[SMM Metal Breakfast] Why is the copper market generally low in Guangdong, Tianjin and Shengshui? Shanghai and tin are still active in the short term * Silicon social inventory is accumulating *

[overnight quotation] the outer disk metal rose across the board, Lenny rose 3.58%, and gold fell by nearly 2%.

Today's focus

[SMM analysis: why the rising water in Guangdong and Tianjin in the copper market is generally on the low side, only in Shanghai.] just after the National Day entered the golden autumn in October, the spot rising water in the three places welcomed the general rise, but the rising water in Guangdong and North China was still low, and only the rising water in Shanghai stood out. According to our SMM quotation data, Shanghai Pingshui copper price rises 110 yuan / ton, Guangdong Pingshui copper discount is 20 yuan / ton, North China Pingshui copper price rises 15 yuan / ton, the price difference between Shanghai and Guangdong is 130 yuan / ton, and the price difference between Shanghai and Tianjin is 95 yuan / ton. "View details

[SMM data: multiple arrivals are limited. Domestic electrolytic aluminum social inventory is 60, 000 tons to 715000 tons.] October 9, Wuxi and Gongyi did not arrive much during the holiday period. SMM statistics showed that the domestic electrolytic aluminum social inventory was 715000 tons, an increase of 60, 000 tons over September 30, and 75000 tons in the same period last year. "View details

[SMM analysis: Shanghai lead slump after the opening of the festival-weak consumption] SMM believes that due to the gradual release of new capacity expansion of recycled lead, the supply side is expected to increase, while downstream consumption is gradually weakening, overall, lead fundamentals are difficult to support the rise in lead prices, lead prices are expected to be weak after the festival, and the operating range will move further down. "View details

[SMM Express Review: the outbreak of strikes in Indonesia has no impact on ferronickel production] according to SMM, the strike is mostly concentrated near Jakarta, and it cannot be ruled out that it will affect the mood of iron factory workers, but there is no news that the strike has an impact on ferronickel production. "View details

[SMM concern: the 4th RKEF furnace of Weda Bay Zhenshi in Indonesia was successfully tapped] according to Zhenshi Holdings Group, the 4th electric furnace of Yashi Indonesia Investment Co., Ltd., a subsidiary of Zhenshi Holdings Group, was successfully tapped at 17:58 local time on October 8th. It marks Yashi Indonesia's annual production of 300000 tons of nickel-iron project and opens a new chapter in the international development of the group.

[SMM analysis: the superimposed epidemic in the rainy season affects the supply of tin ore and tin in the short term.] SMM expects that there will still be action energy in Shanghai tin prices in the future. If the loose economic policy of the United States can maintain the low price of the US dollar, Shanghai tin may rise again by 148000 yuan / ton in October, and the higher price needs to be cautious of high risk. "View details

[SMM silicon inventory: holiday out of storage stagnant silicon social inventory accumulation] SMM statistics metal silicon social inventory totaled 77000 tons, an increase of 4000 tons over the pre-holiday period. The warehouse in Huangpu Port increased significantly during the holiday period, and the Kunming warehouse entered the warehouse more than out of the warehouse because of the decrease in mid-festival transactions. In view of the long time of railway transportation, the impact of the increase in production of large factories in Xinjiang on the inventory of Tianjin Port is expected to be reflected by the end of October. "View details

[SMM interpretation: power battery market warms up electrolyte prices soar but lithium iron phosphate prices continue to fall] the upside of electrolyte prices is the pick-up in demand for power batteries. September to October is the peak season of the car market, with the strong support of the new energy sales rebound month-on-month and superimposed national policy, the overall trend of the new energy vehicle market is improving, leading to an increase in the demand for power batteries. According to data from the China Automobile Association, the production and sales of new energy vehicles completed 106000 and 109000 respectively in August, up 17.7 per cent and 25.8 per cent respectively over the same period last year. On the other hand, the market shipment of raw material lithium hexafluorophosphate is tight, the price continues to rise, and the demand for downstream iron lithium battery increases, which may lead to the increase of electrolyte price next month. "View details

[SMM analysis: macro warmer superimposed environmental production restrictions on the first day of the strong black upside] coming back after the festival, on the one hand, overseas assets rose more and fell less during the long holiday, market sentiment was warm; on the other hand, downstream reserve demand supported the market; And coke enterprises in Shanxi, Hebei, Shandong and other places have opened a new round of increase of 50 yuan / ton, some coal mines due to the National Day holiday, low inventory in the plant, coupled with increased expectations of follow-up safety inspections, market sentiment is optimistic, and the strong price of raw materials also supports the price of finished wood. "View details

