LIVE FUTURES REPORT 10/10: SHFE nickel outperforms; others mostly weaker

Base metals prices on the Shanghai Futures Exchange (SHFE) were broadly lower during Asian morning trading on Tuesday October 10, with only copper and nickel managing to post gains – the latter tracking the strong performance of the London Metal Exchange’s three-month nickel price seen on Monday.

The most-active January nickel contract traded at 87,930 yuan ($13,270) per tonne as of 03:40 BST, up 0.7% or 640 yuan from the previous day’s close.

Nickel was the standout performer on the SHFE this morning as it tracked the robust performance of the LME’s three-month nickel price, which rallied nearly 4% on Monday. The price closed above $11,000 per tonne as it continued to correct after falling significantly at the start of the month.

“With steel markets correcting in China, destocking has flowed through the stainless steel and nickel supply chain, which has forced a correction in LME nickel prices,” Metal Bulletin analyst William Adams said.

This correction has filtered through to SHFE nickel prices, which along with the prospect of a pick-up in demand from the steel markets due to rising steel prices should continue to support nickel.

“Purchases [of nickel] from steel markets will increase after the cautious, watchful attitude seen in the market before [China’s] Golden Week holiday as steel prices have risen as a result of supply constraints in China,” an analyst at Guotian Jun’an said.

Copper is the only other metal on the SHFE in positive territory this morning, with the most-active November copper contract inching 80 yuan higher to 52,190 yuan per tonne.

“Though copper prices in both physical and futures markets rose on the first day [of trade] after China’s week-long National Day holiday, consumers in downstream industries were largely inactive in restocking,” the analyst at Guotai Jun’an added.

“In light of the currently friendly macro-environment for base metals, we expect further upward pressure in copper prices in the coming days,” Metal Bulletin analyst Boris Mikanikrezai said.

Rest of complex lower

  • The SHFE November lead contract dropped 300 yuan or 1.42% to 20,850 yuan.
  • The SHFE January tin price stumbled 1,500 yuan to 146,800 yuan per tonne.
  • The SHFE December zinc contract decreased 190 yuan to 26,250 yuan.
  • The SHFE December aluminium contract edged down 15 yuan to 16,670 yuan.

Currency moves and data releases

  • The dollar index was down 0.18% to 93.55 as of 05:07 BST.
  • In other commodities, the Brent crude oil spot price was up 0.11% to $55.82 per barrel, and the Texas light sweet crude oil spot price increased 0.2% to $49.63.
  • In equities, the Shanghai Composite was down 0.33% to 3,363.12.
  • In data today, UK manufacturing production, goods trade balance, construction output and industrial production are due. There are also EU Economic and Financial Affairs Council meetings throughout the day.
  • In addition, US Federal Open Market Committee member Neel Kashkari is speaking later.
LME snapshot at 0341 London time
Latest 3M LME Prices
Price ($/t) Change since yesterday’s close ($)
Copper 6,726.5 60.5
Aluminium 2,162.5 -11
Lead 2,500.5 -11.5
Zinc 3,256 23
Tin 20,815 45
Nickel 10,950 -65
SHFE snapshot at 0340 London time
Most traded SHFE contracts
Price (yuan/t) Change since yesterday’s close (yuan)
Copper 52,190 80
Aluminium 16,670 -15
Zinc 26,250 -190
Lead 20,850 -300
Tin 146,800 -1,500
Nickel 87,930 640

Changjiang spot snapshot on Tuesday October 10
Range (yuan/t) Change (yuan)
Copper 52,500—52,520 10
Aluminium 16,230—16,270 50
Zinc 27,120—27,920 -80
Lead 21,650—21,850 -150
Tin 144,000—146,000 -500
Nickel 88,100—89,100 1,100
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