[SMM Daily Review] Colored ups and downs are mixed, but black is up slightly across the board.

Published: Jun 05, 2019 16:30 (GMT+8)

SMM6 month 5 news: by the close, non-ferrous rise and fall, Shanghai lead rose 0.6%, Shanghai copper rose 0.43%, Shanghai aluminum, Shanghai zinc rose slightly, Shanghai nickel fell 0.44%, Shanghai tin fell slightly. Black closed higher, the increase is small, thread rose 0.7%, iron ore, hot coil rose 0.56%, bifocal rose slightly.

(Norsk Hydro), a Norwegian company, reported a total profit of 559 million Swiss kroner before tax in the first quarter of 2019, compared with 3.147 billion Swiss kroner in the same period last year. The decline in profit was mainly due to rising raw material prices and falling electrolytic aluminum prices. And the effect of production reduction in Alunorte alumina plant. Since hitting an all-time low of 740t on May 8, inventories have rebounded to 3510 tonnes, a more than two-year high, according to data released on Tuesday. As of May 31, Shanghai tin stocks fell for three consecutive times to 8203 tons. Shanghai aluminium stocks fell to their lowest level since May 1, according to data from the Institute, which fell ten times in the year to May 31, the lowest since September 1, 2017.

Brazilian antitrust agency Cade approved Vale's acquisition of iron ore producer Ferrous Resources, Vale after saying that the acquisition of Ferrous Resources would create logistics synergies for the development and integration of existing infrastructure. Societe Generale raised its forecast for iron ore prices in 2019 to $93 from $78 a tonne. The total inventory of building materials in Guangzhou this week was 1.1811 million tons, down 93200 tons (- 7.31 per cent) from the previous month, and + 2.59 per cent from the same period last year. Of these, thread inventory was 827000 tons, down 72000 tons (- 8.01 per cent) from the previous month,-0.78 per cent from the same period last year, and 354100 tons from the previous month, down 21200 tons (- 5.65 per cent) from the previous month, + 11.42 per cent from the same period last year.

SMM analyst's brief comment on June 5:

Copper: today, the main contract of Shanghai Copper opened at 46520 yuan per ton in the morning. Immediately after the opening, it reached a daily high of 46620 yuan per ton. Due to lack of market confidence, it was difficult for the high level to stabilize, so it fell immediately after reaching the high level. And within the range of 46490 46560 yuan / ton, the center of gravity of the disk moved up slightly to around 46570 yuan / ton in the afternoon. During this period, it tried to reach a high point many times, but it was difficult to stand firm. At the end of the day, it fell slightly and closed at 46490 yuan / ton, up 200yuan / ton. Up 0.43%. Today, Shanghai Copper 1907 contract position decreased by 8086 hands to 211000 hands, while trading volume increased by 8980 hands to 92000 hands. Shanghai Copper 1908 contract position increased 4408 hands to 189000 hands. Recently, we are concerned about the position change of Shanghai Copper 1907 and 1908 contracts. The Shanghai Copper Index fell 10, 000 hands to 604000 today, while trading volume rose 36000 hands to 235000. Last night, as a result of the Fed's speech, it strengthened the market's expectations of a rate cut. The US index fell, copper prices were slightly supported, the overall disk showed a concussive upward trend, short sellers continued to withdraw their funds from the market, and technical KDJ indicators crossed and strengthened. Copper prices to form a small support, and today closed at the physical Dayang column, and up the 10-day EMA, waiting for the outside market guidance at night to test whether Shanghai copper can break through the stable 46600 yuan / ton.

Aluminum: the 1907 contract of Shanghai Aluminum Company opened at 14080 yuan / ton in the morning, fluctuated in a narrow range around 14075 yuan / ton in the afternoon, and the price difference did not exceed 20 yuan per tonne. The bulls entered the market in the afternoon to push the price up, but fell back quickly after touching an intra-day high of 14105 yuan per ton. The end of the day continued to fluctuate at 14085 yuan per ton. The trend of Shanghai aluminum was relatively stable and fluctuated slightly during the day, closing at 14085 yuan per ton, up 10 yuan per ton, up 0.07 percent, trading volume decreased by 68478 hands to 77048 hands, and position volume decreased by 7834 hands to 222000 hands. Today, short positions were mainly reduced, closing at the Xiaoyang line. However, it is still not below the 40-day moving average and the center of gravity is basically the same as yesterday. Judging from the trend of Shanghai aluminum, there is still a certain degree of support at Wansi pass, as aluminum metal fundamentals have not changed significantly today, continue to pay attention to the evening market atmosphere and long short position changes.

Zinc: today, Shanghai zinc completed the main month change, Shanghai zinc 1907 contract opened at 20360 yuan / ton, more into the air at the beginning of the day, Shanghai zinc upward touch high 20390 yuan / ton, but failed to stand firm and quickly fell back to 20275 yuan / ton line to find support, and then the short position left the market substantially. Shanghai zinc was boosted up to a smooth and volatile operation above the daily average, with an operating range of no more than 30 yuan / ton. Shanghai zinc fell to about 20260 yuan / ton, closing down to 20275 yuan / ton, down 30 yuan / ton, or 0.15%, from the previous transaction. Trading volume was reduced by 130000 hands to 310000 hands, and positions by 4100 hands to 262000 hands. The main 1908 contract of Shanghai zinc opened at 19950 yuan / ton, and at the beginning of the day, the short position reduced and raised 20040 yuan / ton, and then the short position increased, dragging down the Shanghai zinc to find support near the daily average line, and then rose slightly. The center of gravity of the operation was moved up to a narrow range of 19960 yuan / ton, the operating range was no more than 30 yuan / ton, the short position at the end of the plate came into the market substantially and pressed the zinc price, and the zinc in Shanghai quickly went down 19845 yuan / ton before finishing slightly, closing down to 19875 yuan / ton. Compared with the previous transaction, it fell 70 yuan per ton, or 0.35%. Trading volume increased by 13658 hands to 18226 hands, and position volume increased by 5838 hands to 267000 hands. During the day, Shanghai zinc ran smoothly as a whole, and the end of the plate was obviously suppressed by short positions, and the whole plate jumped off all EMA. The KDJ index turned down, indicating that Shanghai zinc still had no significant upward action energy. However, the Dragon Boat Festival holiday was just around the corner, and spot trading was boosted to a certain extent. Show that the market consumption is not fully weak, Shanghai zinc is expected to fall at night or no deep decline, night or by the outside market to boost the high opening and finishing operation.

Lead: within a day, the main 1907 contract of lead in Shanghai was opened at 16045 yuan / ton. At the beginning of the day, some short sellers made a profit and left the market, and the concussion of lead in Shanghai rose to around 16100 yuan / ton. How could Nai long leave the market at a high risk, and the pressure on lead in Shanghai was as low as 15965 yuan / ton? After running along the 16010 yuan / ton line, finally closed at 16030 yuan / ton, up 95 yuan / ton, an increase of 0.6%, and the position was reduced by 2684 hands to 49124 hands. Shanghai lead close Xiaoyang line, the recent red is caused by short departure, there is no sign of long entry, so it is difficult to have sustained upward momentum, coupled with the 5, 10-day moving average trend flattened, it is expected that Shanghai lead may continue the horizontal market at night.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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