SMM3: outer disk metals tumbled across the board yesterday, (LME) Industrial Metals fell on the London Metal Exchange on Thursday, and copper prices fell as much as 5 per cent at one point, dragged down by the collapse in nickel prices and investor nervousness about the wider market. Nickel futures fell for the second day in a row, falling more than 8%, the biggest one-day decline since 2016. Analysts pointed out that the trigger was the nickel sell-off, and now we are seeing a full-speed correction in the market. The whole LME metal market was green this morning. By about 09:30 in the morning, Lun Copper fell nearly 2.5%, Lun Zinc fell nearly 1.2%, Lun Aluminum fell nearly 1%, Lunni fell nearly 0.2%, Lun lead fell nearly 0.4%, Lunxi was flat. Domestically, international copper fell nearly 4.4%, Shanghai Copper fell nearly 4.1%, Shanghai Aluminum fell nearly 2.9%, Shanghai lead fell nearly 2.4%, and Shanghai Zinc fell nearly 1.8%. Shanghai nickel fell nearly 8.6%, Shanghai tin fell nearly 2.1%.
On the copper side, on the macro side, after Federal Reserve Chairman Colin Powell spoke at night, market panic intensified, US bond yields rose to an one-year high, US stocks widened their losses, and US stocks hit a five-week low; indicators of inflation expectations reached new intraday highs and the US dollar continued to strengthen, hitting an intraday high of 91.67, a new high in more than three months, while copper futures remained weak and fell sharply during the night.
[minutes of SMM Morning meeting] Copper fell sharply during the strengthening period of the US finger at night, and the spot price is expected to rise further.
Aluminum, March 4, spot transactions on futures discount narrowed to 30-10 yuan / ton, East China spot transactions concentrated 17560-17580 yuan / ton. Middlemen are still active in receiving goods, coupled with some downstream taking goods on demand, the liquidity of aluminum ingots is relatively not very abundant. Short-term Shanghai Aluminum continues high wide range concussion. Medium-term continue to pay attention to long short mood changes, it is recommended to increase shipments upstream, downstream procurement on demand-based, careful to chase high. Fundamentals are concerned about the impact of new messages from the "two sessions" on short-term mood swings in the market.
[minutes of SMM Morning meeting] Electrolytic aluminum continues to accumulate in the lower reaches of the bank and has a serious fear of heights
In terms of lead, Lun lead fell below several moving averages, falling below $2000 / ton, giving up all its gains since February. Still need to pay attention to 2000 US dollars / ton support during the day. Overnight, Shanghai lead recorded a bald negative column, briefly lost the ten thousand five line, running below the moving average group. Yesterday, the limit of Shanghai nickel fell and continued to fall at night triggered the return of the non-ferrous metals plate to the market, and Shanghai lead fell again in this general falling atmosphere. Fundamentally, the replenishment demand of some battery factories has not yet been released, and it is expected that Shanghai lead will pay attention to the support of the first line of Wanwu during the day.
[minutes of SMM Morning meeting] lead fell back during the overnight trading period and narrowed the price gap between spot lead and refined lead.
Zinc, overnight short take the initiative to close the position, many lingering fears, did not increase the position. Yesterday, at the low zinc price, downstream enterprises concentrated on stock purchases, and the spot market warmed up. It is expected that the high point of domestic zinc ingot inventory will be passed in the near future. at the same time, the shortage of domestic zinc mines has intensified, and there is still room for reduction in mining processing fees. the recovery of downstream demand and the reduction of mining processing fees will give strong support to Shanghai zinc. It is expected that Shanghai zinc will be good in the near future. Pay short-term attention to the economic agenda of the National people's Congress.
[minutes of SMM Morning meeting] the spot market of zinc ingots in the lower reaches of the river picked up yesterday.
In terms of nickel, the Ferro-Nickel-to-matte project affects resource shortage expectations in the new energy industry chain, makes up for some structural gaps, and may also have a small impact on the overall balance sheet of primary nickel. Nickel prices will still fall to absorb this part of the expectation. In the future, the trend of nickel price will return to the fundamentals of the primary nickel balance sheet, that is, the state of small surplus, and the expected high range of nickel price will be reduced. Judging from the decline in the outer disk, Shanghai Nickel still has room to make up for the decline, and the decline will continue in the short term.
[minutes of SMM Morning meeting] Nickel fell by the limit, spot water rose, and stainless steel prices continued to fall.
In terms of black series, threads fell nearly 4.3%, hot coils nearly 4.5%, coking coal nearly 2.7%, coke 5.7%, iron ore 4.2%, stainless steel 2.7%, hot rolls, yesterday's volume fluctuated throughout the day, the spot market quotation in early trading was basically stable, the coil price was high, the terminal purchase was more wait-and-see, the digesting inventory was mainly, the market transaction was weak, and some merchants tended to ship and cash profits. Secretly drop 10-30 yuan / ton in order to close a deal, low-cost resources deal better, due to the spot discount, market speculation is more active.
[minutes of SMM Morning meeting] the black department's strong undiminished demand has become the biggest mystery.
Crude oil rose nearly 4.3 per cent in the previous period, and international oil prices rose more than 4 per cent on Thursday, hitting their highest level in more than a year, after oil exporter (OPEC) and its allies agreed to keep production largely unchanged in April on the grounds that demand for recovery from the novel coronavirus epidemic remained fragile. Saudi Arabia, the leader of OPEC, said it would extend its voluntary production cut of 1 million b / d and decide when to phase out the cuts in the coming months.
In terms of precious metals, Shanghai gold IE nearly 1.3%, Shanghai silver fell nearly 4.4%, international gold prices fell to the lowest in nearly nine months on Thursday, spot gold hit a low of 1690.50 US dollars per ounce since June 8 last year, and US dollar and US bond yields rose under pressure after Federal Reserve Chairman Colin Powell hinted that he would not take immediate action to deal with the sharp rise in treasury bond yields.
As of 09:30, the status of contracts in the metals and crude oil markets:
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