SHANGHAI, Feb 22 (SMM) – Nonferrous metals futures saw mixed trading as China reopens after the week-long holiday with SHFE lead, nickel and copper up slightly while aluminium slid over 1%. Both tin and zinc also edged down.
In the ferrous complex, both coking coal and coke went up while rebar was down 1.7% and hot-rolled coil slipped 1.4%.
Copper: SHFE copper came off from highs registered earlier today as the 1804 contract saw investors exit the market throughout the day. The number of Americans filing for unemployment benefits to be released tonight may give cues to market participants.
Aluminium: SHFE aluminium touched a new low today at 14,030 yuan/mt as investors added their short positions. We expect to see limited downward room, however, due to downstream demand in the second quarter and costs of production at the 14,000 yuan/mt level.
Nickel: With support at several moving averages, SHFE nickel traded rangebound at around 102,800 yuan/mt after touching a high at 104,000 yuan/mt. Investors would also look out for the US jobless data tonight.
Tin: With little support at the five-day moving average and pressure at the 20-day moving average, SHFE tin is expected to fall and test the 146,000 yuan/mt level tonight.
Lead: As LME lead weakens, we expect SHFE lead to stay rangebound tonight with pressure at the 40-day moving average.
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