SMM Evening Comments (Apr 8): Shanghai nonferrous metals ended mixed after the S&P 500 nudged higher to a record closing high overnight

SHANGHAI, Apr 8 (SMM) – SHFE nonferrous metals closed mixed on Thursday April 8 after the S&P 500 nudged higher to a record closing high overnight.

Nickel, the best performer, rose 0.86%, zinc advanced 0.75% and aluminium went up 0.26%, while copper edged down 0.37%, tin fell 0.95% and lead weakened 0.2%.

Operating rates of blast furnaces at steel mills dropped 0.3 percentage point from a week ago and 1 percentage point from a month ago to 84% as of April 8, SMM survey showed.

The ferrous complex fell across the board. Hot-rolled coil went down 1.68%, iron ore shed 0.56%, and rebar fell 0.23%.

Copper: The most-traded SHFE 2105 copper contract finished the day 0.37% lower at 66,850 yuan/mt. Open interest fell 5,864 lots to 117,460 lots.

Aluminium: The most-liquid SHFE 2105 aluminium contract finished the day 0.26% higher at 17,525 yuan/mt. Open interest fell 3,747 lots to 190,383 lots. SMM data showed that aluminium billet stocks across the five major consumption areas — Foshan, Wuxi, Huzhou, Changzhou and Nanchang — in China decreased 6.6% or 12,800 mt from a week ago to 181,000 mt as of Thursday April 8.

Zinc: The most-active SHFE 2105 zinc contract closed up 0.75% at 22,020 yuan/mt. Open interest rose 7,922 lots to 84,346 lots. China's refined zinc output stood at 496,900 mt in March, up 5.44% or 25,600 mt on the month and up 6.49% on the year.

Nickel: The most-traded SHFE 2106 nickel contract ended the day 0.86% higher at 126,690 yuan/mt today. Open interest rose 10,522 lots to 170,805 lots.

Lead: The most-traded SHFE 2105 lead contract ended the day 0.2% lower at 14,885 yuan/mt. Open interest fell 1,893 lots to 45,237 lots.

Tin: The most-liquid SHFE 2106 tin contract fell to a session low of 181,340 yuan/mt and finished the day 0.95% lower at 183,100 yuan/mt today. Open interest fell 933 lots to 33,926 lots. The expectation of tight tin raw materials in Yunnan has been digested by the market, and Indonesia's tin export growth in March eased the global shortage. It is expected that the contract will keep fluctuating in the near term. Pressure above will be seen from 185,000 yuan/mt today. Support below will be seen from 177,000 yuan/mt today.