SMM6 March 23: yesterday, the outer disk metal market was all red, and Lun Copper rebounded from a 10-week low on Tuesday. Federal Reserve Chairman Colin Powell will testify at a congressional hearing later, and investors will pay close attention to whether he will give guidance on the pace of tightening monetary policy. There are ups and downs in the LME metal market today. As of 09:30, Lun Copper rose nearly 0.3%, Lun Aluminum fell slightly, Lun lead fell nearly 0.2%, Lunzn Zinc fell nearly 0.1%, Lun Nickel fell slightly, Lunxi rose nearly 0.4%, domestic non-ferrous metals collectively floated red, international copper and Shanghai copper rose nearly 1.5%, Shanghai aluminum rose nearly 1.6%, Shanghai lead rose nearly 0.1%, Shanghai zinc rose nearly 0.3%, Shanghai nickel rose nearly 1.9%. Shanghai tin rose nearly 2.5%.
On the copper side, on the macro front, Federal Reserve Chairman Powell continued to play down inflation concerns, reiterating that inflationary pressures will be temporary, that the Fed will be patient on the issue of raising interest rates, and will not pre-emptively raise interest rates because of high employment or fear of inflation, and the dollar index will fall again at night. In terms of fundamentals, the State Grain and material Reserve Bureau announced that the first batch of sales of copper reserves totaled only 20,000 tons, with market sentiment picking up and copper futures operating in the center of gravity.
[minutes of SMM Morning meeting] Powell reiterated the dovish position that market sentiment picked up and copper closed higher during the pick-up period.
In terms of aluminum, in terms of policy, the first batch of aluminum dumping confirmed that there was no expected difference with the 50,000 tons previously rumored in the market, and the impact was relatively limited. In terms of fundamentals, the current consumption shows signs of weakening to the off-season, but the reduction of electrolytic aluminum production in Yunnan and Inner Mongolia makes the turning point backward. Domestic aluminum prices are expected to remain broadly volatile in the short term.
[minutes of SMM Morning meeting] the Federal Reserve reiterates its dovish position on the upstream of Zhenlun Aluminum.
In terms of lead, the trend of Shanghai lead was weak in late trading, and during the day, attention was paid to the middle rail of Bollinger Road under Shanghai lead, 15450 yuan / ton first line support. Under the effect of the news of the removal of lead ingots, lead prices remain high, but with the repair of recycled lead profits, the supply of recycled lead is expected to recover, and the short-term action on lead prices may be limited. It is expected that the average price of SMM1# lead today.
[minutes of SMM lead Morning meeting] lead strengthens again overnight and there is no significant improvement in bulk orders in the spot market for the time being.
Zinc, overnight Shanghai zinc recorded a long shadow positive column, the upper 5-day moving average to form a pressure, the lower Bollinger Road to provide support. Short-term zinc fundamentals have not changed significantly, the first batch of zinc dumping and storage of 30,000 tons of news landed, but considering that there is no time for the specific implementation of the dumping and storage process, zinc prices continue to lead to low and strong shocks.
[summary of SMM Zinc Morning meeting] dumping and Storage News Landing Zinc Price shock repair
In terms of black series, threads rose nearly 0.1%, hot rolls fell nearly 0.2%, coking coal rose nearly 2.7%, coke rose nearly 2.8%, iron ore rose nearly 1.2%, stainless steel rose nearly 2%. In terms of coke, Shanxi coke spot market was stable and strong yesterday. Some coke enterprises in Linfen and Changzhi area have environmental protection, maintenance and production restrictions, and the output of Shanxi area has declined due to environmental protection inspection. Recently, coking coal safety accidents in Shanxi have frequently superimposed July 1 security, which has a great impact on coking coal supply. Overall, affected by the recent relevant production restrictions policies, superimposed upstream coking coal procurement difficulties and prices rose sharply, coke enterprises have active and passive production restriction behavior, coke supply tightened, prices have an upward trend.
"[minutes of SMM Steel Morning meeting] the black line continues to be weak, concussive and the overall transaction is weak.
Crude oil rose nearly 1.4% in the previous period, and crude oil futures closed slightly lower on Tuesday as the OPEC alliance of the Organization of Petroleum Exporting countries ((OPEC)) and its allies discussed increasing oil production. Brent crude rose above $75 a barrel for the first time in more than two years. The (EIA) of the US Energy Information Administration will release its crude oil inventory report at 22:30 on Wednesday.
In terms of precious metals, Shanghai gold fell slightly, Shanghai silver fell nearly 0.3%, and gold futures prices fell for the third time in four trading days on Tuesday. Investors weighed the congressional testimony of Federal Reserve Chairman Colin Powell to explore the next move in gold prices. Last week the Fed surprised markets by saying that a number of monetary policy makers expected interest rates to rise twice by the end of 2023.
As of 09:30, the status of contracts in the metals and crude oil markets:
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