SMM6 March 29: the outer disk metal market was mixed yesterday, with Lun Copper falling slightly on Monday as slowing profit growth of industrial companies in China, a major consumer of metals, rising LME inventories and low premiums undermined enthusiasm for copper. The LME metal market fell across the board today. As of 09:20, Lun Copper fell nearly 0.2%, Lun Aluminum fell nearly 0.6%, Lun lead fell nearly 0.3%, Lun Zinc fell nearly 0.6%, Lunxi Nickel fell nearly 0.4%, Lunxi was flat, domestic copper fell nearly 0.2%, Shanghai Copper and Shanghai Aluminum fell nearly 0.1%, Shanghai lead fell nearly 0.4%, Shanghai Zinc fell nearly 0.3%, Shanghai Nickel fell nearly 1.5%. Shanghai and tin rose nearly 0.4%.
On the copper side, on the macro side, the people's Bank of China held a regular monetary policy meeting in the second quarter yesterday to emphasize the need to strengthen international macroeconomic policy coordination, prevent external shocks, and do a good job in cross-cyclical policy design; and funds have been invested in the past two days, indicating that the central bank has actions to maintain stable liquidity. In foreign countries, there is not much news overnight, the market is still very cautious about when the Fed will raise interest rates under inflation concerns, and copper futures maintain a weak and narrow volatility trend at night. Attention is about to be announced.
[minutes of SMM Morning meeting] Copper continues to fluctuate overnight and the spot market is likely to maintain a jigsaw trend.
In terms of aluminum, from a fundamental point of view, the progress of resumption of production in supply-side Yunnan is still relatively slow, while the production progress of major new projects in Guizhou, Yunnan and Guangxi has been continuously delayed, and the supply of electrolytic aluminum is relatively tight; demand-end profiles, strip foil and other major downstream plates have gradually stepped into the off-season, so the weak pattern of supply and demand in the aluminum market is expected to become more prominent.
[summary of SMM Morning meeting] Macro-level Promotion of Zhenlun Aluminum Qilianyang domestic supply and demand pattern continues
In terms of lead, the Shanghai lead bulls entered overnight, recording a long shadow small positive pillar, ending the daytime decline briefly and stabilizing, but still slipping below the middle rail of Brin Road. In the context of getting rid of the warehouse, Lun lead shock upward, and out of seven Lianyang, while the domestic time to the end of the month, it is the middle of the year, upstream and downstream enterprises are more active to withdraw funds, supply and demand asymmetry, lead ingot inventory or continue to increase. It is expected that the average price of SMM1# lead today.
[minutes of SMM lead Morning meeting] lead continues to be strong on the outside and weak on the inside. Domestic lead ingot stocks may continue to increase this week.
In terms of zinc, overnight Shanghai zinc stop yin turned red, the upper 10-day moving average formed pressure, the lower 5-day moving average to provide support. Recently, there are still less than the arrival of smelters and SMM social inventory is still low, short-term support for zinc prices, but the north is affected by environmental production restrictions, galvanizing enterprises start materials to limit its operating height.
[minutes of SMM Zinc Morning meeting] fundamentals are gradually weakening and zinc prices are weak to rebound.
In terms of black, thread and hot coil rose nearly 1.2%, coke fell nearly 1.3%, coke fell nearly 2.6%, and iron ore rose nearly 0.5%. In terms of threads, news, the NDRC predicted at the weekend that coal prices would enter the downward channel in July, which was also the main reason for the decline in raw materials yesterday. The logic is that after July 1, the safety inspection will be weakened and the supply gap will recover. At that time, if the raw material price falls, it may form a resonant downward trend with the finished wood price, so the uncertainty of cost support increases. Short-term steel prices will continue to run in a range of shocks.
"[minutes of SMM Steel Morning meeting] yesterday even the iron was strong and volatile, and the price in the port spot market in early trading was basically stable compared with last Friday.
The previous period of crude oil fell nearly 2%, while international crude oil futures fell 2% on Monday to an one-week low, having hit its highest level since 2018 earlier in the day. The surge in novel coronavirus cases in Asia and Europe ahead of this week's OPEC meeting curbed the rise in oil prices.
In terms of precious metals, Shanghai gold fell nearly 0.3%, Shanghai silver fell nearly 0.3%, and international gold futures prices rose slightly, as investors worried that infection with the highly contagious Delta strain would soar and expected the US Federal Reserve (FED/ Fed) to raise interest rates earlier.
As of 09:30, the status of contracts in the metals and crude oil markets:
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