after opening high.
Aluminium: The most-traded SHFE 2303 aluminium closed down 0.76% or 145 yuan/mt at 18,925 yuan/mt, with open interest up 893 lots to 195,165 lots.
The confidence of bulls was somehow diminished following continuous rise of aluminium prices, leading to a pullback. But expectations for demand improvement should keep SHFE aluminium firm. In the near future, market players will pay close attention to the pace of consumption recovery and evolution of overseas interest rate hikes.
Lead: The most-traded SHFE 2303 lead closed down 0.52% or 80 yuan/mt at 15,210 yuan/mt, with open interest up 1,633 lots to 82,392 lots.
In the spot market, the cargo holders quoted based on the market dynamics, and the offers were relatively firm. The downstream players resumed the production one after another, but the demand for lead ingot was muted as they still had the inventory. Sources from smelters with large discounts were relatively more popular.
Zinc: The most-traded SHFE 2303 zinc closed up 0.06% or 15 yuan/mt at 24,300 yuan/mt, with open interest down 956 lots to 98,246 lots.
The downstream players mostly purchased on demand as zinc prices were high today, and the market weakened palpably from yesterday. Meanwhile, the social inventory remained high as the cargoes arrived intensively after the CNY holiday.
Tin: The most-traded SHFE 2303 tin closed down 1.99% or 4,740 yuan/mt at 233,940 yuan/mt, with open interest down 3,810 lots to 33,611 lots.
In the spot market, SHFE tin price kept falling, and the transactions were lacklustre as some players have not yet resumed the production. SHFE warrants inventory added 14 mt to 6,438 mt.
Nickel: The most-traded SHFE 2303 nickel closed up 1.45% or 3,190 yuan/mt at 222,540 yuan/mt, with open interest up 7,383 lots to 75,841 lots.
In the spot market, Jinchuan nickel was in premiums of 8,000-9,000 yuan/mt, with an average of 8,500 yuan/mt, down 2,000 yuan/mt from a day ago. NORNICKEL nickel was in premiums of 7,500-9,000 yuan/mt, with an average of 8,250 yuan/mt, up 2,500 yuan/mt from the previous trading day. SHFE nickel remained high in morning trade, and the absolute spot prices were comparatively high though the premiums fell. For nickel briquette, the prices stood between 228,700-229,200 yuan/mt, up 2,650 yuan/mt from the previous trading day.
[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.]
