SMM Evening Comments (Jan 5): Shanghai nonferrous metals rose across the board on Tuesday

SHANGHAI, Jan 5 (SMM) – SHFE nonferrous metals all closed higher on Tuesday January 5. Tin, the best performer, surged 3.59% to lead the gains, copper edged up 0.1%, aluminium added 0.46%, zinc rose 1.39%, lead advanced 0.57% and nickel gained 2.18%.

SMM data showed that a total of 82 vessels carrying 14.26 million mt of iron ore arrived at major Chinese ports during December 27-January 2, SMM estimates. This was up 820,000 mt from the previous week, and basically the same as last year. Arrivals at Tangshan and Shandong ports all increased slightly on the week.

Copper: The most-traded SHFE 2102 copper contract inched up 0.1% to close the day at 58,110 yuan/mt, with open interest losing 391 lots to 96,490 lots. The United States is averaging more than 2,600 deaths each day, according to data from Johns Hopkins University. England imposed a third coronavirus lockdown as the region grapples with a more transmissible variant of Covid-19. China’s manufacturing purchasing managers’ index (PMI) stood at 53 in December, down 1.9 points from November, remaining in expansion. The US dollar index fell slightly on Tuesday, which supported copper prices. US ISM manufacturing PMI for December set for release tonight will be monitored, and whether the February copper contract could steady above 58,000 yuan/mt tonight will also be watched.

Zinc: The most-liquid SHFE 2102 zinc contract finished the day 1.39% higher at 21,150 yuan/mt, with open interest decreasing 1,926 lots to 76,375 lots. Weaker US dollar index underpinned zinc prices. SHFE zinc is expected to continue to fluctuate range-bound tonight.

Nickel: The most-traded SHFE 2103 nickel contract jumped 2.18% to end the day at 129,580 yuan/mt.

Lead: The most-active SHFE 2102 lead contract added 0.57% to end the day at 15,010 yuan/mt after hitting a more than three-week high at 15,185 yuan/mt earlier in the session, with open interest losing 1,970 lots to 27,749 lots. Tepid consumption pressured SHFE lead, but expectations of pre-holiday restocking and upbeat sentiment supported lead prices. The February contract is expected to fluctuate above the 40-day moving average in the near term.

Tin: The most-traded SHFE 2103 tin contract surged 3.59% to finish the day at 159,050 yuan/mt, after hitting an all-time high at 159,800 yuan/mt earlier in the session, with open interest rising 5,994 lots to 40,087 lots. Pressure above will be seen from the 160,000 mark tonight.