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[SMM Daily Review] Nonferrous green manure red and thin overall weakness black afternoon turn up crude oil fell more than 3%
Jun 4,2019 16:18CST
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Source:SMM
The content below was translated by Tencent automatically for reference.

SMM6 month 4 news: by the end of the day, colored green manure red and thin, Shanghai zinc, Shanghai nickel are down more than 1%, Shanghai lead down 0.87%, Shanghai aluminum down 0.81%, Shanghai tin up 0.24%, Shanghai copper up 0.19%. Black afternoon rose, iron ore up 0.63%, coke up 0.57%, thread up 0.29%, coking coal up 0.25%, hot roll down 0.22%.

Copper prices have been declining under the influence of negative macro factors, and rose slightly today. However, in view of the continued pressure on the macro surface and the fact that terminal consumption is not ideal, copper prices are on the short side in the long run, but the short-term supply side still exists. There is a certain degree of support for the price of copper. Global copper production fell 1.8 per cent between January and February this year, with declines in Chile and Indonesia offsetting growth in other countries, according to the latest figures released by (ICSG), an international copper research group. But there was a global copper glut of 40,000 tons over the same period. Global refined copper production from January to February this year was the same as in the previous period. The apparent consumption of refined copper from January to February this year was also flat. China's apparent consumption has increased by 4%, and India has also seen an increase. But demand from Japan, the European Union and the United States all fell.

Iron ore closed higher today after five consecutive falls. SMM tracking data show that a total of 97 ships arrived at China's ports from 5.26 to 6.1, with an estimated arrival volume of 14.25 million tons, an increase of 3.145 million tons over the previous period. During the period, exports from Australia are expected to increase by 1.43 million tons to 15.69 million tons, while those from Brazil are expected to increase by 960000 tons to 6.98 million tons. The arrival of iron ore in Hong Kong and Australia and Brazil have shown a significant rebound, the subsequent decline in port stocks may be expected to narrow. Steel, affected by the weather, short-term demand for building materials has fallen, high supply, inventory to slow down, the current downstream demand is still strong, short-term or volatile trend.

Crude oil fell 3.76%, and the president of the Vido Group said OPEC+ would extend the production reduction agreement into the second half of the year because of market uncertainty. Saudi Arabia's oil production hit an all-time high last month, according to the latest data released by foreign media, largely filling the supply gap caused by tougher US sanctions against Iran.

SMM analyst's brief comment on June 4:

Lead: within a day, the main 1907 contract of lead in Shanghai was opened at 15995 yuan / ton. At the beginning of the day, the lead in Shanghai was briefly consolidated along the daily average, and then the short positions continued to smash the game. The lead exploration in Shanghai was as low as 15860 yuan / ton, and the center of gravity moved down during the day. Some short sellers, fearing the psychological support level of 15800 yuan / ton, chose to make a profit and leave the market. Shanghai lead returned to 15935 yuan / ton concussion, near the close, short opening and long reduction, Shanghai lead concussion down again, and finally closed at 15870 yuan / ton, down 140 yuan / ton. It fell 0.87%, and its position was reduced by 312 hands to 51808. Shanghai lead in the negative line, the upper EMA is a short arrangement and downward operation, Shanghai lead at night may test 15800 yuan / ton psychological gate support, if the psychological gate is broken, it will open the downward space.

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