SMM Evening Comments (Mar 13): Shanghai Nonferrous Metals Closed Mostly with Losses on Higher-than-expected US Non-farm Payrolls

Published: Mar 13, 2023 18:00 (GMT+8)
Source: SMM
On the macro front, the US non-farm payrolls after seasonal adjustment came in at 311,000, higher than the expected 205,000. The US unemployment rate in February recorded 3.6%, higher than the previous print of 3.4%. The bankrupcy of Silicon Valley Bank weighed on US dollar index.

SHANGHAI, Mar 13 (SMM) - Shanghai nonferrous metals closed mostly with losses in day trading. On the macro front, the US non-farm payrolls after seasonal adjustment came in at 311,000, higher than the expected 205,000. The US unemployment rate in February recorded 3.6%, higher than the previous print of 3.4%. The collapse of Silicon Valley Bank weighed on US dollar index.

SHFE copper added 0.19 %, aluminium gained 0.38%, lead edged down 0.10%, zinc declined 0.45%, tin dropped 0.47%, and nickel shed 2.65%.

Copper: The most-traded SHFE 2304 copper closed up 0.19% or 130 yuan/mt at 69,270 yuan/mt, with open interest down 1,581 lots to 145,271 lots.

In the spot market, goods holders still held prices firm amid the backwardation structure of SHFE copper near-month contract, but downstream enterprises mainly purchased as needed. The inquiries improved, but transactions declined.

Aluminium: The most-traded SHFE 2304 aluminium closed up 0.38% or 70 yuan/mt at 18,435 yuan/mt, with open interest down 2,509 lots to 193,559 lots.

In terms of fundamentals, the positive impact from aluminium production reduction in Yunnan has been basically digested by the market. Downstream production was recovering slowly in the peak season, and social inventories of aluminium ingots have not entered destocking cycle. Lower alumina prices diminished cost support to aluminium prices, which may fluctuate weakly in the short term.   

Lead: The most-traded SHFE 2304 lead closed down 0.10% or 15 yuan/mt at 15,150 yuan/mt, with open interest up 1,435 lots to 69,698 lots.

In the spot market of secondary lead, most enterprises were still reluctant to quote, leading to thin trades in the spot market. The falling lead prices caused secondary lead prices to stay firm, but downstream lead-acid battery enterprises still preferred primary lead due to rather narrow price spread.  

Zinc: The most-traded SHFE 2304 zinc closed down 0.45% or 105 yuan/mt at 22,985 yuan/mt, with open interest up 548 lots to 85,310 lots.

As zinc prices dropped today, downstream buyers were boosted to increase purchases, but traders were cautious in quoting. The market transactions improved slightly.

Tin: The most-traded SHFE 2304 tin closed down 0.47% or 890 yuan/mt at 188,880 yuan/mt, with open interest up 1,793 lots to 77,521 lots.

As tin prices hover at lows, most smelters were tough on prices and held back from selling. Most downstream enterprises already finished restocking last Friday, and others took wait-and-see stance based on bearish sentiment. I

Nickel: The most-traded SHFE 2304 nickel closed down 2.65% or 4860 yuan/mt at 178,300 yuan/mt, with open interest down 5,976 lots to 75,836 lots.

In the spot market, Jinchuan nickel was quoted in premiums of 6,500-7,700 yuan/mt, with an average of 7,100 yuan/mt, up 200 yuan/mt on a daily basis. NORNICKEL nickel was in premiums of 2,500-2,600 yuan/mt, with an average of 2,550 yuan/mt, up 50 yuan/mt. Nickel futures continued to fluctuate while spot prices barely changed. The trading in the market was slack. For nickel briquette, the prices stood between 176,900-177,900 yuan/mt, down 5,150 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.]

