SMM4 March 7: most of the non-ferrous metals market is green this morning. By midday, international copper fell 0.28%, Shanghai copper fell nearly 0.3%, Shanghai aluminum fell nearly 0.34%, Shanghai lead fell nearly 0.8%, Shanghai zinc rose 0.23%, Shanghai nickel fell 0.19%, and Shanghai tin fell 0.8%. In terms of copper, copper prices hit a 10-year high after the Spring Festival, with Shanghai copper surging above 70000 yuan / ton and the outer plate reaching the $9700 / ton mark. In this context, terminal consumption has been significantly suppressed by high copper prices, downstream processing plants are howling all over the country, smelters' inventory of electrolytic copper finished products has also hit a record high, and the spot market performance is far less than market expectations, and it is even in a discounted pattern for a long time in March.
[SMM Analysis] the spot market is expected to pick up with the advent of the peak season of copper consumption in April, which has been in a long-term discount pattern after the Spring Festival.
In terms of lead, lead concussion fell to 14850 yuan / ton in early trading before stabilizing, the supply of waste batteries was tight, the price drop was limited, losses on recycled lead increased, refineries were reluctant to sell, and environmental inspections restricted some recycled lead production. But the downstream faces the consumption off-season, the purchase is cautious, the recycled refined lead mainstream quotation to the SMM1# lead discount maintains 150-250 yuan / ton to leave the factory, the trading is light.
[SMM afternoon Review] recycled lead: lead consumption is light.
In terms of black system, thread rose 0.12%, hot coil rose 0.72%, coking coal fell 0.62%, coke rose 0.52%, and iron ore rose 2%. According to the blast furnace maintenance data counted by SMM, the impact of blast furnace maintenance this week is about 672100 tons less than last week; with some blast furnaces overhauled and resumed production, hot metal production is expected to pick up this week, and the demand for iron ore will increase. However, in addition to strict environmental management in Tangshan, the second round of the third round of central eco-environmental protection inspectors will be launched today, and will be stationed in Shanxi, Liaoning, Anhui and other eight provinces (regions) for a period of about one month; the news of environmental protection has been upgraded again, the raw material demand of steel mills has become more cautious, and the port spot procurement rhythm has maintained a rigid demand.
The previous period of crude oil fell 0.51%. On Wednesday, US crude oil fell slightly, hovering below the 60 mark, as data released by the American Petroleum Institute ((API)) showed a higher-than-expected increase in API refined oil stocks, an increase of 4.553 million barrels in gasoline stocks and an increase in refined oil stocks by 2.81 million barrels.
In terms of precious metals, Shanghai gold fell 0.02%, while Shanghai silver rose 0.31%. International gold prices fell slightly on Wednesday, falling from the two-week high hit last day, as a series of strong US data reinforced expectations of a rapid economic recovery. Gold rose to $1745.15 an ounce, its highest level since March 25, on Tuesday as US bond yields fell and the dollar index fell to a two-week low.
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