Exclusive: SMM Morning Comments (Dec 25)
Copper: LME copper has finished higher for 13 consecutive days which showed the optimism over global economy in the Western markets. However, with LME closed today, the SHFE is unlikely to see major movement. We expect the 1802 copper contract to trade at 54,500-55,000 yuan/mt today. Spot market remained oversupplied with discount at 270-200 yuan/mt today.
Zinc: SHFE zinc is set to be rangebound today at 25,350-25,800 yuan/mt without the guidance of LME zinc.
Nickel: SHFE nickel is supported by various moving averages and it is expected to trade at 95,200-97,800 yuan/mt today. Spot prices, on the other hand, are likely to traded at 94,800-97,000 yuan/mt.
Tin: SHFE tin is expected to trade at 137,000-139,000 yuan/mt. Higher futures price is also set to support spot price at an expected level of 138,500-139,500 yuan/mt today.
Aluminium: The main contract of SHFE aluminium is expected to trade at 14,700-15,000 yuan/mt, testing the resistance at 15,000 yuan/mt. Spot discounts are getting deeper at 310-270 yuan/mt.
Lead: SHFE lead is trading at the 10-day moving average level with upper resistance at 19,200 yuan/mt support at 19,000 yuan/mt. It is expected to be rangebound today.