SMM Morning Comments (Jan 25)

SHANGHAI, Jan 25 (SMM)? 1/4 ?

Copper: The market is monitoring SHFE copper to see if it reaches 54,000 yuan/mt today. LME copper is expected to trade at $7,050-7,200/mt while SHFE 1803 is to trade at 53,500-54,200 yuan/mt. Spot discounts are expected at 120-70 yuan/mt.

Aluminium: LME aluminium performed poorer than other base metals, testing support at $2,250/mt, and is expected to trade at $2,215-2,260/mt today. SHFE aluminium will trade at 14,600-14,800 yuan/mt. We see spot discounts at 160-120 yuan/mt.

Nickel: LME nickel is expected to keep rangebound at a high level while SHFE 1805 is expected to trade at 102,000-104,500 yuan/mt with spot prices at 101,700-104,000 yuan/mt.

Zinc: LME zinc is bolstered by a weak US dollar and is expected to trade at $3,415-3,465/mt while SHFE zinc is expected to trade at 25,950-26,400 yuan/mt on weak fundamentals. The interest rate decision of  the European Central Bank is likely to give guidance to the market today.

Lead: SHFE lead has limited upward momentum and is expected to keep rangebound at a high level today.

Tin: LME tin broke through $21,000 yuan/mt, moving towards $21,300/mt, while SHFE tin is aiming at 150,000 yuan/mt and is expected to trade at 147,000-148,000 yuan/mt today. We see spot prices at 145,500-147,000 yuan/mt.

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