• 08/08/2022 9:56 pm

MM Morning Comments (Jul 30): Shanghai base metals held onto overnight gains after Fed kept rates unchanged

Copper: Three-month LME copper firmed 0.11% to $6,476/mt in choppy trading on Wedneaday. It is expected to trade between $6,480-6,540/mt today.

The most-active SHFE September contract closed 0.25% higher at 52,010 yuan/mt in overnight trading. It is likely to move between 51,900-52,300 yuan/mt today. Spot premiums are seen stable at 30-90 yuan/mt. Spot gold prices and most of the base metals moved higher as US Fed kept rates on hold. Improved market sentiment will support copper prices.

Aluminium: The SHFE September contract jumped to 14,680 yuan/mt before fluctuating between 14,620-14,680 yuan/mt and closed at 14,655 yuan/mt in overnight trading. Inventories held largely unchanged, and open interest rose sharply in the recent two trading days. The contract is expected to trade between 14,400-14,800 yuan/mt today.

Three-month LME aluminium recouped earlier losses and ended at $1,727.5/mt on Wednesday. Open interest fell to 794,000 lots. It is likely to move between $1,710-1,750/mt today.

Zinc: Three-month LME zinc rose 1.54% to end at $2,302/mt on Wednesday, after hitting a six-month high of 2,307 earlier in the session. The prices registered three consecutive days of substantial gains despite continued increases in inventories. Data showed that zinc stocks across LME warehouses increased sharply for another day on Wednesday, jumping 8.37%, or 14,475 mt to 187,475 mt. LME zinc is expected to trade between $2,270-2,320/mt today.

The most-active SHFE September contract jumped 2.2% to 18,780 yuan/mt in overnight trading, after earlier scaling 18,895, its highest in eight months. The contract is expected to move between 18,500-19,000 yuan/mt today, while spot premiums for domestic 0# Shuangyan are seen slightly higher at 90-100 yuan/mt over the August contract.

Nickel: Three-month LME nickel was on a tear on Wednesday, climbing 1.61% to end at an intraday high of $13,920/mt, within striking distance of a five-month peak of 13,995 notched in the previous session. Whether it could break above the 14,000 mark will come under scrutiny today.

The most-active SHFE October contract strengthened 1.1% to 110,740 yuan/mt in overnight trading. It remains above the five-day moving average and pressure at 111,500 will come under scrutiny today.

Lead: Three-month LME lead reversed earlier losses to close 0.91% firmer at $1,878/mt on Wednesday.

The most-active SHFE September contract ended 0.84% higher at 15,605 yuan/mt in overnight trading. A prospect of improved fundamentals and tight spot supplies will keep the contract moving at high levels.

Tin: Three-month LME tin weakened 0.36% to $17,960/mt in choppy trading on Wednesday, coming off one-year highs. It is still supported by the five-day moving average at 179,000.

The SHFE October contract shed 1.08% to end at 146,800 yuan/mt in overnight trading. It still resides above the five-60 day moving averages and faces pressure at 148,000.

9:30 Live

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