SMM4 March 1: the non-ferrous metals market has its ups and downs this morning. By the midday close, international copper and Shanghai copper fell nearly 0.1%, Shanghai aluminum rose nearly 1.1%, Shanghai lead fell nearly 1.3%, Shanghai zinc fell nearly 0.3%, Shanghai nickel rose nearly 0.1%, and Shanghai tin rose nearly 1.3%. As for copper, the copper consumption of the power industry accounts for about 46% of the total terminal consumption, and its weight is nearly 60% driven by the state Electroweb investment. Electroweb investment has a greater impact on the copper market. From what we have learned, the number of bids invited by the national network in the first quarter decreased by about 41% compared with the same period last year, and by as much as 82% compared with the same period in 19 years. Under the high copper price, the orders of the national network have shrunk sharply, and the insufficient operating rate of cable enterprises is the biggest factor affecting the poor demand for copper rods. In our research this week, we feel signs that cable companies are getting better, such as orders for infrastructure projects in the southern market.
"[SMM Analysis] when will the peak season of copper consumption begin in the second quarter?
On the black side, the thread rose nearly 0.7%, the hot coil rose nearly 1.1%, the coking coal fell nearly 4.2%, the coke rose nearly 1.3%, the iron ore fell nearly 2.6%, and the stainless steel fell nearly 1.5%. According to the hot rolling data this week, it is estimated that the total market resources will arrive at 256000 tons this week, an increase of 3.7 tons from the previous month, an increase of 20.16%. Among them, the increment of arrival in the Shanghai market is the largest, however, due to the gradual convergence of national volume prices in recent days, Northwood is "difficult", and the discounts offered by most steel mills to agents in East and South China in April are relatively low, and it is expected that the follow-up volume of Northwood will be significantly reduced.
The previous period of crude oil fell nearly 2.1%, and international crude oil futures rose on Thursday, reversing some of the previous day's decline. at the time of the resurgence of the novel coronavirus epidemic in some areas, the market expects the Organization of Petroleum Exporting countries ((OPEC)) and its allies of oil-producing countries to decide on production limits at a meeting later on Thursday. OPEC will hold a ministerial meeting later on Thursday to decide on the production policy, and the options to be considered include the continuation of the output policy and a gradual increase in production.
In terms of precious metals, Shanghai gold rose nearly 1.9%, Shanghai silver rose nearly 1.4%, and international spot gold prices rose slightly on Thursday. As the prospect of the US $2 trillion stimulus package raised inflation concerns, US President Joe Biden proposed a more than $2 trillion plan to give full play to the power of the government to transform the US economy and meet the rise of China, but the plan soon faced political resistance. The stimulus package increases the likelihood of higher inflation, and gold is often seen as a hedge against inflation.
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