SHANGHAI, Mar 27 (SMM) –
Copper: Copper prices fell at a slower pace overnight and are likely to inch up today as the US dollar softened and concerns of a trade war eased. LME copper is expected to trade at $6,610-6,670/mt today. The SHFE 1805 contract is seen trading at 48,800-49,300 yuan/mt with ample supply and sluggish demand. Spot discounts are seen at 210-140 yuan/mt.
Aluminium: LME aluminium continued to weaken overnight, and we expect this to continue. We see it trading at $2,035-2,060/mt today. As investors reduced their positions, we saw an outflor of funds in the Shanghai market. We expect SHFE aluminium to trade at 13,650-13,850 yuan/mt with spot discounts at 110-70 yuan/mt, as recent tension between China and the US overshadowed fundamentals in directing the market.
Zinc: Given the weak US dollar index and an increase in cancelled warrants, LME zinc climbed up from lows but met resistance from the moving averages. We see limited upward room expect it to trade at $3,235-3,285/mt today. SHFE zinc broke the 10-day moving average but met resistance at the 25,000 yuan/mt level overnight. We expect it to trade at 24,650-25,100 yuan/mt today. The 0# common brand will trade at a discount of 30 yuan/mt to a premium of 10 yuan/mt and Shuangyan brand will trade at a discount of 20 yuan/mt to a premium of 20 yuan/mt.
Nickel: Nickel gained support from upbeat sentiments overnight but still faced pressure from several moving averages. We expect LME nickel to trade rangebound and the SHFE 1805 contract at 96,000-98,000 yuan/mt today. We see spot prices at 95,500-97,500 yuan/mt.
Tin: A weaker US dollar drove up LME tin overnight. SHFE tin also rose slightly but failed to stand above the five-day moving average. Supported by LME tin, SHFE tin is expected to trade rangebound at 142,000-143,000 yuan/mt today.
Lead: Amid a bullish sentiment, LME lead stood above the five- and 10-day moving averages and reached a high of $2,393/mt overnight. It is expected to gain futher and test $2,400/mt today. SHFE lead also gained overnight but with weaker momentum than LME lead. We see it testing resistance at 18,500 yuan/mt today.
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