[SMM Steel: on the specific impact of the new document on production restriction of environmental protection in Tangshan] the document on production restriction issued during the National Day period is aimed at different steel mills and different regions, both tightening and appropriate relaxation, and there are little changes in the main areas. At the same time, according to the detailed investigation and understanding of SMM, taking into account the continuous production limit of the sintering machine, some steel mills appropriately increase the maintenance of blast furnace and rolling line in production, and appropriately reduce the output of rolling line, so as to slow down the consumption of sinter and ensure the normal production state. For the finished products, the long-term production restriction of the sintering machine will lead to a decline in the output of steel mills, and the subsequent market supply pressure will be gradually alleviated, boosting market confidence and forming a certain support for spot prices. "View details

SMM Hot Rolling scheduling report: can spot prices take advantage of the slight decline in hot coil production in October? According to the latest tracking by SMM, the planned hot-rolled commodity production of 35 mainstream hot-rolled steel mills surveyed totaled 10.294 million tons in October, 1.8% lower than the actual hot-rolled commodity output in September. "View details

[SMM hot coil: hand in hand with "double section" accumulation arrived on schedule] Last week, the total stock of hot rolled coil was 4.3458 million tons, which was + 281900 tons higher than that before the festival (September 24), compared with + 6.94%, and + 27.28% compared with the same period last year. With the advent of the double holiday, demand is "stagnant", while steel production is still "non-stop", resulting in a substantial accumulation of total inventory. "View details

Important news of metals and industry

[Sumitomo Group and Sumitomo Metal Mining Company are considering selling shares in Chile's Sierra Gorda Copper Mine] Japan's Sumitomo Group (Sumitomo Corp) said on Friday that Sumitomo Group and Sumitomo Metal Mining (Sumitomo Metal Mining Co. Ltd.) It is considering selling its stake in Chile's Sierra Gorda copper mine. Sumitomo Metal Mining Co Ltd. And Sumitomo Corp hold 31.5% and 13.5% shares in the mine, respectively, and the rest is owned by Polish mining company KGHM KGH.WA. hold. Sumitomo Metal Mining Co. Ltd. A similar statement was issued on Thursday.

[Chilean Escondida Copper Union executives failed to agree on labor contracts] executives of Chile's Escondida Copper Union, the world's largest copper mine, said on Friday that they had rejected the latest labor agreement proposed by BHP (BHP) in negotiations, raising the risk of a strike. "View details

[the United States imposes tariffs on aluminum plates from 18 countries and regions] U.S. Commerce Secretary Wilbur Ross said on Friday that the United States would impose new duties on $1.96 billion worth of aluminum sheet products from 18 countries after the United States ruled that they had been dumped. "View details

[notice of the previous period on agreeing to the change of registered enterprise name of Zhongning County Jinning Aluminum magnesium New material Co., Ltd.] the previous period agreed to change the registered enterprise name of Zhongning County Jinning Aluminum magnesium New material Co., Ltd. From the date of the announcement, the above products can be used for the performance and delivery of our aluminum futures contract. The products using the original logo shall not produce standard warehouse receipts, and the standard warehouse receipts that have been generated can continue to be used until they are cancelled. "View details

[South African coal miner Exxaro is selling Vedanta Zinc's BMM shares] South African coal miner Exxaro said on Friday that talks were under way to sell its 24.4% stake in Montenegro Mining (BMM) business of Vedanta Zinc International (Vedanta Zinc International), but the deal had not yet been completed. Exxaro said it made the decision after a strategic review of its portfolio and concluded that zinc mining was not in line with its long-term goals. Exxaro also has ore, iron ore and energy businesses. The miner said it would update market information on the sale of its stake in the BMM copper mine in the Northern Cape after the deal was completed.

[South Crofty tin mine announces new hole drilling results with an average tin content of 2.19%] (Cornish Metals Inc.), Cornwall Metals, the owner of the, South Crofty mine, recently reported further good results of its drilling program. A new hole called "SDD20-001" was drilled in the middle of the South Crofty deposit to test several tin-bearing vein structures, which have now intersected three ores, resulting in an average tin content of 2.19%. "View details

[Sibao Technology: the net profit in the third quarter is expected to increase by 56% RMB76% compared with the same period last year] Sibao Science and Technology announcement, it is expected to make a profit of 60 million yuan to 67.5 million yuan in the third quarter, an increase of 56% Muth76% over the same period last year. In the first three quarters, the company accelerated the import of electronic and electrical glue, the rapid development of solar photovoltaic glue and other fields, as well as the good profitability of Toli technology contributed to the steady improvement of the company's industrial glue performance.

