Commodity News
HeadLine : Shanghai base metals were mostly higher in ‘fragile’ market environment
Date : Mar 8 2021
Shanghai base metals were mostly higher on Monday morning as investors reacted to last week's US jobs report that trounced expectations and fueled hopes for a faster economic recovery. Meanwhile, their counterparts on the LME rose across the board. Shanghai base metals mostly advanced in overnight trading. Copper added 1.31%, tin rose 1.57%, aluminium went up 0.32%, zinc increased 1.14% and nickel strengthened 1.44%, while lead slid 1.36%. The LME complex all closed higher on Friday. Copper rose 4.52%, aluminium increased 2.54%, zinc went up 2.06%, lead added 0.25%, nickel jumped 3.02% and tin gained 3.22%. Last Friday night, US nonfarm data for February was released, and the employment population increased by 379,000. The nonfarm data far exceeded expectations, which boosted the prospects of economic recovery. The market hoped that Biden would launch a 1.9 trillion stimulus plan, and investors' confidence in sustained economic recovery helped keep copper futures at a high level. On the other hand, inflation expectations and strong nonfarm data have further provided momentum for the dollar to rise. On Friday, the US dollar index rose to a three-and-a-half-month high, hitting around 92.20 in intraday trading, which put some pressure on copper conracts to keep rising. On the spot side, traders are still leading the trading in the market. This week, they will enter the delivery cycle and the centralized trading period of transactions under long-term contracts. Traders still have a certain willingness to receive goods in the state of low discount. The spot market is expected to stop falling and rebound, or will gradually return to the pattern of a slight premium.

Source : SMM

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