Base Metal Overnight Update

Advisory Bazaar Info Services

🔶 Copper Futures

LME Copper: Overnight, LME copper opened at $14,499/mt and briefly touched a high of $14,505/mt before trending lower throughout the session. Near the close, prices fell to a low of $14,147/mt and settled at $14,182.5/mt, down 4.25%.

Trading volume stood at 44,000 lots, while open interest increased by 1,345 lots to 273,000 lots, indicating increased short-position buildup.

SHFE Copper 2610: The contract opened at 108,500 yuan/mt, reached a high of 109,090 yuan/mt, and declined to a low of 108,350 yuan/mt before settling at 108,360 yuan/mt, down 3.02%.

Trading volume was 127,000 lots, while open interest fell by 29,600 lots to 205,000 lots, indicating long-position liquidation.

🔶 Aluminium Futures

LME Aluminium: On September 10, LME aluminium opened at $3,355/mt, touched a high of $3,362/mt and a low of $3,272.5/mt, and closed at $3,274.5/mt, down $85.5/mt or 2.54%.

After its recent sharp rise, aluminium futures retreated significantly and broke below multiple short-term moving averages. Trading volume increased, while open interest rose, mainly due to fresh bearish positions.

Technically, the daily MACD red bars shortened sharply, indicating a rapid loss of bullish momentum.

SHFE Aluminium: The most-traded contract opened at 24,310 yuan/mt in the September 10 night session, reached a high of 24,310 yuan/mt and a low of 24,075 yuan/mt, before closing at 24,125 yuan/mt, down 365 yuan/mt or 1.49%.

Prices fell below multiple short-term moving averages, weakening the recent bullish structure. Trading volume increased notably, while open interest declined sharply, mainly due to long-position liquidation.

The 4-hour MACD formed a death cross, with green bars emerging and signalling increasing bearish momentum.

🔶 Lead Futures

LME Lead: The LME 3M lead contract opened at $1,910/mt on September 10 and rose to $1,918/mt during Asian trading, again testing the upper Bollinger Band but failing to break above it.

Prices subsequently weakened during the European and US sessions, reaching an intraday low of $1,898.5/mt before settling at $1,900.5/mt, down $8.5/mt or 0.45%.

The trading range was $1,898.5–1,918/mt, with volume at 7,105 lots. Open interest declined by 3,429 lots to 169,509 lots, while the daily chart formed a bearish candlestick.

SHFE Lead 2610: The contract opened at 16,100 yuan/mt, quickly rose to 16,265 yuan/mt, and then weakened to a low of 16,075 yuan/mt before recovering slightly to settle at 16,165 yuan/mt, down 5 yuan/mt or 0.03%.

Night-session volume stood at 37,560 lots, while open interest increased by 985 lots to 64,060 lots.

🔶 Zinc Futures

LME Zinc: Overnight, LME zinc opened at $4,058/mt and briefly rose to $4,064.5/mt before bulls began reducing positions. Prices then declined steadily, reaching a low of $3,851/mt near the end of the session.

LME zinc settled at $3,855/mt, down $209/mt or 5.04%.

Trading volume increased to 24,764 lots, while open interest fell by 3,212 lots to 261,000 lots.

SHFE Zinc 2610: The contract opened at 27,080 yuan/mt, edged up to 27,090 yuan/mt, and then declined to a low of 26,750 yuan/mt before settling at 26,760 yuan/mt, down 715 yuan/mt or 2.60%.

Trading volume fell to 115,000 lots, while open interest decreased by 13,251 lots to 133,000 lots.

🔶 Tin Futures

LME Tin: LME 3M tin closed at $55,680/mt on September 9, up 1.74%, with an intraday range of $54,710–55,800/mt.

SHFE Tin SN2610: The contract opened at 419,500 yuan/mt during the September 10 daytime session and closed at 425,770 yuan/mt, up 7,820 yuan/mt or 1.87%.

The intraday range was 418,550–427,970 yuan/mt, with a settlement price of 423,290 yuan/mt. Open interest increased by 2,949 lots to 37,926 lots.

In early trading on September 11, SHFE tin closed at 414,050 yuan/mt, down 2.18% from the previous settlement of 423,290 yuan/mt.

📌 Market View

Base metals came under broad selling pressure overnight, led by sharp declines in copper and zinc, while aluminium also weakened significantly. Lead remained comparatively stable, whereas tin showed strong volatility.

Traders should closely monitor open-interest changes, technical support levels and fresh fundamental developments for the next trading session.

Advisory Bazaar Info Services