SHANGHAI, Feb 9 (SMM) — Shanghai base metals were mixed on Tuesday morning, while their LME counterparts rose for the most part, as US President Joe Biden and his Democratic allies in Congress cleared the path for their $1.9 trillion COVID-19 relief package as lawmakers approved a budget outline that will allow them to muscle the plan through without Republican support.
Shanghai base metals, except for zinc and tin, cruised higher in overnight trading. Copper rose 0.77%, aluminium added 0.76%, lead advanced 0.46% and nickel strengthened 0.52%, while zinc shed 0.22% and tin slid 1.39%.
The LME complex performed similarly on Monday. Copper gained 1.13%, aluminium added 0.4%, lead rose 0.44% and nickel increased 0.47%, while zinc pulled back 1.49% and tin slid 0.73.
Copper: Three-month LME copper rose 1.13% to close at $8,073.5/mt on Monday, while the most-traded SHFE 2103 copper contract advanced 0.77% to end at 59,240 yuan/mt in overnight trading.
Oil prices rose on Monday to their highest in over a year, with Brent nudging past $60 a barrel, boosted by supply cuts among key producers and hopes for further U.S. economic stimulus. The Dow and S&P 500 have now advanced for six straight sessions, while the Nasdaq Composite has finished in the green on five of those six days. A weak US dollar, rising US stocks and surging oil prices boosted copper futures.
LME copper is expected to trade between $8,040-8,120/mt today, and SHFE copper between 59,100-59,600 yuan/mt, while spot premiums will be seen at 20-100 yuan/mt.
Aluminium: Three-month LME aluminium added 0.4% to settle at $2,027/mt on Monday after hitting a one-month high at $2,040/mt earlier in the session, with open interest decreasing 4,352 lots to 741,000 lots.
The most-liquid SHFE 2103 aluminium contract gained 0.76% to close at 15,900 yuan/mt in overnight trading, with oepn interest losing 3,217 lots to 168,000 lots. It is expected to move between 15,500-16,000 yuan/mt today.
Zinc: Three-month LME zinc fell 1.49% to end at $2,644/mt on Monday after hitting a nearly two-week high at $2,700/mt earlier in the session, with open interest decreasing 4,267 lots to 229,000 lots. Zinc stocks across LME-listed warehouses dropped 625 mt or 0.22% to 289,725 mt. LME zinc is likely to fluctuate between $2,650-2,700/mt today.
The most-traded SHFE 2103 zinc contract shed 0.22% to settle at 20,010 yuan/mt in overnight trading. Trades were quiet in the spot market as most of the downstream plants have started the Chinese New Year holiday, but optimism over post-holiday consumption will support zinc prices. The March contract is likely to move between 19,800-20,300 yuan/mt today, while spot premiums for domestic 0# Shuangyan will be seen at 20-30 yuan/mt against the March contract.
Nickel: The most-active SHFE 2104 nickel contract firmed 0.52% to close at 133,980 yuan/mt in overnight trading, with open interest adding 4,761 lots to 163,000 lots.
Lead: Three-month LME lead climbed to a nearly two-week high of $2,078/mt on Monday before paring some gains to end 0.44% higher at $2,074/mt. LME lead stocks shrank by 400 mt to 93,250 mt. Optimism over a large US stimulus package and shrinking LME lead stocks boosted lead prices.
The most-liquid SHFE 2103 lead contract increased 0.46% to settle at 15,235 yuan/mt in overnight trading.
Tin: Three-month LME tin weakened 0.73% to close at $22,970/mt on Monday. LME tin stocks further declined to 785 mt, which is expected to lend support to tin prices in the short term. LME tin is expected to trade between $22,500-24,000/mt today.
The most-active SHFE 2104 tin contract declined 1.39% to end at 163,950 yuan/mt in overnight trading. It is likely to move between 163,000-168,000 yuan/mt today.