[Element 25: putting money from previous sales of rare earth minerals into the Butcherbird manganese project] recently, Element 25, a manganese developer listed on the Australian Stock Exchange, received money from the sale of the (Cummins Range) rare earth mine in the Cummins Mountains in East Kimberley, Western Australia, which will be invested in its A $15 million Butcherbird manganese mine developed at Pilbara. "View details

450 million yuan! Cobalt mine producer Luoyang Molybdenum Industry plans to buy back up to 100 million A shares] recently, Luoyang Molybdenum Industry announced that the company intends to buy back A shares in the company by means of centralized bidding transactions, which will then be used for the implementation of the equity incentive plan or employee stock ownership plan. The total repurchase capital is expected to be no more than 450 million yuan, the number of repurchase shares is not less than 50 million shares, not more than 100 million shares, and the repurchase price is not more than 4.5 yuan per share. "View details

[Tengyuan Cobalt gem IPO application accepted to raise 2.198 billion of the main business] recently, Ganzhou Tengyuan Cobalt New Materials Co., Ltd. (hereinafter referred to as: Tengyuan Cobalt) gem IPO application was accepted by the Shenzhen Stock Exchange. The IPO, Tengyuan Cobalt Company intends to raise 2.198 billion yuan for the "annual production of 20,000 tons of cobalt and 10,000 tons of nickel metal series products of remote intelligent technological transformation and upgrading and supporting production of raw and auxiliary materials (Phase II)" (the proposed use of the raised funds investment of 1.698 billion yuan) and supplementary liquidity (the proposed use of raised funds of 500 million yuan). "View details

[Chile's SQM, the world's second-largest lithium producer, can reduce its use of fresh water and salt water by 50 per cent within a decade.] as the world's second-largest producer of lithium, Chile's SQM will take the initiative to reduce the use of fresh water and salt water from the Atacama Desert to reduce the overall impact of its operations in one of the world's driest regions. "View details

[notice on daily emission reduction measures of industrial enterprises in autumn and winter of Tangshan City from 2020 to 2021] recently, the notice of daily emission reduction measures of industrial enterprises in autumn and winter of Tangshan City from 2020 to 2021 was issued. The notice requires that Shougang Qiangang and Shougang Jingtang Company, whose performance rating is Grade A, adopt independent emission reduction; the blast furnace production of Grade B is limited by 10%. The proportion of production limit of sintering (pellet), steelmaking, rolling, lime and other processes shall not be lower than that of blast furnace, and the performance rating is B. The production limit of grade C blast furnace is 20%, and the production limit proportion of supporting sintering (pellet), steelmaking, steel rolling, lime and other processes shall not be lower than that of blast furnace production limit; the performance rating of C grade blast furnace production limit is 35%, the production limit proportion of matching sintering (pellet), steelmaking, steel rolling, lime and other processes shall not be lower than the blast furnace production limit ratio; The production limit of the blast furnace with a performance rating of D is 45%, and the proportion of production limit of the supporting processes such as sintering (pellet), steelmaking, steel rolling and lime shall not be lower than that of the blast furnace.

[mid-October Zhongtian Steel Construction Steel Price Policy] on October 10, Zhongtian Iron and Steel issued a construction steel price policy in mid-October: to maintain stability in rebar prices, the snail price increased by 50 yuan per ton, and the high-speed line price increased by 50 yuan per ton. The ex-factory price of 16-25mmHRB400 rebar is 3850 yuan / ton, the ex-factory price of 8-12mmHRB400 rebar is 4200 yuan / ton, and the ex-factory price of Φ 6.5-12mmHPB300 high-speed wire is 4200 yuan / ton. For the completion of the previous phase of the plan, rebar recovery 40 yuan / ton, plate screw, high-speed line no catch-up. All the above adjustments include tax.

Macro focus

[central bank governor: resolutely do not engage in "flood flooding" industry: the probability of cutting reserve requirements during the year is small and the space for interest rate reduction is limited. Yi Gang, governor of the people's Bank of China, pointed out in a recent article that monetary policy should maintain reasonable and abundant liquidity. we will promote the reasonable growth of the money supply and the scale of social financing, and resolutely refrain from "flooding". At the same time, he pointed out that implementing a normal monetary policy, maintaining a positive interest rate and maintaining a normal and upward sloping yield curve are generally conducive to sustainable economic development. Therefore, it is necessary to implement the normal monetary policy as long as possible to promote the reasonable growth of residents' savings and income.

[the people's Bank of China has decided to lower the foreign exchange risk reserve ratio for forward foreign exchange sales to 0] since the beginning of this year, the RMB exchange rate has fluctuated in both directions on the basis of market supply and demand, the flexibility has been enhanced, market expectations have been stable, and cross-border capital flows have been orderly. The operation of the foreign exchange market remains stable, and the market supply and demand is balanced. To this end, the people's Bank of China has decided to lower the foreign exchange risk reserve ratio for forward foreign exchange sales from 20% to 0 from October 12, 2020. In the next step, the people's Bank of China will continue to maintain the flexibility of the RMB exchange rate, stabilize market expectations, and keep the RMB exchange rate basically stable at a reasonable and balanced level.

[CNN predicts that China's global share of GDP will rise by 1.1% this year.] the latest CNN of the United States points out that while many countries are still trying to recover from the economic downturn caused by COVID-19, China's economy has made great strides forward again. According to World Bank data, China's share of global GDP is likely to rise by about 1.1 percentage points by the end of this year. CNN expects China's economy to reach $14.6 trillion by the end of 2020, equivalent to about 17.5 per cent of global GDP.

[more than 7.7 million COVID-19 in the United States] according to the epidemic statistics of novel coronavirus at Johns Hopkins University in the United States, as of 1730 Eastern time on the 10th, the cumulative number of cases of COVID-19 infection in the United States reached 7706256, and the cumulative number of deaths reached 214171. In the past 24 hours, there have been 55431 new confirmed cases and 741 new deaths in the United States. More than 50,000 new cases have been diagnosed in the United States for four consecutive days, and local experts warn that if proper precautions are not taken, the situation will only get worse.

Terminal information

[Ministry of Industry and Information Technology: national output of lithium-ion batteries in August increased by 23.3% over the same period last year.] according to the Ministry of Industry and Information Technology, the national output of lithium-ion batteries in August was 1.79 billion, an increase of 23.3% over the same period last year; the output of lead-acid batteries was 20.782 million KVA, up 19.3% from the same period last year; and the output of primary batteries and primary battery packs (non-buckle type) was 3.75 billion, an increase of 5.9% over the same period last year. From January to August 2020, the operating income of battery manufacturing enterprises above the national scale was 446.93 billion yuan, down 7.2 percent from the same period last year, and the total profit was 19.76 billion yuan, an increase of 0.8 percent over the same period last year.

[Li Keqiang presided over an executive meeting of the State Council to adopt the "Development Plan of New Energy vehicle Industry". Premier Li Keqiang of the State Council presided over an executive meeting of the State Council on October 9, which adopted the "Development Plan of New Energy vehicle Industry." clearly give full play to the decisive role of the market in the allocation of resources, strengthen the dominant position of enterprises in the choice of technological routes, etc. Give better play to the role of the government in the formulation of standards and regulations, quality and safety supervision. Guide the orderly development of the new energy vehicle industry, promote the establishment of a national unified market, and improve industrial concentration and market competitiveness.

[BYD's September sales of 42000 pure electric passenger cars surged 66% from a year earlier] on October 9th, BYD released its September 2020 sales of KuaiBao. According to the data, BYD sold 42183 vehicles in the month, up 3.57% from 40729 in the same period last year and 14.7% from August. So far, BYD's cumulative sales in the previous September reached 268975 vehicles, down 19.9% from a year earlier, a further narrower decline than in August. "View details

[SAIC GM Wuling announced September sales by 20% year on year] on October 9, SAIC GM Wuling officially announced its September sales results. Data show that SAIC GM Wuling's overall sales reached 176000 vehicles, an increase of 20% over the same period last year, and has achieved year-on-year sales growth for six consecutive months. Specifically, the Wuling brand sold 118027 vehicles in September, up 36 per cent from a year earlier. The rise in sales also benefited from the help of new products. On Sept. 28, Wuling Capitol, the first flagship model of Wuling Global Bank, officially went on sale, gaining a lot of attention for its practical and people-friendly price. officials said that the pre-sale price had exceeded 2000 on the day of the announcement, and the total cumulative order volume exceeded 10000. "View details