SMM Evening Comments (Jan 15): Nonferrous metals on the SHFE closed mostly higher, Nickel gained 1.19%

SHANGHAI, Nov 27 (SMM) – SHFE nonferrous metals increased broadly on Friday January 15. Aluminium added 0.92%, lead advanced 0.4%, nickel firmed 1.19% and tin rose 0.35%, while copper edged down 0.09% and zinc shed 1.67%.

Copper: The most-liquid SHFE 2103 copper contract edged down 0.09% to end the day at 58,690 yuan/mt, with open interest rising 6,508 lots to 122,000 lots.

President-elect Joe Biden on Thursday unveiled the details of a $1.9 trillion coronavirus rescue package designed to support households and businesses through the pandemic. The proposal, called the American Rescue Plan, includes several familiar stimulus measures in the hope the additional fiscal support will sustain U.S. families and firms until the Covid-19 vaccine is widely available. The plan is the first of two major spending initiatives Biden will seek in the first few months of his presidency, according to senior Biden officials. The second bill, expected in February, will tackle the president-elect’s longer-term goals of creating jobs, reforming infrastructure, combating climate change and advancing racial equity.

Germany’s economy contracted by 5% in 2020, according to full-year GDP (gross domestic product) data released on Thursday. Coronavirus cases have prompted several lockdowns on public life and economic activity in Germany. Chancellor Angela Merkel announced last week that the latest lockdown would be extended until the end of the month.

US first-time claims for unemployment insurance jumped to 965,000 last week amid signs of a slowdown in hiring due to pandemic restrictions, the Labor Department reported Thursday. The total was worse than Wall Street estimates of 800,000 and above the previous week’s total of 784,000.

US retail sales and producer price index (PPI) for December set for release tonight will be watched, and whether the March contract could steady above 59,000 yuan/mt tonight will also be watched.

Aluminium: The most-traded SHFE 2103 aluminium contract finished the day 0.92% higher at 14,875 yuan/mt, with open interest rising 9,076 lots to 139,000 lots. It is expected to move between 14,850-14,950 yuan/mt tonight.

Zinc: The most-active SHFE 2103 zinc contract closed the day 1.67% lower at 20,290 yuan/mt, a new low in 2021, with open interest decreasing 4,162 lots to 51,812 lots. Zinc consumption continued to weaken as downstream users started the Chinese New Year holiday in advance due to the resurgence of coronavirus in north China, which pressured zinc prices. Support below from the 20,000 mark will be watched tonight.

Nickel: The most-liquid SHFE 2103 nickel contract rose 1.19% to close the day at 132,390 yuan/mt after hitting a new high since October 28, 2019 at 136,500 yuan/mt earlier in the session.

Lead: The most-traded SHFE 2103 lead contract finished the day 0.4% higher at 14,905 yuan/mt, with open interest rising 1,516 lots to 31,781 lots. It will test support from 14,900 mark tonight. 
 

Tin: The most-liquid SHFE 2103 tin contract added 0.35% to close the day at 153,680 yuan/mt, with open interest rising 252 lots to 32,088 lots.