LIVE FUTURES REPORT 30/01: SHFE base metals prices correct after strong gains on Monday

Base metals prices on the Shanghai Futures Exchange were all weaker during Asian morning trading on Tuesday January 30, with a correction underway across the complex following a strong performance in the previous session.

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The most-traded March copper contract on the SHFE stood at 53,500 yuan ($8,449) per tonne as of 10.04 am Shanghai time, down by 100 yuan or 0.2% from the previous session’s close of 53,600 yuan per tonne.

A firmer dollar has put downward pressure on the base metals prices this morning.

The dollar index was up by 0.1% to 89.45 as of 10.26 am Shanghai time - it continues to push away from the recent low of 88.43 reached on January 25.

The SHFE March zinc contract price fell by 75 yuan or 0.3% to 26,980 yuan per tonne as of 10.04 am Shanghai time, compared with yesterday’s close, retreating slightly from the more than 10-year high of 27,230 yuan per tonne reached on Monday.

“[Zinc] prices soared to a fresh 10-year high [on Monday] amid dwindling inventories. Stockpiles in [London Metal Exchange] warehouses have fallen to 176,300 tonnes, the lowest level since 2008. There was also a sudden spike in cancelled warrants (order to remove inventory from warehouses)…,” ANZ Research noted on Tuesday.

On the concentrates side, zinc miners hope to halve the annual concentrate treatment charges in initial offer prices to smelters this year, while the market prepares for what could be one of the most vibrantly contested negotiations for years.

Other base metals prices lower

  • The SHFE May tin contract price dipped by 130 yuan or 0.1% to 150,820 yuan per tonne - the contract had reached a three-month high of 151,470 yuan per tonne during trade on Monday.
  • Supply of tin ingots in China is reportedly tight with production rates at domestic smelters affected by ongoing environmental inspections, while demand has picked up slightly due to downstream consumers stocking material ahead of the Chinese New Year holidays which begin in mid-February.
  • The SHFE May nickel contract price declined by 110 yuan or 0.1% to 105,810 yuan per tonne.
  • The SHFE March lead contract price was down by 150 yuan or 0.8% to 19,650 yuan per tonne.
  • The SHFE March aluminium contract price decreased by 80 yuan or 0.5% to 14,590 yuan per tonne.

Currency moves and data releases

  • The dollar index rose by 0.1% to 89.45 as of 10.26 am Shanghai time - the recent low was 88.43 on January 25.
  • In other commodities, the Brent crude oil spot price was down by 0.23% at $69.24 per barrel as of 10.34am Shanghai time.
  • In equities, the Shanghai Composite was down by 0.3% at 3,513.9 as of 10.29 am Shanghai time.
  • In US data on Monday, personal spending and income both grew at 0.4% in December, while the core personal consumption expenditure price index was in line with expectations with a 0.2% increase.
  • In data today, there is a host of flash gross domestic product (GDP) releases across Europe as well as the German preliminary consumer price index (CPI) and UK net lending to individuals, M4 money supply and mortgage approvals. CB consumer confidence from the United States is also due.
  • In addition, Bank of England Governor Mark Carney is speaking today.
  • Looking ahead to Wednesday morning, we have Chinese manufacturing and non-manufacturing purchasing managers’ indices due at 09.00 am Shanghai time, followed by US President Donald Trump delivering his State of the Union Address in Washington DC an hour later.

LME snapshot at 02.04 am London time
Latest three-month LME Prices
Price ($ per tonne)  Change since yesterday's close ($)
Copper 7,118 33
Aluminium 2,232.5 7.5
Lead 2,620 18
Zinc 3,553.5 3.5
Tin 21,870 -55
Nickel 13,895 90

SHFE snapshot at 10.04 am Shanghai time
Most-traded SHFE contracts
Price (yuan per tonne)  Change since yesterday's close (yuan)
Copper (March) 53,500 -100
Aluminium(March) 14,590 -80
Zinc(March) 26,980 -75
Lead(March) 19,650 -150
Tin (May) 150,820 -130
Nickel (May) 105,810 -110

Changjiang spot snapshot on January 30
Range (yuan per tonne)  Change (yuan)
Copper  53,180-53,200 -220
Aluminium 14,370-14,410 -120
Zinc 26,900-27,700 -190
Lead 19,550-19,750 -50
Tin  149,000-150,500 1,000
Nickel  104,700-105,000 -550

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