SHANGHAI, May 7 (SMM) – SHFE nonferrous metals closed mostly higher on Friday May 7. Copper rose 2.63%, aluminium surged 2.93%, zinc jumped 2.33%, nickel gained 1.2%, lead advanced 2.44%, and tin added 0.29%.
Copper: The most-traded SHFE 2106 copper contract increased 2.63% to finish the day at 74,900 yuan/mt, with open interest adding 125 lots to 160,000 lots.
The number of initial jobless claims in the United States last week stood at 498,000, which dropped to a new low during the pandemic period, indicating that the labor market was recovering steadily. The Bank of England kept its monetary policy unchanged during its May 2021 meeting, and announced a slowdown in the pace of purchases of British government bonds to £3.4 billion per week, from £4.4 billion previously, signaling it is on course to end emergency support later this year.
Aluminium: The most-active SHFE 2106 aluminium contract surged 2.93% to close the day at 19,855 yuan/mt, with open interest decreasing 10,512 lots to 271,000 lots.
Zinc: The most-liquid SHFE 2106 zinc contract ended the day 2.33% higher at 22,415 yuan/mt, with open interest rising 3,526 lots to 91,328 lots. Zinc prices trended higher amid positive US jobless data and domestic trade data. However, zinc ingot supply is expected to increase in May as profits expanded, and high zinc prices also depressed consumption.
Nickel: The most-traded SHFE 2106 nickel contract finished the day 1.2% firmer at 133,670 yuan/mt, with open interest losing 1,409 lots to 128,000 lots.
Lead: The most-active SHFE 2106 lead contract jumped 2.44% to close the day at 15,755 yuan/mt, with open interest adding 3,846 lots to 55,340 lots. Social inventories of lead ingots across Shanghai, Guangdong, Zhejiang, Jiangsu and Tianjin expanded 4,100 mt from last Friday April 30 to 66,700 mt as of May 7. This was largely unchanged from Monday April 26. Whether the contract could steady above 15,700 yuan/mt tonight will be watched.
Tin: The most-liquid SHFE 2107 tin contract added 0.29% to end the day at 198,160 yuan/mt, with open interest rising 780 lots to 29,848 lots, and it is expected to move between 193,000-200,000 yuan/mt tonight.
