SHANGHAI, Feb 20 (SMM) – Shanghai nonferrous metals closed mixed with the mixture of bulls and bears. On the macro front, the US dollar index remained strong recently, mainly due to better-than-expected United States economic readings and the Fed officials’ hawkish remarks, which reinforced expectations that the US would raise interest rate further. But the stimulus packages in China still made a solid floor for metals prices.
SHFE copper added 0.61%, aluminium rose 1.4%, lead gained 0.63%, zinc jumped 2.17%, tin lost 1.01%, and nickel slid 0.17%.
Copper: The most-traded SHFE 2303 copper closed up 0.61% or 420 yuan/mt at 69,400 yuan/mt, with open interest down 4,679 lots to 127,317 lots.
The spot premiums dropped after opening high, and once fell below 100 yuan/mt.
Aluminium: The most-traded SHFE 2303 aluminium closed up 1.4% or 260 yuan/mt at 18,775 yuan/mt, with open interest down 24,322 lots to 129,263 lots.
Aluminium smelters in Yunnan began to cut production, and aluminium ingot social inventory showed signs of destocking, boosting market sentiment. However, there are still many short-term uncertainties. Whether the US Fed’s stance over interest rate hike will turn hawkish again and whether the inventory of aluminium ingots will sustain decline are important factors that will affect the movement of aluminium prices. It is expected that short-term aluminium prices will remain volatile and relatively strong.
Lead: The most-traded SHFE 2303 lead closed up 0.63% or 95 yuan/mt at 15,220 yuan/mt, with open interest down 2,659 lots to 56,912 lots.
The spot prices changed little from last week, and downstream players purchased on demand, and favoured primary lead when second lead prices were high.
Zinc: The most-traded SHFE 2303 zinc closed up 2.17% or 495 yuan/mt at 23,355 yuan/mt, with open interest down 9,972 lots to 64,637 lots.
Market inquiries were not active as SHFE zinc rose today, and the successful transactions were mostly between the traders. The overall market was lacklustre.
Tin: The most-traded SHFE 2303 tin closed down 1.01% or 2,160 yuan/mt at 211,820 yuan/mt, with open interest up 3,164 lots to 48,538 lots.
In the spot market, the spot prices rose slightly, and the discounts of some brands narrowed slightly. The overall market transactions improved. SHFE warrants inventory dropped drastically by 758 mt to 7,586 mt.
Nickel: The most-traded SHFE 2303 nickel closed down 0.17% or 350 yuan/mt at 204,500 yuan/mt, with open interest down 4,974 lots to 54,073 lots.
In the spot market, Jinchuan nickel was in premiums of 7,200-7,500 yuan/mt, with an average of 7,350 yuan/mt, down 400 yuan/mt from the previous trading day. NORNICKEL nickel was in premiums of 5,000-5,500 yuan/mt, with an average of 5,150 yuan/mt, flat. The upstream players were normal in making shipments though SHFE nickel dropped constantly on rising supply, and the spot premiums dropped as a result. For nickel briquette, the prices stood between 204,500-205,600 yuan/mt, down 4,000 yuan/mt on a daily basis.
[Disclaimer: The above representation and data is based on market information SMM believes to be reliable at the time of acquiring as well as the comprehensive assessment by SMM research team, and any and all information provided in this article is for reference only. This article does not constitute a direct recommendation for investment or any decisions in any form and clients shall act on their own discreet and any decisions made by clients are not within the responsibility of SMM.]
