Base Metal Overnight Update
Advisory Bazaar Info Services
🔹 Copper Futures
LME Copper: Copper opened at $14,332.5/tonne on Friday night and dipped to $14,277/tonne in early trading. It then recovered steadily, with prices approaching $14,419/tonne near the close. Copper finally settled at $14,378.5/tonne, up 0.11%. Trading volume was 17,000 lots, while Open Interest increased by 1,102 lots to 266,000 lots, indicating bullish positioning.
SHFE Copper 2610: The contract opened at 108,760 yuan/tonne and touched a low of 108,720 yuan/tonne before moving higher. Prices approached 109,390 yuan/tonne near the close and finally settled at 109,290 yuan/tonne, up 0.16%. Trading volume stood at 26,000 lots, while Open Interest increased by 1,608 lots to 211,000 lots, indicating fresh bullish positioning.
🔹 Aluminum Futures
SHFE Aluminum: The most-traded contract opened at 24,240 yuan/tonne during the September 4 night session, with a high of 24,355 and a low of 24,220 yuan/tonne. It closed at 24,320 yuan/tonne, up 0.12%. Futures stabilized and rebounded, while short-term moving averages remained in a bullish alignment. Trading volume declined notably, whereas Open Interest edged higher, mainly due to long-side additions.
LME Aluminum: LME Aluminum opened at $3,316/tonne, touched a high of $3,321 and a low of $3,278, before closing at $3,296/tonne, down 0.65%. The previous day’s recovery failed to extend, and prices weakened again. However, the closing price remained above the short-term moving averages. Open Interest increased, with short-side additions prominent.
🔹 Lead Futures
LME Lead: The 3M contract opened at $1,902.5/tonne on September 4. After consolidating at lower levels during Asian trading, prices strengthened during the European session and briefly reached $1,916/tonne during the European-US overlap. Resistance near the upper Bollinger Band triggered a pullback, and the contract closed at $1,906.5/tonne, down $0.5/tonne or 0.03%. The daily candle formed a small bullish candle with a long upper shadow.
SHFE Lead 2610: The contract opened at 16,160 yuan/tonne, briefly dipped to 16,115 yuan/tonne and then recovered to 16,180 yuan/tonne before closing at 16,130 yuan/tonne, unchanged from the previous session. Prices have remained range-bound for several sessions but continue to hold above the 16,000 yuan/tonne level.
🔹 Zinc Futures
LME Zinc: Zinc opened at $3,903/tonne and briefly dipped to $3,902.5/tonne before strong buying and fresh long-position additions pushed prices higher. The contract reached a high of $3,957/tonne and finally settled at $3,940.5/tonne, up $43/tonne or 1.10%. Trading volume was 13,878 lots, while Open Interest increased by 2,884 lots to 265,000 lots.
SHFE Zinc 2610: The contract opened at 26,710 yuan/tonne and briefly fell to 26,675 yuan/tonne before strong buying lifted prices to a high of 27,040 yuan/tonne. It finally settled at 27,005 yuan/tonne, up 260 yuan/tonne or 0.97%. Open Interest increased by 1,009 lots to 158,000 lots.
🔹 Tin Futures
LME Tin: LME Tin closed at $54,850/tonne on September 4, down $50 or 0.09%. The cancelled-warrants ratio remained high at 26.5%, while inventories continued to rise, reaching 5,470 tonnes, up 25 tonnes.
SHFE Tin SN2610: During the September 4 daytime session, the contract opened at 419,200 yuan/tonne, reached a high of 420,250 and a low of 415,490 yuan/tonne, before closing at 416,460 yuan/tonne, up 1,160 yuan or 0.28%.
In the night session, it opened at 414,510 yuan/tonne, touched a high of 418,060 and a low of 413,540 yuan/tonne, and closed at 417,440 yuan/tonne, down 820 yuan or 0.20%. Night-session volume was 52,700 lots, with turnover of 21.91 billion yuan. Open Interest stood at 37,100 lots, down around 4.7% from 38,900 lots on September 3.
Overall Market View:
Base metals showed a mixed performance overnight. Copper and Zinc remained firm with fresh long-position additions, while Aluminum, Lead and Tin showed mixed trends. Zinc continued to outperform, whereas Tin and Aluminum faced some profit-taking and position reduction.