SMM Evening Comments (Feb 14): Shanghai Nonferrous Metals Closed Mostly with Gains ahead of US CPI Date

SHANGHAI, Feb 14 (SMM) – Shanghai nonferrous metals closed mostly with gains in day trading. The market expects the January unadjusted US CPI annual rate to fall, and the recent market trading atmosphere is relatively cautious. The US dollar index dropped, offering support to metals prices.

SHFE copper added 0.78%, aluminium rose 0.32%, lead grew 0.2%, zinc gained 0.72%, tin dropped 0.66%, and nickel slid 2.04%.

Copper: The most-traded SHFE 2303 copper closed up 0.78% or 530 yuan/mt at 68,680 yuan/mt, with open interest down 116 lots to 146,144 lots.

The spot premiums were relatively stable compared with the previous few trading days, so were the traded prices of mainstream copper.

Aluminium: The most-traded SHFE 2303 aluminium closed up 0.32% or 60 yuan/mt at 18,595 yuan/mt, with open interest down 1,174 lots to 171,342 lots.

At present, there has been no substantial progress in reducing production on the supply side. Aluminium ingot inventory remained in accumulation cycle. Under the background of supply cuts and weaker-than-expected demand recovery, it is difficult for aluminium prices to have upward momentum. It is expected that aluminium prices will remain rangebound in the short term.

Lead: The most-traded SHFE 2303 lead closed up 0.2% or 30 yuan/mt at 15,270 yuan/mt, with open interest down 3,667 lots to 57,176 lots.

The cargo holders’ shipments were modest with SHFE lead bottoming out. The spot cargoes circulating in the market dropped as SHFE 2302 will be delivered tomorrow. The downstream players’ risk aversion sentiment eased, the purchased as needed. The transactions in the spot market were relatively good.

Zinc: The most-traded SHFE 2303 zinc closed up 0.72% or 165 yuan/mt at 23,180 yuan/mt, with open interest down 3,999 lots to 81,521 lots.

SHFE zinc rose on falling US dollar index. The capitals were wait-and-see as the recovery and resilient of consumption were both unclear.

Tin: The most-traded SHFE 2303 tin closed down 0.66% or 1,440 yuan/mt at 215,480 yuan/mt, with open interest up 215 lots to 49,023 lots.

The spot prices changed little, and the overall sales of traders were poor. SHFE warrants inventory added 687 mt to 8,482 mt.

Nickel: The most-traded SHFE 2303 nickel closed down 2.04% or 4,310 yuan/mt at 207,190 yuan/mt, with open interest down 4,490 lots to 61,066 lots.

In the spot market, Jinchuan nickel was in premiums of 7,500-7,800 yuan/mt, with average of 7,650 yuan/mt, up 400 yuan/mt on a daily basis. NORNICKEL nickel was in premiums of 5,200-5,500 yuan/mt, with an average of 5,350 yuan/mt, down 200 yuan/mt. The upstream players were eager to make shipments as nickel price fell constantly, and market inquiries picked up. For nickel briquette, the prices stood between 209,000-209,600 yuan/mt, down 1,850 yuan/mt.

[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.]