SHANGHAI, Jun 11 (SMM) – Nonferrous metals saw mixed trading on Monday June 11. SHFE nickel led losses and closed 0.79% lower. Tin dipped 0.52%, and aluminium inched down. Zinc, lead, and copper went up slightly.
The ferrous complex gained for the most part. Iron ore rose 0.64%. Rebar and hot-rolled coil inched up, while coking coal lost 0.76% and coke edged down.
Copper: The SHFE 1808 contract declined to a low of 54,000 yuan/mt after it soared last week. It fell below the daily moving average as bullish sentiment eased when it appeared that the Escondida union in Chile is likely to reach a deal. The contract is expected to test support at 54,000 yuan/mt tonight. Investors would look for more cues from China's financial data in May, including social financing and M2 money supply.
Aluminium: The SHFE 1808 contract mostly hovered at 14,875-14,945 yuan/mt during the day and closed at 14,915 yuan/mt with open interests down 664 lots to 699,540 lots. Lacking incentives, it is expected to continue its rangebound trend in the short run.
Zinc: The SHFE 1808 contract moved in line with its LME counterpart with limited support from fundamentals in the domestic market. The contract rebounded from a low of 24,270 yuan/mt and closed at 24,445 yuan/mt, 185 yuan/mt higher from last Friday. It is expected to trade along the upper Bollinger bands tonight with pressure at 24,500 yuan/mt.
Nickel: The SHFE 1809 contract hovered around the 116,120 yuan/mt in the morning after it reached a high of 116,880 yuan/mt. As shorts were no longer squeezed, the contract fell and consolidated around the 115,700 yuan/mt level under the daily moving average. We expect it to trade weakly rangebound tonight.
Lead: Buoyed by longs, the SHFE 1807 contract surged to a high of 20,595 yuan/mt before noon. It inched down to hover at 20,535 yuan/mt in the afternoon as most base metals weakened. We see an upward trend in the contract tonight with pressure at the five-day moving average. Investors would take guidance from the movement of LME lead and US dollar tonight.
Tin: After it dipped to a low of 151,630 yuan/mt in the morning, the SHFE 1809 contract mostly traded rangebound at 152,100 yuan/mt during the day. Trading volume declined 10,920 lots to 26,188 lots. It is likely to hover at current levels with pressure tonight.
For editorial queries, please contact Daisy Tseng at daisy@smm.cn
For more information on how to access our research reports, please email service.en@smm.cn