Home / Metal News / Copper / [SMM Review] Nonferrous decline expanded Green manure Red thin Black Collective fall crude oil plummeted by more than 3 per cent
[SMM Review] Nonferrous decline expanded Green manure Red thin Black Collective fall crude oil plummeted by more than 3 per cent
Jun 4,2019 10:03CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

SMM6 4-month news: colored early green manure red and thin, Shanghai zinc led down 2.1%, Shanghai nickel fell 1.3%, Shanghai aluminum fell 0.7%, Shanghai lead fell 0.7%, Shanghai tin rose 0.2%, Shanghai copper rose slightly. The black army was wiped out, the hot roll fell by more than 1%, the thread fell by 0.6%, the coke fell by 0.4%, the coking coal fell by 0.3%, and the iron ore fell slightly.

Spot prices for refined copper concentrate have fallen to their lowest level in six and a half years as China solidifies its position as a metalworking country. Chinese copper smelters are expected to add nearly 1 million tons of capacity in 2019 and depress concentrate processing fees in the industry. It is understood that processing fees fell to $60 a tonne on Thursday, the lowest level since November 2012, which could lead to reduced profits at the smelter. Vedanta (Vedanta) said on Friday that the Konkola copper mine was no longer producing copper. The mine has been out of production for weeks, according to people familiar with the matter. The miner's wages were delayed by three days after being paid last week. The hearing on Vedanta's Zambian asset liquidation case was postponed to June 4. Copper prices fell endlessly, rose slightly today, in the face of downward pressure on the global manufacturing industry, domestic consumption is depressed, copper prices fundamentals are weak for a long time, short-term supply-side disturbances under the copper price has a certain support.

Steel has entered the off-season of consumption, one after another steel mills began to repair. Tangshan released a new round of production restriction policy documents, market sentiment turned pessimistic, iron ore prices fell more than 3% yesterday. At present, the profit of finished material is low, and the consumption turns cold. Although the supply of iron ore is still tight, the influence of downstream consumption and maintenance will make the iron ore run weakly in the short term.

Crude oil tumbled 3.6%, manufacturing data fell, the global economic slowdown raised concerns about oil demand, and calls within OPEC began to extend production cuts. Crude oil may start a new downward trend on the premise of weaker demand.

Today's forecast:

Copper: follow the reports of a number of Fed chairmen today and are expected to guide the dollar. Shanghai copper closed in a cross-like star last night, on the impulse can not perform enough, it is expected that today's copper price uplink space is limited, to maintain the concussion pattern. Spot due to the market low buying situation has improved, and the current market circulation sources have been slightly tightened, enterprises at the beginning of the month sufficient funds, so the holder's willingness to throw goods is not strong, the quotation is expected to remain strong today. It is expected that today's London copper 5820 to 5870 US dollars / ton, Shanghai copper 46100 to 46600 yuan / ton, spot water 60-140 yuan / ton.

Aluminum: under the expectation of loose cost end alumina price and weak consumption, Shanghai aluminum will run at 14000 to 14200 yuan / ton within a day, and the spot water will be between 10 and 30 yuan / ton in the current month.

Lead: PMI data for both the ISM and Markit manufacturing industries in the United States fell in May and set new lows, while the FOMC voting committee mentioned for the first time the possibility of interest rate cuts this year, with the dollar plummeting to 97.1, while downward concerns about economic growth intensified. The rise and fall of basic metals vary, and the maintenance of primary lead in the domestic lead market has increased, but the recovery of recycled lead brings pressure. Spot lead is expected to fall 75 to 16000 to 16150 yuan per ton today.

Zinc: every other day, zinc breaks down, global economic data is not good, while tariffs on US-Mexican trade are imposed, and subsequent production of auto parts may be greatly affected, further deepening concerns about weak zinc consumption in the market and overall negative macro sentiment. Superimposed fundamentals are weak, lun zinc return expected space is limited, within days or continue weak operation in the vicinity of 2450 to 2500 US dollars / ton. Shanghai zinc closed overnight, pressure above the 5, 10-day moving average, within a day or weak operation in the range of 20000 to 20500 yuan / ton. Material 0 # domestic to 1906 contract affixed 30-liter water 10, double Yan liter water 10-liter water 60.

Tin: the dollar index fell sharply to 97.103 yesterday; coupled with the fact that Lunxi was in a state of overfall in the previous period, Rensi rose sharply last night, with a support of $18500 / tonne below and a resistance of $19500 / tonne above. It is estimated that the lower support of tin in Shanghai will be around 142000 yuan / ton, and the upper resistance will be around 144500 yuan / ton. Spot market, yesterday Lunxi rose sharply, it is expected that Shanghai tin may rise today, Shanghai tin spot mainstream trading price is expected to be 143000 to 145000 yuan / ton.

 

SMM reviews
exclusive reports
headlines recommended

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn