SHFE nonferrous metals fell across the board on Monday, as continued tensions between the US and China dampened market sentiment, and the better-than-expected US non-farm payrolls and jobless claims released last Friday boosted US dollar.
On the SHFE, nickel dropped 1.72%, zinc fell 1%, lead weakened 1.61%, tin shed 1.42%, copper plunged 2.33%, and aluminum declined 0.93%.
Domestic zinc ingot output is likely to return to high levels as surging zinc prices and rebounding zinc treatment charges encouraged smelters to produce. But optimism on consumption will support SHFE zinc.
Optimistic outlook on lead-acid battery consumption may bolster lead prices. Operating rates at lead-acid battery makers stood at 72.1% in the week ended August 7, gaining 2.47 percentage points on the week, an SMM survey showed, and are expected to rise further in August, giving support to lead prices.
SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei shrank 9,400 mt from last Friday August 7 to 182,700 mt as of Monday August 10. The stocks were down 19,200 mt from last Monday August 3.