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.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
KGHM and South32 launch US$725m Sierra Gorda expansion, lifting copper capacity 26%
18 hours ago
KGHM and South32 launch US$725m Sierra Gorda expansion, lifting copper capacity 26%
Read More
KGHM and South32 launch US$725m Sierra Gorda expansion, lifting copper capacity 26%
KGHM and South32 launch US$725m Sierra Gorda expansion, lifting copper capacity 26%
KGHM and South32 have broken ground on a fourth grinding line at the Sierra Gorda copper-molybdenum mine in Chile's Atacama region. The US$725 million expansion runs for three years from January 2027, with completion by late 2029 and full output in H2 2030. Ore processing capacity rises 26%, from 131,000 tonnes per day to 165,000 tpd. Annual copper output is projected to climb from 165,000 tonnes in 2025 to 195,000 tonnes, with 6,000 tonnes of molybdenum, 58,000 ounces of gold and 1.7 million ounces of silver as by-products. The project creates over 900 direct jobs and is funded from operating cash flow and debt. Unit operating costs are expected to fall about 10%.
18 hours ago
Emerita Extends Final Review of Iberian Belt West PFS, Release Expected in Coming Weeks
19 hours ago
Emerita Extends Final Review of Iberian Belt West PFS, Release Expected in Coming Weeks
Read More
Emerita Extends Final Review of Iberian Belt West PFS, Release Expected in Coming Weeks
Emerita Extends Final Review of Iberian Belt West PFS, Release Expected in Coming Weeks
Emerita Resources has provided an update on the Preliminary Feasibility Study (PFS) for its Iberian Belt West polymetallic project in Spain, saying the study is well advanced but remains under final technical review.​ The company said the review process has been expanded to include additional technical and quality-assurance oversight before publication. As a result, Emerita now expects the PFS to be released in the coming weeks rather than within the previously indicated timeframe.​ Iberian Belt West hosts copper, zinc, lead, gold and silver mineralization and is one of Emerita’s principal development-stage assets in Spain. The PFS is expected to provide updated detail on the proposed mine plan, processing configuration, capital requirements, operating costs and project economics.​ Emerita said the additional review work is intended to ensure consistency and completeness across the technical disciplines contributing to the study before it is finalized.​ The company did not announce a revised specific publication date, and no new production, capital or economic figures were disclosed in the latest update.​ The extended review delays the next major technical milestone for Iberian Belt West, but the company continues to indicate that the PFS is nearing completion. For the copper market, the significance of the study will depend on the production profile and project economics ultimately disclosed, particularly the contribution of copper relative to the project’s other payable metals. Attention will therefore remain on the timing of the PFS release and whether the final study materially changes the project’s development outlook.
19 hours ago
Cascadia Intersects 75.55 m at 1.19% Cu at Carmacks Copper-Gold Project
19 hours ago
Cascadia Intersects 75.55 m at 1.19% Cu at Carmacks Copper-Gold Project
Read More
Cascadia Intersects 75.55 m at 1.19% Cu at Carmacks Copper-Gold Project
Cascadia Intersects 75.55 m at 1.19% Cu at Carmacks Copper-Gold Project
Cascadia Minerals has reported additional drill results from its 2026 exploration programme at the Carmacks copper-gold project in Yukon, Canada, with new step-out drilling extending mineralization at Zone 2000S beyond the boundaries of the existing Mineral Resource.​ Drill hole CD-26-058 returned 75.55 metres grading 1.19% copper, 0.97 g/t gold, 10.4 g/t silver and 335 ppm molybdenum, equivalent to 2.18% copper-equivalent. The interval included 48.66 metres grading 1.61% copper, 1.39 g/t gold, 15.1 g/t silver and 475 ppm molybdenum, equivalent to 3.03% CuEq.​ Within the same hole, a higher-grade interval of 14.50 metres returned 2.30% copper, 2.68 g/t gold, 29.5 g/t silver and 1,015 ppm molybdenum, equivalent to 5.08% CuEq.​ A second hole, CD-26-059, intersected 93.99 metres grading 0.96% copper, 0.70 g/t gold, 4.6 g/t silver and 919 ppm molybdenum, equivalent to 1.94% CuEq. This included 63.97 metres at 1.26% copper, 0.96 g/t gold, 6.3 g/t silver and 1,049 ppm molybdenum, equivalent to 2.52% CuEq.​ Cascadia said the latest results continue to expand mineralization at Zone 2000S beyond the limits of the current Mineral Resource and highlight the higher-grade nature of the extension. The reported drill intervals represent drilled thicknesses, with true widths estimated at approximately 60–70%.​ The latest step-out results indicate that copper-gold mineralization at Zone 2000S extends beyond the boundaries of the current Carmacks Mineral Resource. The broad intervals and higher-grade internal zones could support future resource expansion if additional drilling confirms continuity. However, the new intersections have not yet been incorporated into an updated Mineral Resource Estimate, meaning their ultimate impact on project scale and mine planning remains to be determined.
19 hours ago