SHANGHAI, Dec 28 (SMM)－
Copper: LME Copper appeared to be unstoppable as it surged to a near three-year high while SHFE investors continued to add long positions. Bullish sentiment remained in the western markets as copper prices were trading up during the night sessions for more than a week. We see the momentum likely to continue with support of the copper scrap policy. LME copper is expected to trade at $7,200-7,250/mt today and the SHFE 1803 copper at 55,300-55,800 yuan/mt.
Aluminium: The rising LME aluminium is likely to take a break today, trading at $2,230-2,260/mt. The main contract of SHFE aluminium would test the 15,000 yuan/mt level, trading at 14,700-15,000 yuan/mt. Spot discount, on the other hand, is set to go deeper at 370-330 yuan/mt today.
Nickel: We see LME nickel trading at the five-day moving average level with firm support, with the SHFE 1805 contract at 94,200-96,000 yuan/mt. Spot prices are seen at 93,700-95,200 yuan/mt.
Zinc: LME zinc is unlikely to break the $3,275/mt level it achieved before the Christmas holiday without support on the fundamentals. SHFE zinc is also under the pressure with weak physical market and tighter capital flows. We expect to see SHFE zinc at 25,250-25,700 yuan/mt today.
Tin: LME tin is set to test and break the resistance at $19,700/mt, while the SHFE 1805 tin is expected to trade at 142,000-144,000 yuan/mt today after wandering around the 40-day moving average last night. Spot price is also stable at 139,000-141,500 yuan/mt.
Lead: SHFE lead traded above all moving averages and we expect it to maintain rangebound trading at high level today.
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