SMM Evening Comments (Mar 31): Shanghai Nonferrous Metals Closed Mostly with Losses as US Initial Jobless Claims Beat Expectations

SHANGHAI, Mar 31 (SMM) - Shanghai nonferrous metals closed mostly with losses in day trading. On the macro front, the US initial jobless claims in the week ending March 25 came in at 198,000, higher than the forecast of 196,000. China’s official manufacturing PMI for March was released at 51.9, higher than the previous print 51.5 but lower than expected 52.6.

SHFE copper fell 0.72%, aluminium gained 0.03%, lead inched lower 0.07%, zinc lost 0.55%, tin expanded 1.52%, and nickel dropped 1.86%.

Copper: The most-traded SHFE 2305 copper closed down 0.72% or 500 yuan/mt at 69,200 yuan/mt, with open interest down 1,295 lots to 172,624 lots.

In the last trading day of this week, this month and this quarter, the transactions in spot market were scarce. There were few sellers in the market, but some traders still quoted low to purchases actively. Nevertheless, most goods holders held firm to their prices as they awaited the arrival of a new quarter. It is expected that spot trading will improve next week.

Aluminium: The most-traded SHFE 2305 aluminium closed up 0.03% or 5 yuan/mt at 18,715 yuan/mt, with open interest up 896 lots to 219,903 lots.

In the spot market, market players were not enthusiastic about restocking amid rising aluminium prices. The spot premiums in south China narrowed as goods holders were eager to promote sales, but the transactions were dismal.

Lead: The most-traded SHFE 2305 lead closed down 0.07% or 10 yuan/mt at 15,285 yuan/mt, with open interest down 1,067 lots to 53,564 lots.

As SHFE lead prices moved sideways, cargo holders refrained from selling and held quotes stead. Downstream enterprises were not interested in enquiring prices, leading to a depressed market.

Zinc: The most-traded SHFE 2305 zinc closed down 0.55% or 125 yuan/mt at 22,765 yuan/mt, with open interest down 805 lots to 96,413 lots.

Zinc prices dropped slightly today, which improved the trading in the market. Some downstream enterprises restocked as needed as the weekend neared.

Tin: The most-traded SHFE 2305 tin closed up 1.52% or 3,120 yuan/mt at 208,520 yuan/mt, with open interest down 1,928 lots to 56,568 lots.

Nickel: The most-traded SHFE 2305 nickel closed down 1.86% or 3,310 yuan/mt at 174,170 yuan/mt, with open interest up 1,840 lots to 79,306 lots.

In the spot market, Jinchuan nickel was quoted in premiums of 5,500-5,800 yuan/mt, with an average of 5,650 yuan/mt, flat from the previous trading day. NORNICKEL nickel was in premiums of 2,500-2,700 yuan/mt, with an average of 2,600 yuan/mt, unchanged from the prior trading day. SHFE nickel prices dipped slightly, followed by spot prices. For nickel briquette, the prices stood between 179,600-180,000 yuan/mt, down 800 yuan/mt from the previous trading day.

[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.]