SMM Evening Comments (Jan 23)

SHANGHAI, Jan 23 (SMM)? 1/4 ?

Copper: It appears to be difficult for SHFE copper to break through its several moving averages as physical demand remained sluggish ahead of Chinese New Year due to tighter cash. However, copper prices are unlikely to fall much considering tighter supply of copper ore and copper scrap. We expect prices to be rangebound in the near term.

Aluminium: We maintain our view that SHFE aluminium would stay rangebound in the near term and we recommend shorting when prices pick up.

Nickel: SHFE nickel rallied on news of a 6.4 magnitude earthquake in Indonesia, closing 1.7% higher from a day earlier. The impact of the earthquake is likely to set the tone for the night trading session.

Tin: SHFE tin rallied towards 147,000 yuan/mt today and is expected to challenge this level in the short term.

Zinc: SHFE zinc is expected to trade at around 26,100 yuan/mt tonight with fundamentals little changed and investors being cautious.

Lead: SHFE lead moved higher today and is expected to seek upward momentum tonight.

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