[SMM Review] the dollar is strong, colored, weak, and black crude oil has been wiped out.

Published: Jun 6, 2019 09:58

SMM News: yesterday, the dollar strengthened, non-ferrous early trading mixed, Shanghai nickel, Shanghai copper fell more than 1%, Shanghai aluminum fell 0.4%, Shanghai lead rose 0.6%, Shanghai zinc rose 0.3%, Shanghai tin rose 0.1%. Black was wiped out again, iron ore fell by more than 2%, hot rolls, coke and threads fell by more than 1%, and coking coal fell by 0.8%.

Zambian President Edgar Lungu said on Tuesday that he was determined to disband copper producer Konkola copper Mines (KCM). The move is bound to exacerbate Zambia's tax and employment disputes with foreign mining companies. The Zambian president had previously expressed his intention to liquidate the KCM, which was strongly opposed by the KCM. On Tuesday, a court hearing on the appointment of KCM's provisional liquidator was postponed for a week until June 11. In June, some refineries began centralized maintenance, and some of them began to overhaul the electrolytic production line after the crude lead production line was overhauled, further reducing the strong supply of electrolysis in the market, or providing strong support for the lead price in June. However, the elasticity of lead prices depends more on downstream consumption. According to SMM, some large storage enterprises began to reduce production in June, making the expectations of half-year reports falsified in the middle of the year. In June, lead prices are expected to continue the pattern of box shock. It is reported that Henan Jiyuan Hongyang lead Industry Co., Ltd. with an annual production capacity of 40,000 tons of lead ingots resumed lead ingot production over the weekend. Due to difficulties in purchasing crude lead, we stopped production in mid-May, stocked up on raw materials and resumed production over the weekend, according to company officials. The company's lead ingots are mainly made of crude lead, mainly purchased from Henan and surrounding areas, and the production of lead ingots is mainly sold to the surrounding battery factories. The company produced about 1500 tons of lead ingots in April and about 800tons in May and is currently out of stock.

According to figures from Brazil's Ministry of Foreign Trade, Brazilian iron ore exports in May were 29 million tons, down 16.2 percent from a year earlier, with an export price of US $65.50 per ton, an increase of 38.2 percent over the same period last year, and exports of US $1.9 billion, an increase of 15.8 percent. Port shipments and foreign mine shipments continue to recover, the overall supply pressure of iron ore has an increasing trend, the downstream start-up rate is still good, and the demand for raw materials is relatively strong. At present, the iron ore K line has fallen to the 20 th line. If you can stand firm on the 20-day line should have a chance to rebound.

Crude oil has tumbled by nearly 2% again. Us crude has entered a technical bear market, falling $11 in just 10 trading days. EIA inventories jumped 6.77 million barrels yesterday, sparking concerns about oil demand.

Today's forecast:

Copper: the overall expansion of the US economy in recent weeks and the dollar's high and stable performance this morning are expected to put some pressure on copper prices, according to a brown book released by the Federal Reserve last night. At present, the center of gravity of Lun Copper and Shanghai Copper has lost all its recent EMA support again, and it is difficult for the technical performance to rebound. The spot market is expected to continue to be dominated by risk aversion today, and close to the domestic Dragon Boat Festival holiday, goods transaction risk increased, the market atmosphere is expected to be more light. It is expected that today's copper 5780 5830 US dollars / ton, Shanghai copper 45800 46200 yuan / ton, spot water 130-180 yuan / ton.

Aluminum: today SMM will update the statistics of the national electrolytic aluminum social inventory, the probability will still go to the warehouse, the material day Shanghai aluminum shock run in 13900 to 14200 yuan / ton, spot water in the current month in 10 to 30 yuan / ton.

Lead: Lun lead closed on the film line, above the 40-day moving average pressure is greater, but due to the existence of the Federal Reserve interest rate cut expectations, the dollar or into the downward channel, to some extent, may be able to boost the non-ferrous trend. Shanghai lead returns to the physical negative line, through the trend of lead prices in the past half a month, basically tamping the fact that the Shanghai lead box is shaking, but we should pay careful attention to it. The low rebound height of Shanghai lead is gradually narrowed, and the short arrangement on the technical side is obvious. There is the possibility of breaking down in the future.

Zinc: in the global economic downturn continues to ferment, the subsequent write-off warehouse receipt can still be determined, Len zinc is still difficult to say goodbye to the weak trend, or weak operation in the vicinity of $2430 to $2480 / ton within a day. Shanghai zinc turned red overnight, but the above 20,000 yuan integer gate is still suppressed. Although there are a small number of downstream reserves before the Dragon Boat Festival, in the case of subsequent refinery increment, the cumulative warehouse is still expected. Shanghai zinc may be difficult to stand on the 20,000 integer bit platform within a day. Within days or finishing operation in 19650 20150 yuan / ton. Material 0 # domestic to 1906 contract 30-liter 10, double Yan liter 10-liter 60

Tin: yesterday, as a result of the rise in the dollar index, Lunxi came under pressure and fell slightly, closing at the negative line, with the physical part near the 5-10 EMA, which is expected to support $18500 per tonne below Lunxi and $19500 per 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, Shanghai tin last night to maintain a low consolidation, is expected to maintain the mainstream trading price of 142500 to 144,500 yuan / ton.

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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[SMM Review] the dollar is strong, colored, weak, and black crude oil has been wiped out. - Shanghai Metals Market (SMM)