SMM10 March 20: the outer metal market was mixed yesterday, with Lunni surging to an 11-month high on Monday, as strong demand from stainless steel mills spurred new buying, while industrial metals were generally supported by a weaker dollar and healthy economic growth in China, the largest consumer. There were ups and downs in the LME metal market this morning. As of 09:35, Lunni was up nearly 0.4%, Lun Aluminum was up nearly 0.3%, Lun Copper was up nearly 0.1%, Lunxi was flat, Lun Zinc was down nearly 0.1%, Lun lead was down nearly 0.4%. Domestically, non-ferrous metal green manure is red and thin, Shanghai lead is down nearly 1.3%, Shanghai Nickel is down nearly 0.5%, Shanghai Aluminum is down nearly 0.3%, and Shanghai Copper is up slightly. Shanghai zinc and nickel rose nearly 0.8%.
On the copper front, the Democratic Party of the United States and the White House have narrowed the differences over the stimulus bill and plan to continue negotiations today to determine whether the stimulus bill can be passed before the general election. The deadline for negotiations is approaching, the market is still pessimistic about the final passage of the bill, the outlook for negotiations remains uncertain, the dollar index fell slightly at night, and copper futures rose slightly.
[minutes of SMM Morning meeting] the amplitude of copper during the prolonged stalemate in negotiations between the parties is obvious at night.
Aluminum, after entering the autumn and winter season, be on guard against the impact of a possible second outbreak of the epidemic on market trading sentiment. In addition, foreign countries pay attention to the US election process and the remarks and plans on economic development in Europe and the United States, while China pays attention to inventory changes in the fourth quarter, consumer feedback and the actual new investment in supply-side production capacity, and the recent trend of aluminum prices is relatively strong. It is expected that there is limited room for continuous upside in the short term, so pay attention to the possible pullback risks.
[summary of SMM Morning meeting] in October, the performance of building profiles is generally low, and the trend of aluminum price is on the strong side under the condition of low inventory.
In terms of lead, Lun lead ended in four consecutive overcast overnight, and it is expected that the international lead price will fluctuate in the short term. Overnight Shanghai lead closed down, downstream demand to maintain rigid demand procurement and recycled lead cost line support, may stop falling in the short term. The price of lead in SMM1# is expected to fall by 50-100 yuan per ton today.
[minutes of SMM Morning meeting] Lun lead closed Yang, Shanghai lead closed down, recycled refined lead received a small discount.
On the zinc side, expectations of a deal on a new round of fiscal easing before the US election have boosted buying intentions and added to the weakness of the dollar. However, the continuous fermentation of overseas outbreaks limits the increase of Lun Zinc. In terms of zinc in Shanghai, macroscopically, the US election is approaching and the Brexit event continues to rise, and the secondary fermentation superimposed by overseas epidemics has led to uncertainty in the supply and demand of refined zinc at the end of the year, and zinc prices are expected to fluctuate in a narrow range in the short term.
[minutes of SMM Morning meeting] Macro-instability is still expected to be dominated by short-term Shanghai Zinc concussion.
In terms of black, threads fell nearly 0.4%, hot rolls fell slightly, stainless steel fell nearly 1%, coke fell nearly 0.8%, coking coal fell nearly 0.5%, iron ore fell nearly 0.3%, iron ore fell after the opening of morning trading yesterday, and the port spot market was basically stable in early trading compared with last Friday. The main contract I2101 accelerated its decline in the afternoon and finished weakly in the afternoon. Some steel companies said that they may have procurement plans this week, but at the beginning of the week, they mainly wait and see; some steel companies are buying stocks at a bargain today, and the purchasing mood is OK; after the close, the market turnover has picked up. Today, the turnover of PB powder in Tianjin was 880 yuan / ton, while that of PB powder in Shandong was 860-865 yuan, down 0-5 yuan / ton compared with last Friday. Tangshan area to start again from Monday to Wednesday heavily polluted weather II emergency response notice, coupled with the recent macro data have been released less than expected, still have a certain degree of suppression on iron ore prices.
"views of SMM Steel Morning meeting on October 20th
Crude oil fell nearly 1 per cent in the previous period, while US oil fell slightly on Monday, boosted by concerns about a surge in new cases around the world and plans to increase production in Libya, but provided some support for hopes of a US fiscal plan. Analysts are also watching Monday's OPEC ministerial supervisory committee meeting. Russian Energy Minister Nowak said the committee recommended the full implementation of the alliance's production reduction agreement.
In terms of precious metals, Shanghai gold fell nearly 0.1%, while Shanghai silver rose nearly 0.8%. Comex gold futures closed higher on Monday. Analysts said that there were rumors that the US Congress would reach an agreement on a new round of fiscal easing before the 2020 presidential election, which would help boost the willingness to buy. In addition, the weakness of the US dollar helps gold prices. Investors have adapted to repeated negotiations between House Speaker Pelosi (Nancy Pelosi) and Treasury Secretary Nuchin (Steven Mnuchin) on providing a new round of funding to American companies and workers. The economic weakness caused by the novel coronavirus epidemic has dealt a heavy blow to American companies and workers.
As of 09:35, the status of contracts in the metals and crude oil markets:
