China Shanghai Tankii Alloy Material Co.,Ltd Company News

SHANGHAI, Oct 15 (SMM) – Shanghai base metals were mixed on Friday morning amid tight global energy supply. Meanwhile, their counterparts on LME performed similarly. LME metals mostly closed higher in the intraday or overnight trading on Thursday. Copper rose 2.9%, lead advanced 2.93%, zinc gained 3.17%, and aluminium increased 2.75%. SHEF metals performed similarly on Thursday night. Copper won 2.6%, lead fell 0.36%, zinc rose 2.93%, and aluminium increased 0.9%. Copper: Three-month LME copper rose 2.9% to end at $10,000/mt last night, after hitting a record high of $10,024/mt. The most-traded SHFE 2111 copper contract increased 2.6% to end at 73,680 yuan/mt in overnight trading. The increase in CPI in the United States in September exceeded expectations, resuming the previous upward trend and highlighting the continued high inflation. The commodity prices increased amid the intensifying global energy crisis. Domestic social inventories have always been at a low level. The proportion of overseas cancelled warrants rose to 74.95% yesterday, with strong bullish sentiment. The trades thinned yesterday due to the Backwardation, SHFE copper prices are expected to move between 73,200-73,800 yuan/mt today, and LME copper will trade between $9,920-10,010/mt. Aluminium: Overnight, the most-traded SHFE 2111 aluminium contract opened at 23,880 yuan/mt, with the highest and lowest prices at 24,000 yuan/mt and 23,535 yuan/mt before closing at 23,670 yuan/mt, up 210 yuan/mt or 0.9%. Three-month LME aluminium opened at $3,055/mt on Thursday morning and ranged between $3,028-3,174/mt before closing at $3,139/mt, up $84/mt or 2.75%. The global energy supply is tight, and overseas power costs are high, keeping LME aluminium at a high level. The domestic downstream consumption weakened and inventories continued to accumulate, causing SHFE aluminium to underperform LME aluminium. It is expected that the SHFE 2111 aluminium contract will move between 23,400-23,800 yuan/mt today, and LME aluminium between $3,100-3,500/mt. Lead: Three-month LME lead rose 2.93% to end at $2,299.5/mt in the overnight trading. The most-traded SHFE 2111 lead contract fell 0.36% to end at 15,340 yuan/mt in overnight trading. Social inventory is likely to increase slightly this week, but the increment will be limited amid the maintenance of delivery brands and power rationing. The support of 15,250 yuan/mt on the lower side remains as the market focus. Zinc: Three-month LME zinc gained 3.17% to settle at $3,529.5/mt last night, with open interest increasing 2014 lots to 274,000 lots. Zinc stocks across LME-listed warehouses dropped by 1,475 mt or 0.77% to 189,600 mt. LME zinc prices are expected to move between $3,470-3,520/mt. The most-traded SHFE 2111 zinc contract rose 730 yuan/mt or 2.93% to 256,35 yuan/mt, with open interest increasing 7,634 lots to 213,000 lots. The global energy crisis continues to ferment, and the cost of overseas electricity has risen sharply, putting tremendous cost pressure on energy-consuming smelters. On the supply side, domestic and overseas smelters have reduced production due to power problems, triggering market concerns that more smelters will be affected in the future. In terms of demand, zinc prices rose 3,000 yuan/mt after the holiday. Rising zinc prices suppressed the downstream procurement. The SHFE 2111 contract is expected to move between 25,300-25,800 yuan/mt today and spot premiums for domestic #0 Shuangyan will be seen at 40-50 yuan/mt against the November contract. Nickel: Nickel prices rose from low levels yesterday. The transactions were active on the morning market, but weakened as the prices rebounded. The premiums of Russian nickel stood at 900-1,100 yuan/mt over the November contract, and the spot premiums of Jinchuan nickel fluctuated at 1,500-1,700 yuan/mt. Premiums of mainstream nickel briquette stood at 400-600 yuan/mt over the November contract, and continued to trend lower. The most-traded SHFE 2111 nickel contract gained 1.36% to close at 145,610 yuan/mt. The output at Nyrstar's zinc smelters has been reduced intraday, driving market sentiment to be bullish on zinc prices. SHFE zinc saw limit up. The non-ferrous metals followed the suit, especially nickel. Nickel sulphate prices fell to the breakeven point at some plants. There is new production line commissioning and its demand for nickel has been rising in the recent two months. Stainless steel’s demand for nickel fell slightly amid the power rationing. The two downstream sectors of nickel--stainless steel and new energy got rid of divergence, which is likely to push nickel prices to fluctuate strongly. Tin: SHFE tin rose before falling overnight and hovered around 280,000 yuan/mt. The spot market is tight, but there are expectations that supply will grow. There is uncertainty over the impact of power rationing on downstream demand. The recent high prices are supported by tight spot supply. The most-traded SHFE tin contract is expected to meet resistance at 284,000 yuan/mt and find support at 276,000 yuan/mt on Friday amid wait-and-see sentiment among longs and shorts.

SHANGHAI, Oct 12 (SMM) – Shanghai base metals basically trended higher on Tuesday morning amid extended power rationing. Meanwhile, their counterparts on LME mostly fell. LME metals basically closed higher in the intraday or overnight trading on Monday. Copper rose 1.94%, aluminium gained 1.79%, zinc won 1.69%, and lead fell 0.4%. SHFE metals performed similarly last night. Copper gained 1.07%, aluminium rose 2.21%, zinc won 1.88%, and lead dropped 0.64%. Copper: Three-month LME copper rose 1.94% last night to close at $9,531/mt after hitting the highest point at $9,570/mt, and is expected to trade between $9,400-9,500/mt today. The trading volume was 20,000 lots, and the open interest reached 260,000 lots. The SHFE 2111 copper contract inched gained 1.07% to close at 71,010 yuan/mt in the overnight trading after hitting $71,140 yuan/mt, and is expected to trade between 70,000-70,600 yuan/mt today, with spot premiums at 220-310 yuan/mt. The trading volume was 58,000 lots, and the open interest reached 144,000 lots last night. As the energy crisis intensified, global coal and natural gas inventories stood low, and their prices soared, boosting the demand for crude oil. US oil rose on Monday and closed above $80 for the first time in 7 years. In the spot market, the transaction was light. Traders did not intend to enter the market due to the high prices despite the wide Backwardation structure. A large amount of imported copper may arrive at the ports recently, and the high premiums may fall back. Aluminium: Three-month LME aluminium opened at $2,958.5/mt yesterday and closed at $3,042/mt, up 2.79%. Overnight, the most-traded SHFE 2111 aluminium contract opened at 23,300 yuan/mt and moved between 23,220-23,685 yuan/mt before closing at 23,545 yuan/mt, up 510 yuan/mt, or 2.21%. SMM data showed that the social inventory of aluminium ingots rose further to 864,000 mt on October 11. Aluminium plants are still affected by power rationing and their costs continue to rise. As such, aluminium prices still have strong upward momentum. It is expected that the most-traded SHFE 2111 aluminium contract will move between 23,500-34,000 yuan/mt today, and LME aluminium between $2,980-3,050/mt. Lead: Three-month LME lead opened at $2,224.5/mt last night, and fluctuated lower to $2,216/mt, before rebounding to hit the highest point at $2,249/mt. LME lead closed at $2,216/mt last night, down 0.4%. The market was waiting for the official announcement of US tapering the bond purchase in November, and the high US dollar index weighed on the base metal prices. Today’s focus will be whether the price will risk the support at $2,200/mt, and whether shorts will continue to add positions. The most-active SHFE 2111 lead contract opened at 14,805 yuan/mt last night, hitting the highest point at 14,980 yuan/mt, and closed at 14,900 yuan/mt, down 0.64%. Shorts continued to reduce positions for risk aversion, and SHFE lead was testing 15,000 yuan/mt. The power rationing is easing after the National Day holiday. Today’s focus will be the pressure at 15,000 yuan/mt. Zinc: LME zinc opened at $3,161/mt yesterday and fell to $3,126/mt before rebounding to $3,240/mt. LME zinc closed at $3,222/mt, up $53.5/mt or 1.69%. Trading volume was 15,000 lots, and open interest increased by 2,532 lots to 267,000 lots. LME zinc inventory decreased by 3,500 mt to 193,850 mt, a decrease of 1.77%. The market needs to pay attention to the operation of overseas smelters amid rising energy prices and shortages. LME zinc is expected to move at highs of $3,180-3,230/mt today. Overnight, the most-traded SHFE 2111 zinc contract opened at 23,450 yuan/mt and hit this year’s high at 23,880 yuan/mt before closing at 23,630 yuan/mt, up 435 yuan/mt or 1.88%. Trading volume rose to 239,000 lots, and open interest increased by 22,522 lots to 196,000 lots. Since September, the prices of natural gas and thermal coal in Europe and the United States have soared to record highs. The global energy crisis has intensified. Previously, a smelter in the Netherlands chose to reduce production due to the sharp rise in electricity prices, causing market concerns that more smelters overseas may follow suit. Meanwhile, Chinese zinc smelters are affected by power rationing, resulting in a decline in domestic output, which has also boosted bullish sentiment. SHFE zinc is expected to move at highs of 23,300-23,800 yuan/mt today amid market optimism. 0# domestic Shuangyan zinc will trade at premiums of 70-90 yuan/mt over the SHFE 2110 zinc contract. Tin: Overnight, SHFE tin pulled back and closed at above 280,000 yuan/mt, with open interest down more than 2,000 lots. The market supply is still tight. The output of tin ingots in September is estimated to fall 5% MoM, but the output in October is expected to increase by 11% MoM. The slight decrease in output in September led to tight market supply before and after the National Day. However, as output in October may grow, it is worth close attention whether downstream demand can match the higher output in the future. The most-traded SHFE tin contract is expected to meet resistance at 286,000 yuan/mt and find support at 280,000 yuan/mt today.

SHANGHAI, Sep 27 (SMM) - Shanghai nonferrous metals closed with mixed performance as the intensifying power rationing has been impacting both the upstream and downstream sectors. Shanghai copper gained 0.57%, aluminium fell 2.01%, lead was flat, zinc advanced 0.57%, tin plummeted 3.66%, and nickel slid 2.05%. Copper: The most-traded SHFE 2111 copper closed up 0.57% or 390 yuan/mt to 69270 yuan/mt, with open interest up 9694 lots to 114100 lots. On the macro front, US new housing sales in August rose 1.5% on the month, the highest in four months. The consumers’ long-run inflation expectations were still firmly contained according to the New York Federal Reserve. As such, the macro sentiment is relatively stable. On the fundamentals, domestic social inventory in mainstream markets fell 113,000 mt on the week to 92,200 mt, a new record low in the year, according to SMM, which offered some support to copper prices. Meanwhile, some smelters have been influenced by the power rationing. Therefore, the market shall closely watch the impact of power rationing on supply and demand as well pre-National Day holiday restocking. Tonight, the market shall keep an eye on the initial reading of the growth rate of US durable goods orders in August (estimated at 0.6% and finalised at -0.1% in the previous session). More new orders usually signal more manufacturing activities, which will benefit the US dollar index and pressure SHFE copper. Aluminium: The most-traded SHFE 2111 aluminium closed down 2.01% or 465 yuan/mt to 22725 yuan/mt, with open interest down 10650 lots to 282315 lots. The market supply of aluminium continued to fall in light of the intensifying energy consumption control policies, supporting aluminium prices. However, the social inventories of aluminium billet and aluminium have been on the rise, mainly caused by sluggish downstream demand amid surging prices and power rationing. Lead: The most-traded SHFE 2110 lead closed flat at 14495 yuan/mt, with open interest down 17322 lots to 38271 lots. The actual impact of power rationing on secondary lead was limited, but it somehow slowed down the increase in the inventory, especially in a time when the secondary lead quotes surged and once surpassed that of primary lead. The downstream sector actively restocked ahead of the National Day holiday, and the spot trades were modest. For primary lead, mainstream quotes were offered with premiums at 120 – 150 yuan/mt, and traders quoted with discounts at 40 – 0 yuan/mt over SHFE 2110 contract. According to SMM, the lead ingots inventory in the five major markets in China was flat from Friday September 24, and stood at 215,900 mt. The total inventory is expected to fall amid production reduction and pre-holiday restocking. Zinc: The most-traded SHFE 2111 zinc closed up 0.57% or 130 yuan/mt at 23020 yuan/mt, with open interest up 21346 lots to 113591 lots. The supply side has experienced great disruptions, especially in Yunan and Hunan where the power rationing has been intensive. Currently speaking, the impact of power rationing on the demand side has been limited, but the overall mid and downstream demand was still sluggish amid the high season. The operating rates of galvanising companies fell due to operating losses; while the production of die-casting zinc alloy plants was also subdued. Tin: The most-traded SHFE 2110 tin closed down 3.66% at 270340 yuan/mt, with open interest down 5400 lots. The daily chart trended down as long capitals chose to close the positions. On the fundamentals, the market saw more quotes from various brands and traders. And the recent massive power rationing is likely to impact the downstream demand in the short term. Technically speaking, the intraday plummet in futures prices could be seen as the result of the market’s fear over the surging prices in the past few trading days before the most-traded contract was shifted to SHFE 2111 tin. Nickel: The most-traded SHFE 2110 nickel closed down 2.05% or 2980 yuan/mt to 142470 yuan/mt, with open interest down 11917 lots to 43076 lots. The Fed indicated that the tapering of debt purchase will probably finish by mid-2022, and the interest hike may come earlier than expected, signalling hawkish stance. In China, the nickel ore inventory rose at a lower pace, thus the tight supply pattern remains. The demand from the downstream steel mills was sluggish amid frequent maintenance. While the new energy sector maintained its fast development, creating more demand for nickel briquette. The prices of nickel fell recently, prompting the downstream sector to purchase on the dip. Meanwhile, the inventory in China and overseas market has been falling, underpinning nickel prices.

SHANGHAI, May 25 (SMM) – Shanghai nonferrous metals traded mixed on Monday morning as investors continued to watch for developments from China’s National People’s Congress (NPC)—the country’s annual session of parliament.   The LME will be closed on Monday for a bank holiday. LME base metals, except for zinc, closed lower on Friday, with copper shedding 1.6% to lead the way down. Aluminium dropped 1.2%, nickel slipped 1.1%, lead fell 0.4% and tin dipped 0.1%.   Those metals on the SHFE moved mixed on Friday night. Nickel slid 1.5%, copper fell 0.6% and aluminium lost 0.1%, while zinc inched up 0.06%, lead advanced 0.5% and tin rose 0.8%.   Expectations into the NPC meetings were high among metal industry participants, particularly in regards to more expectations around stimulus. However so far there is little in the way of major new announcements, just more of a reconfirmation of existing supporting policies.   China said on Friday it would not publish an annual growth target for the first time. Beijing also pledged more government spending as the pandemic kept hammering the economy.   China also released draft legislation over new national security measures on Hong Kong after last year’s burst of anti-government protests in the city, which drew a warning from US President Donald Trump that Washington would react “very strongly,” and grew concerns over ties between the two powerhouses.   Copper: Three-month LME copper extended its decline to a low of $5,261.5/mt in European trading hours on Friday, before it recovered some ground to end 1.58% lower at $5,305/mt. The most active SHFE July contract touched a one-week low of 43,210 yuan/mt on Friday night, before it clawed back some losses to close 0.55% weaker at 43,490 yuan/mt. It is expected to move between 43,300-43,800 yuan/mt today, while spot premiums are expected to widen to 150-180 yuan/mt as futures prices have eased and it’s the last day for the delivery of long-term contracts.   Aluminium: Three-month LME aluminium slipped to an intraday low of $1,493/mt in European trading hours on Friday, before it recovered some ground to close the day 1.15% lower at $1,503.5/mt. It pulled back after two consecutive days of gains, failing to move out of its recent range. The most active SHFE July contract fluctuated to close 0.12% lower at 12,785 yuan/mt on Friday night. It is expected to move at 12,600-13,000 yuan/mt today. A slowdown in inventory decline, greater availability, narrower spot premiums and spreads between SHFE contracts led to the correction in SHFE aluminium, which received limited boost from the two sessions.   Zinc: Three-month LME zinc fell to a one-week trough of $1,948/mt in Asian trading hours on Friday, before it erased those losses to close up 0.81% at $1,985/mt. It bucked the downtrend across LME nonferrous metals, but failed to return above the 10-day moving average. Data showed that zinc stocks at LME-approved warehouses continued to decline, decreasing 0.23% or 250 mt to 106,575 mt as of May 22. Concerns over ore supply supported LME zinc prices. The most-liquid SHFE July contract climbed to a session-high of 16,515 yuan/mt on Friday night, before shorts dominated the market and sent the contract to close just a tad higher at 16,370 yuan/mt. Longs left the market with little in the way of major new announcements from China’s two sessions, contributing to the pull-back in prices. The July contract is likely to trade at 16,100-16,600 yuan/mt today, while spot premiums for domestic 0# Shuangyan are to steady at 140-150 yuan/mt over the SHFE June contract.   Nickel: Three-month LME nickel slid to a low of $12,105/mt in the final hour of the Asian trading session on Friday, and it later clawed back some losses to finish the day 1.13% lower at $12,280/mt. Whether it could stand convincingly above the 10-day moving average will come under scrutiny. The most-traded SHFE July contract rose on Friday night, rebounding from a lower open at 100,000 yuan/mt to close 1.49% lower at 101,180 yuan/mt.   Lead: Three-month LME lead slipped to a low of $1,612/mt in European trading hours on Friday, before it recouped some losses to close down 0.39% at $1,647.5/mt. LME lead underperformed its SHFE counterpart recently due to rising tensions between the US and China. The most-liquid SHFE July contract advanced 0.5% to 14,180 yuan/mt on Friday night, and is expected to remain strong in the near term.   Tin: Three-month LME tin plumbed a low of $15,150/mt in the final hour of the Asian trading session on Friday, and it later pared some losses to end just 0.1% lower at 15,380/mt. Support is still seen at $15,100/mt, while resistance is at $15,700/mt. The most-traded SHFE July contract rose 0.79% to 134,400 yuan/mt on Friday night as shorts covered their positions and some longs added their positions. Resistance is seen at a previous high of 136,000 yuan/mt.

SHANGHAI, Apr 29 (SMM) – This is a roundup of global macroeconomic news last night and what is expected in the day ahead. The US dollar fell for the second day on Tuesday as investors put pressure on safe-haven currencies as they eyed the Federal Reserve’s meeting and rebalanced portfolios ahead of the end of the month. Month-end rebalancing is negative for the greenback, with the US dollar likely to be sold against the euro, sterling, the Japanese yen and the Australian dollar, according to Mark McCormick, global head of FX strategy at TD Securities in Toronto. “We wouldn't draw too many conclusions about the state of the currency market over the next few sessions given the mingling of policy and technical drivers,” he said. LME base metals, except for tin and aluminium, closed higher Tuesday, with zinc leading the gains and rising 1.31%. Copper advanced 0.43%, nickel added 0.78%, lead increased 0.4%, while tin slipped 0.32% and aluminium shed 0.2%. SHFE nonferrous metals, except for aluminium, weakened on Tuesday, erasing gains from the broad rally on Monday. US stock futures rose slightly in overnight trading on Tuesday, with all eyes on the Fed’s monetary policy decision Wednesday. Optimism that countries across the globe are getting closer to reopening their economies has cheered stocks Gold declined for the third consecutive day on Tuesday, as the prospect of a gradual reopening of economies directed investors’ attention away from safe-haven assets. Gold futures for June delivery fell 0.1% to $1,721.30/ounce as of 2:35 p.m. EST on the Comex, after falling to an intraday low of $1,704.10 earlier. Spot gold fell below the $1,700 mark for the first time in almost a week but has since recovered to $1,707.60. Gold for June delivery on Comex lost $1.60, or 0.09%, to settle at $1,722.20 following a low at $1.704.10/ounce. On the data front, the American Petroleum Institute (API) estimated on Tuesday another large crude oil inventory build of 9.978 million barrels for the week ending April 24 as the demand collapse continues and storage space nears its upper limits. Official data showed that US wholesale inventories (preliminary reading) fell 1% on month in March, compared with an expected drop of 0.5%. The Conference Board's Consumer Confidence Index dropped to 86.9 in April, compared with the expected 87.9. Today, the US government will report first-quarter GDP growth. The Federal Reserve is expected to keep its benchmark interest rate unchanged at 0.00%-0.25%. Other key economic data slated for release today include the US PCE price index for the first quarter, its existing home sales for March, the eurozone consumer confidence index for April and the weekly crude oil change surveyed by the Energy Information Administration (EIA).  

SHANGHAI, Apr 20 (SMM) – SHFE nonferrous metals opened on a mixed note on Monday morning, following a broad rally last Friday, with nickel extending increases by as much as more than 2% on Monday. China cut its benchmark lending rate as expected on Monday to reduce borrowing costs for companies and provide support for the coronavirus-hit economy, which shrank for the first time on record in Q1. LME base metals closed mostly higher last Friday with nickel leading the gains and adding 2.64%. Copper advanced 1.83%, zinc increased 0.98%, tin climbed 0.7%, while aluminium shed 0.53% and lead slipped 0.8%. US stock futures traded lower on Sunday night as investors weighed the latest news on the coronavirus front along with another decline in crude prices. Crude oil futures fell on Sunday evening, extending last week's weakness on the back of falling demand amid the COVID-19 pandemic that has claimed more than 159,000 lives worldwide. Aluminium: Three-month LME aluminium lost gains from the Asian trading hours as investors loaded up shorts on fundamental weakness. It slipped from an intraday high of $1,534/mt, closing at $1,505/mt, down 0.53% on the day. Trading range today is seen at $1,490-1,540/mt, with the most-liquid SHFE contract trading at 12,300-12,480 yuan/mt. Continued declines in domestic aluminium inventories amid demand resumption will support SHFE aluminium. Zinc: Three-month LME zinc broke up pressure from the 40-day moving average in a broad rally of base metals. It lost steam after hitting a session high of $1,962.5/mt, trimming some gains and ended at $1,951/mt, up 0.98% on the day. LME zinc inventories shrank 850 mt on Friday to 98300 mt, still at high levels. The gradual recovery of overseas automakers will lift zinc consumption, but demand may not rise significantly as end-users have not shown signs of returning. The upsides of LME zinc will be limited, with trading range expected at $1,910-1,960/mt today. The most-active SHFE contract is seen trading at 15,700-16,200 yuan/mt today. Nickel: Three-month LME nickel extended its upward trend, testing pressure from $12,050/mt and finished 2.64% higher on the day at $12,070/mt. It broke resistance from the 40-day moving average, which lent some support to LME nickel. Today, LME nickel is expected to hover between the five- and 40- day moving averages with pressure from $12,250/mt. Lead: Three-month LME lead came off after rose to an intraday high of $1,708/mt, closing the day 0.8% lower at $1677/mt, with the 20-day moving average lending some support. There remain further downside risks in the short term. Tin: Three-month LME tin consolidated at high levels, climbing to a session high of $15,400/mt and ending 0.7% higher on the day at $15,175/mt. LME tin inventories shrank 85 mt on Friday to 6,590 mt. Today, support is seen from $15,000/mt, with pressure above from $15,700/mt.    

Data Analysis 08:31AM Source:SMM SHANGHAI, Apr 14 (SMM) – This is a roundup of global macroeconomic news last night and what is expected in the day ahead. The US dollar was roughly flat on Monday amid thin trades with Europe out on holiday. The dollar index, which tracks the greenback against a basket of other currencies, was little changed on the day and finished at 99.504. "The dollar rallied some overnight in holiday-thinned trade, though pulled back in light N.Y. trade on Monday. There was zero data on tap, and focus largely remained on virus developments," wrote analysts at Action Economics. The US dollar had given back some recent gains as the selling pressure against its key peers persisted over the last couple of weeks on eased market sentiment. However, the financial market remained cautious about the economic impact from the coronavirus as authorities imposed stricter measures to curb the spread of the virus. SHFE nonferrous metals closed mostly higher on Monday, with copper leading the gains with a rise of 1.5%. Tin rose 1.2%, zinc and lead climbed more than 0.9%, while aluminium dipped less than 0.1% and nickel fell 0.7%. The LME was closed Monday for the Easter Monday holiday, and trades will resume on Tuesday. Crude prices settled on a mixed note Monday, with global prices higher but US prices down as the weekend’s OPEC+ deal failed to soothe demand concerns. OPEC producers dominated by Saudi Arabia and allies led by Russia agreed on a deal on Sunday to cut production by nearly 10 million barrels per day from May. Analysts from Goldman Sachs and elsewhere said the OPEC+ move was “too little, too late” after weeks of a damaging price war between Saudi Arabia and Russia. US stocks closed mixed on Monday as investors gear up for the start of earnings season this week.   The coronavirus pandemic is expected to show up in companies’ first-quarter report cards, even though the virus didn’t shut down the US economy until mid-March. Gold, viewed as a safe haven, hit its highest level since 2012, up 1.2% on the day, as investors weighed expectations for further moves by central banks and fiscal policymakers to boost the global economy.   Key economic data slated for release on Tuesday include China’s trade balance for March, the US import price index for March and its weekly crude oil change surveyed by the American Petroleum Institute (API).  

SHANGHAI, Apr 7 (SMM) – Nickel mining in Surigao del Norte province, the Philippines has yet to resume, SMM learned, even as a large local miner said Monday its two units in the region will resume ore shipments.   In Surigao del Norte, which holds the Philippines' biggest nickel mines, measures to contain the spread of the COVID-19 pandemic are set to be ramped up after the first case was confirmed on Tuesday.   Nickel Asia Corp NIKL.PS, the Philippines' largest nickel ore miner and exporter, said on Monday its two units in Surigao del Norte province will resume ore shipments as the local government has allowed mining operations to resume, according to a Reuters report on the same day.   SMM learned from the agent of Nickel Asia that it is unlikely to be able to resume shipments before April 30. Mining operations in Surigao del Norte had been suspended from April 1 to prevent the coronavirus spreading.   The Philippines has extended a lockdown on Luzon island until the end of April, idling its economic engine and home to most of its population to counter the spread of coronavirus, the government said Tuesday. The quarantine that began in mid-March was set to end April 12.

SHANGHAI, Apr 7 (SMM) – Shanghai base metals cruised higher across the board in early morning trade on Tuesday, after returning from the holiday-extended weekend, as investor sentiment was improved by China’s RRR and IOER cuts and an overnight surge on Wall Street. Their counterparts in London also traded broadly higher.   On the SHFE, zinc was 3% higher to lead the gains, while copper was the biggest gainer on the LME with a more than 2% jump.   The People's Bank of China said late Friday it was cutting the amount of cash that small and mid-sized banks must hold as reserves by 100 basis points in two equal steps, the first effective as of April 15 and the second as of May 15, releasing around 400 billion yuan ($56.38 billion) in liquidity to shore up the virus-hit economy. In addition, the interest rates on financial institutions' excess reserves with the central bank would be reduced to 0.35% from 0.72%, effective April 7.   US stocks surged on Monday, and Treasury yields climbed as investors grew more hopeful that the peak in coronavirus cases could be reached soon.   Oil prices dropped on Monday as the OPEC+ alliance of oil producers announced it was delaying a meeting at which it could agree to a production cut.   Overnight on the LME, base metals, except for aluminium, closed higher. Tin jumped 1.6% on the day to lead the gains, copper rose 1.3%, lead climbed 1.2%, zinc advanced 0.9% and nickel gained 0.7%. The SHFE kept its night trading session suspended.   Copper: Three-month LME copper strengthened to close at $4,904.5/mt on Monday. Stimulus measures, coupled with growing concerns about copper mine supply with major producing countries entering state of emergency, bolstered copper prices. LME copper is expected to trade between $4,970-5,030/mt today, with SHFE copper at 40,300-40,900 yuan/mt. Spot premiums are seen at 130-150 yuan/mt amid market turmoil.   Aluminium: Three-month LME aluminium fell to its lowest since January 2016 at $1,459.5/mt in late European trading session, before it recovered some ground to close the day lower at $1,475/mt. LME aluminium is expected to move at $1,450-1,500/mt today, with the SHFE 2006 contract at 11,400-11,750 yuan/mt. Spot prices are seen at a discount of up to 10 yuan/mt to a premium of up to 10 yuan/mt.   Zinc: Three-month LME zinc rebounded in North American trading hours, reversing earlier losses to end the day higher at $1,898/mt. It was pressured by the middle Bollinger band but supported by the five- and 10-day moving averages. LME zinc is expected to move at $1,860-1,910/mt today, with the SHFE 2006 contract at 15,100-15,600 yuan/mt. Spot premiums for domestic 0# Shuangyan are seen slightly lower at 40-70 yuan/mt over the SHFE April contract.   Nickel: Three-month LME nickel fluctuated to close the day higher at $11,280/mt on Monday. Whether it could remain above $11,300/mt will come under scrutiny.   Lead: Three-month LME lead slipped to its lowest in more than a week at $1,639.5/mt in European trading hours, before it clawed back those losses to close the day higher at $1,680/mt.   Tin: Three-month LME tin climbed to end at an intraday high of $14,350/mt on Monday, snapping a three-day losing streak. Resistance is seen at the 20-day moving average at $14,600/mt.

SHANGHAI, Mar 30 (SMM) – London and Shanghai base metals cruised broadly lower in early morning trade on Monday, as investors continue to assess the economic impact of the global coronavirus pandemic that continues to spread rapidly.   Data compiled by Johns Hopkins University showed that the outbreak has already infected more than 720,000 worldwide and taken at least 33,925 lives. US President Donald Trump extended at a news conference Sunday the national social distancing guidelines to April 30.   Dismal economic data, which could shed some light on the fallout from the pandemic, released recently also dent investor sentiment.   With worsening pandemic furthering hurting demand and the Saudi Arabia-Russia price war showing no signs of abating, crude oil prices dropped in morning trade, extending last week’s losses, which also weighed on prices of base metals.   Trillions of dollars worth of stimulus efforts by governments and central banks, including a $2 trillion US package, to combat the economic impact from the coronavirus pandemic helped temper a rout in global markets last week. The Dow surged more than 12% to post its biggest weekly gain since 1938, while the US dollar staged its biggest weekly decline in four years.   On Friday, LME base metals, except for lead, closed higher. Tin surged more than 2% on the day to lead the gains, nickel jumped 1.8%, aluminium rose 0.8%, zinc advanced 0.5% and copper edged up 0.02%. Lead closed flat. The SHFE kept its night trading session suspended.   Closures of some mines in response to virus containment measures by governments also offered some support to prices of some metals.   Copper: Three-month LME copper recovered from earlier losses to end Friday trading a tad higher at $4,815/mt, to post a weekly gain of close to 2.5%. The contract tumbled 13.8% in the previous week, the biggest weekly decline in almost a decade. LME copper is expected to trade between $4,720-4,800/mt today, with SHFE copper at 38,300-38,900 yuan/mt. Spot premiums are seen at 50-100 yuan/mt as month-end financial settlement will dent purchasing enthusiasm.   Aluminium: Three-month LME aluminium rallied on Friday, snapping a nine-day losing streak. It closed the day at $1,552.5/mt, and registered a weekly decline of 1.6%. LME aluminium is expected to move between $1,520-1,560/mt today, with the most-active SHFE 2005 contract trading at 11,270-11,950 yuan/mt. East China spot discounts are seen at 100-80 yuan/mt against the SHFE 2004 contract, as the 2004-2005 spread is likely to flip into backwardation.   Zinc: Three-month LME zinc hit a one-week high of $1,904/mt in early European trading hours, before it eased to hover around the daily moving average to end the day at $1,874/mt, marking the fourth straight day of gains. It jumped 1.6% on the week, after a drop of 6.9% in the previous week. Closures of zinc mines are likely to lend some support to zinc prices, but concerns about the destruction to demand will limit the upside room. LME zinc is expected to consolidate at lows in the short term and move at $1,850-1,900/mt today. The most-traded SHFE May contract is expected to trade at 14,800-15,300 yuan/mt. Spot premiums for domestic 0# Shuangyan are seen unchanged at 20-40 yuan/mt over the SHFE April contract.   Nickel: Three-month LME nickel saw its gains accelerate in North American trading hours, finishing the day sharply higher at $11,420/mt, its highest close in nearly two weeks. It gained 0.79% on the week, after shedding nearly 8% in the prior week. LME nickel remains between the five- and 10-day moving averages.   Lead: Three-month LME lead jumped to its highest in nearly two weeks at $1,734.5/mt in North American trading session, before it erased all those gains to close the day flat at $1,692/mt. It gained 3.5% on the week, after a 6.7% decline in the previous week.   Tin: Three-month LME tin resumed its rally, strengthening to end at $14,280/mt, its highest close in nearly two weeks. It rose 5.4% on the week, after collapsing 14.2% in the prior week, its biggest weekly loss in almost a decade. LME tin has stood above the 10-day moving average, while faces resistance at $14,500-14,600/mt.    

Price Review Forecast 09:44AM Source:SMM   SHANGHAI, Mar 26 (SMM) – Shanghai base metals opened broadly higher on Thursday morning, as investors await the final Senate vote on the massive stimulus package aimed at combating the economic impact of the coronavirus and the emergency virtual summit of G20 leaders.   London base metals, meanwhile, cruised lower across the board. Tin dropped more than 2%, erasing gains from Wednesday’s jump.   Overnight on the LME, base metals, except for aluminium, closed higher overnight. Tin surged 6.3% on the day to lead the gains, lead jumped 2.5%, zinc advanced 1.2%, copper and nickel rose 0.5%. The SHFE kept its night trading session suspended.   News that the White House and Senate have reached agreement on the huge stimulus package, helped US stocks and oil prices extend their gains on Wednesday, while knocking the US dollar to its weakest in a week.   Copper: Three-month LME copper rose in North American trading hours, clawing back earlier losses to close the day higher at $4,872.5/mt, building on the sharp increase registered on Tuesday.   Aluminium: Three-month LME aluminium pulled back after the European trading session began. It touched its lowest since May 2016 at $1,535/mt before recovering some ground to end at $1,548/mt. LME aluminium bucked the uptrend across nonferrous metals on Wednesday. It is expected to continue to hover between $1,540-1,600/mt today, with the most-active SHFE 2005 contract trading at 11,350-12,000 yuan/mt. East China spot discounts are seen wider at 90-70 yuan/mt against the SHFE 2004 contract, as stimulus hopes and production cuts have bolstered Shanghai aluminium prices.   Zinc: Three-month LME zinc rose in North American trading hours, recouping losses from earlier in the day, to end at an intraday high of $1,849/mt. LME zinc has stood above the five-day moving average, but remains under the 10-day one. LME zinc is expected to hover at $1,810-1,860/mt today with the most-traded SHFE May contract at 14,600-15,100 yuan/mt. Spot premiums for domestic 0# Shuangyan are seen unchanged at 20-40 yuan/mt over the SHFE April contract. Nickel: Three-month LME nickel slipped below the five-day moving average to an intraday low of $11,100/mt in Asian trading hours, before it recovered to end at $11,335/mt, its highest close in a week. LME nickel has gained for two consecutive days but still faces pressure at $11,300/mt.   Lead: Three-month LME lead climbed in European and North American trading hours, recovering from earlier losses to close the day substantially higher at $1,648.5/mt, its highest close in a week.   Tin: Three-month LME tin surged in North American trading hours, hitting an intraday high of $14,350/mt before easing to end at $14,235/mt, near the 10-day moving average. Resistance is seen at $14,500/mt.

SHANGHAI, Dec 10 (SMM) – Copper: Copper prices continued their strong run overnight, as market euphoria over the upbeat US employment report has yet to fade and as the British pound strengthened on optimism that Thursday’s election will end near-term Brexit uncertainty. Three-month LME copper advanced 0.94% on the trading day to end at $6,081.5/mt, and the most active SHFE 2002 contract climbed 1.44% to end at a session-high of 48,720 yuan/mt overnight. Further upside potential in copper prices, however, will be hampered by worries about the US-China trade talks with a December 15 deadline looming for the next wave of US tariffs on Chinese goods to kick in. There was still cautious sentiment across the markets, as gold prices held around $1,465/oz and US stocks fell for the first time in four sessions on Monday. LME copper is expected to move between $6,050-6,100/mt today, with SHFE copper at 48,400-48,900 yuan/mt. Spot premiums are seen lower at 70-120 yuan/mt as prices of futures have increased. Aluminium: Three-month LME aluminium rebounded to an intraday high of $1,773.5/mt on Monday, before it erased those gains to close 0.11% weaker at $1,760.5/mt. The buildup of short positions primarily accounted for the losses. LME aluminium is expected to remain rangebound between $1,740-1,800/mt today. The most traded SHFE 2002 contract advanced 0.25% to 13,880 yuan/mt overnight, as longs added their positions. Bullish investors were moving to later-dated contracts. SHFE aluminium is expected to waver between 13,810-14,000 yuan/mt today. Spot premiums are seen at 30-50 yuan/mt over the SHFE 1912 contract. Zinc: Three-month LME zinc oscillated between gains and losses on Monday, subdued by the 10-day moving average but supported by the five-day one and the lower Bollinger band, and finished the trading day marginally lower at $2,238/mt. Zinc stocks across LME warehouses declined 0.89% on the day. LME zinc is expected to continue the rangebound pattern in the short term, as investors weigh hopes for a preliminary US-China trade deal against weak Chinese exports data. The contract is likely to move between $2,210-2,260/mt today. The most active SHFE 2002 contract opened lower and fluctuated to close 0.2% lower at 17,860 yuan/mt overnight. SMM data showed that social inventories of refined zinc in China declined 3,600 mt over the weekend to 126,300 mt. A weakening in recent orders for zinc alloy die-castings and temporary production restrictions on galvanising plants in Tianjin, however, will slow demand for zinc and limit upside in zinc prices. The SHFE 2002 contract is expected to trade between 17,700-18,100 yuan/mt today, and spot premiums for domestic 0# Shuangyan are seen lower at 200-250 yuan/mt over the SHFE 1912 contract. Nickel: Three-month LME nickel fell to an intraday low of $13,170/mt on Monday, before it recovered some ground to close down 1.26% at $13,320/mt. Whether LME nickel could remain above the five-day moving average will come under scrutiny today. The most traded SHFE 2002 contract recovered from initial losses to end 0.34% lower at 106,240 yuan/mt overnight. Resistance at the 10-day moving average will be closely monitored today. Lead: Three-month LME lead slipped to its lowest since July 5 at $1,865.5/mt on Monday, before it rallied to end 0.42% firmer at $1,897/mt. LME lead continued to weaken, in the absence of buying momentum. The most active SHFE 2001 contract held in a tight range around 15,105 yuan/mt overnight and closed a tad lower at 15,095 yuan/mt. There appeared to be signs of a pause to SHFE lead’s recent downtrend. Price spreads between primary and secondary lead should be closely watched. Tin: Three-month LME tin extended its gains on Monday, rising 0.32% to end at $17,100/mt. Resistance lies at a previous high of $17,200/mt. As longs aggressively loaded up positions, the most traded SHFE 2001 contract rapidly climbed to 141,170 yuan/mt, its highest since October 18, in early trade overnight. It later consolidated to end 0.65% stronger at 140,890 yuan/mt. Resistance is seen at 142,000 yuan/mt. Key Words: Morning comments Copper Aluminium Zinc Lead Nickel Tin tankii