Base Metals Overnight Update
Advisory Bazaar Info Services
Global base metals traded mostly higher overnight, supported by a weaker US dollar and short covering. Copper, aluminum, zinc, and tin posted strong gains, while lead remained under pressure due to rising inventories.
Copper
LME copper climbed 1.30% to $13,978.5/mt, driven by short covering as open interest declined. SHFE copper (2609) settled 0.75% higher at 105,560 yuan/mt, with rising open interest indicating fresh bullish positions. The combination of improving sentiment and long build-up suggests continued near-term strength.
Aluminum
LME aluminum advanced 0.52% to $3,193/mt, while SHFE aluminum gained 0.40% to 23,720 yuan/mt. Prices remained firmly above key moving averages, reflecting a positive technical structure. The rally was primarily supported by bearish position liquidation, with momentum indicators continuing to favor the upside.
Lead
LME lead slipped 0.18% to $1,893.5/mt, giving up early gains despite support from a weaker US dollar. SHFE lead declined 0.67% to 15,630 yuan/mt as rising lead inventories weighed on sentiment. However, expectations of production cuts among secondary lead producers may provide support at lower levels.
Zinc
LME zinc rose 1.02% to $3,609.5/mt, supported by strong buying during the latter part of the session. SHFE zinc increased 0.75% to 24,885 yuan/mt, with higher open interest reflecting fresh long additions and continued bullish market sentiment.
Tin
Tin outperformed all major base metals. LME tin surged 2.46% to $55,205/mt, confirming a strong technical breakout above the key $55,000/mt level. SHFE tin maintained its upward momentum, with the 2609 contract trading around 423,540 yuan/mt in the night session, reinforcing 420,000 yuan/mt as an important support zone after a successful breakout.
Market Outlook
Base metals maintained a positive tone overnight, led by strong gains in copper and tin, while aluminum and zinc continued to strengthen on technical momentum and short covering. Lead remained the only weak performer due to inventory pressure, though supply-side concerns could limit further downside. Market participants will closely monitor US dollar movements, macroeconomic developments, and Chinese demand indicators for further direction.