SHANGHAI, Feb 23 (SMM) – Nonferrous metals futures on the SHFE performed strongly today except for tin, which edged down slightly. Nickel gained some 2% while copper was up 1.6%. Aluminium went up 1.5%, and zinc and lead inched up.
Ferrous metals prices rose across the board as coke jumped close to 3% and iron ore increased by over 2%. Rebar and coking coal went up close to 2% and hot-rolled coil was up close to 1%.
Copper: SHFE copper contracts saw an inflow of 700 million yuan today as investors added to their long bets. We expect the 1804 contract to test resistance at the 60-day moving average tonight.
Aluminium: The strong performance of ferrous metals gave firm support to SHFE aluminium as it hit a high at 14,930 yuan/mt during the day. We see aluminium to rebound in the medium term due to the anticipation of de-stocking as demand enters the high season. However, resistance may remain at the 20-day moving average.
Zinc: With limited funds in the market, SHFE zinc came off from highs and stayed rangebound at daily moving average during the day. We expect such trading pattern to continue as the contract looks for support level.
Nickel: A 625-million-yuan fund inflow gave great confidence to SHFE nickel during the day, which is expected to be rangebound at high levels tonight. Investors would also look out for eurozone’s consumer price index (CPI) tonight.
Tin: SHFE tin is expected to be rangebound at 146,000 yuan/mt level with some resistance in the short term.
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