SHANGHAI, Mar 26 (SMM) – Nonferrous metals faced pressure from a potential trade war as SHFE nickel led the loss with a drop of over 3%. Copper fell after losing support at 50,000 yuan/mt and closed 2.5% lower. Aluminium, lead, and tin edged down, while zinc inched up.
The ferrous complex remained weak. Coke slid over 3%, rebar lost nearly 3%, hot-rolled coil fell over 2% and iron ore dipped almost 2%. Only coking coal edged up slightly.
Copper: The SHFE 1805 contract fell below 48,800 yuan/mt and the weekly moving average today. The downward trend is likely to remain in the short term.
Aluminium: Inventories declined and the SHFE aluminium contract traded weakly today. The contract is likely to remain weak. Destocking activity and simmering trade tensions between China and the US will give more guidance to the market.
Zinc: SHFE zinc climbed up from a low of 24,320 yuan/mt during the day. We expect it to consolidate tonight given mixed sentiments, and it is unlikely to break the 25,000 yuan/mt level.
Nickel: Nickel led losses in nonferrous metals today as it fell to a low of 96,230 yuan/mt and closed at 95,900 yuan/mt. We see it trading rangebound with downward room tonight.
Tin: Tin traded rangebound at low levels levels today and we see support at 140,000 yuan/mt tonight.
Lead: SHFE lead traded mostly below the moving averages during the day and we expect it to test support at 18,300 yuan/mt level and to trade rangebound tonight.
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