SHANGHAI, Dec 9 (SMM) –

Copper: Copper prices jumped on Friday night, bolstered by robust US jobs data and deeper OPEC production cuts. Improved demand for riskier assets sent US gold futures below $1,470/oz. Three-month LME copper rose to its highest since July 30 at $6,027/mt, before it finished the trading day 2.2% higher at $6,025/mt. The most active SHFE 2001 contract advanced 1.4% in the Friday night trading session to close at 47,940 yuan/mt. Positive fundamentals will remain supportive of copper prices, which see upside potential hampered by global trade uncertainty. With stocks at SHFE warehouses declining to 112,700 mt last week, visible copper inventories in China stayed around four-year lows. The latest SMM survey, meanwhile, showed that Chinese copper semis producers operated at a better-than-expected rate when going to the year-end. Friday night’s jump sent SHFE copper above the upper Bollinger band to a strong resistance area around 48,000 yuan/mt. SHFE copper is likely to pull back in the short term, and to move between 47,600-48,000 yuan/mt today. LME copper is expected to trade at $5,980-6,040/mt. Spot premiums are seen lower at 100-130 yuan/mt, in view of a narrow contango of around 70 yuan/mt on SHFE copper and the impending delivery of the December contract.

Aluminum: Three-month LME aluminium rallied from a two-week low of $1,735/mt on Friday amid the uptrend across nonferrous metals on the back of upbeat US employment report. LME aluminium finished the trading day 0.77% higher at $1,762.5/mt, with the unwinding of short positions primarily accounting for the gains. It is likely to trade rangebound at $1,750-1,800/mt today. The most traded SHFE 2001 contract fell to a one-week low of 13,810 yuan/mt in early trade on Friday night, before it recovered some ground to close marginally lower at 13,865 yuan/mt. SHFE aluminium is expected to waver between 13,810-13,950 yuan/mt today, as investors weigh falling inventories against demand changes. Spot premiums are seen at 40-60 yuan/mt over the SHFE 1912 contract.

Zinc: Three-month LME zinc climbed to an intraday high of $2,265/mt on Friday, before it gave back all those gains to close flat at $2,239/mt. LME zinc held to the five-day moving average, subdued by the 10-day one but supported by the lower Bollinger band. Zinc stocks at LME warehouses decreased 0.21% on the day. LME zinc is expected to move between 2,210-2,260/mt today, with support at the five-day moving average coming under scrutiny today as blockbuster US jobs data dampen expectations for further easing from the Fed. The most active SHFE 2002 contract reversed earlier gains to close slightly weaker at 17,850 yuan/mt on Friday night. SHFE zinc clang to the 10-day moving average and was supported by the five-day one, with MACD indicators in a golden cross. Zinc prices received a boost from SMM data showing that zinc social inventories in China dropped 12,400 mt to 129,900 mt last week. The SHFE 2002 contract is expected to trade between 17,700-18,100 yuan/mt today, with spot premiums for domestic 0# Shuangyan at 210-260 yuan/mt over the SHFE 1912 contract.

Nickel: Three-month LME nickel advanced 1.58% to $13,490/mt on the trading day of Friday, while the most traded SHFE 2002 contract added 1.26% in Friday night trading to 107,050 yuan/mt. Support at the five-day moving average for both LME and SHFE nickel will come under scrutiny today.  

Lead: Three-month LME lead slipped to a fresh five-month low of $1,880/mt on Friday, before it closed down 0.89% at $1,889/mt. There is further downside expected in LME lead. The most active SHFE 2001 contract hovered in a wide range around 15,090 yuan/mt on Friday night, and ended 0.13% firmer at that level. SHFE lead has wavered around its recent lows for three days, suggesting that it faces strong resistance. It may track the losses in its LME counterpart in the short term.

Tin: Three-month LME tin extended its gains to a nearly two-month high of $17,085/mt on Friday, before closing up 1.61% at $17,045/mt. Resistance is seen at a previous high of $17,200/mt. The most traded SHFE 2001 contract rose to its highest since October 18 at 140,470 yuan/mt on Friday night, as a jump in LME tin encouraged Shanghai longs to aggressively load up positions. SHFE tin later erased some gains to close up 0.37% at 139,620 yuan/mt. Resistance is seen at 140,500 yuan/mt.