SHANGHAI, Feb 26 (SMM) – Metals futures on the SHFE performed strongly today as nonferrous metals rose across the board except for tin, which edged down slightly. Nickel went up 0.72%. Copper, aluminium, zinc and lead also inched up.
Ferrous metals remained firm as coke jumped over 4% and hot-rolled coil increased by close to 4%. Rebar rose over 3%, coking coal rose over 2% and iron ore edged up over 1%.
Copper: The SHFE copper contract is likely to test resistance at the 60-day moving average tonight. Investors are also likely to take cues from US data of new home sales tonight.
Aluminium: With inventories at record highs, SHFE aluminium registered a low at 14,195 yuan/mt in the morning. It climbed up and stood at 14,295 yuan/mt in the afternoon with support from the strong performance of base metals. If the decline in aluminium oxide remains within market expectations, SHFE aluminium is set to go up. Higher coal prices and destocking during the high season have driven up production costs of refined aluminium.
Zinc: Despite strong performance during the day, SHFE zinc sees limited upward room with support from several moving averages as inventory in Shanghai, Guangdong and Tianjin increases and as consumption has yet to significantly resume. Stronger LME zinc in European trading is expected to give support to SHFE zinc across moving averages tonight.
Tin: SHFE tin climbed up from earlier lows, and we expect the contract to stay rangebound at 146,500-148,500 yuan/mt in the short term.
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