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[SMM Daily Review] the dollar weakens, colored rises and falls are mixed, brown bicoke rises, and crude oil tumbles by more than 2 per cent.
Jun 6,2019 16:01CST
The content below was translated by Tencent automatically for reference.

SMM6 month 6 news: the dollar weakened in Asian trading, by the end of the day, non-ferrous rise and decline, Shanghai zinc lead rose 1.92%, Shanghai lead rose 0.47%, Shanghai tin rose slightly, Shanghai copper fell 0.95%, Shanghai aluminum fell 0.82%, Shanghai nickel fell 0.65%. Black also rose and fell, bifocal rose, coke rose 1.66%, coking coal rose 0.8%, iron ore fell 0.84%, thread fell 0.16%, hot roll fell slightly.

According to a SMM survey, the weekly opening rate of the SMM renewable lead smelter in the three provinces this week was 52.3%, up 0.8% from the previous month. Among them, the operating rate of Jiangsu reclaimed lead smelter was 50.0%, and that of Anhui reclaimed lead smelter was 36.7%, which was 4.0% lower than that of last week, mainly due to the failure of Huaxin smelter in Anhui Province. The operating rate of Henan renewable lead smelter is 75.4%, up 8.0% from last week, mainly because Henan Jinli's two production lines are basically full this week. Copper stocks in the Shanghai bonded area fell 30, 000 tons to 498000 tons on Thursday from Friday, according to SMM research. In May, the domestic smelter overhauled more, and the economic benefits of scrap copper increased, resulting in the shortage of domestic electrolytic copper spot and the opening of import window, more foreign trade copper clearance entered the country. According to SMM research, a steel plant in East China this week high nickel iron transaction price of 955 yuan / nickel, to the plant including tax, compared with the last purchase price down 5 yuan / nickel point, there is a transaction, and then or due to the impact of the price continues to fall, the steel mill suspended 955 yuan / nickel inquiry.

According to the latest data from the China Iron and Steel Association, the average daily output of crude steel in key steel enterprises in mid-May was 2.038 million tons, down 0.38 per cent from the previous ten days. At the end of mid-May, the steel inventory of key steel enterprises was 12.683 million tons, an increase of 1.81 per cent over the end of the previous decade. Iron ore K line grew under the shadow, the closing price stood steady on the 20th EMA, indicating that there is strong support below, as the national blast furnace continues to maintain a high start. The most tight phase on the supply side has passed, and data such as departure and shipment show that, despite the rebound, the supply gap will continue for some time and iron ore prices remain resilient enough.

Crude oil fell more than 2%, and an increase in U. S. shale oil supply superimposed a global economic slowdown to dampen demand, keeping oil prices under pressure.

SMM analyst's brief comment on June 6:

Copper: today, the main contract of Shanghai copper opened at 45990 yuan / ton in the morning. After the opening of trading, due to the active entry of short positions into the market, the copper price formed a concussion and weakened situation, and reached the lowest level of 46580 yuan / ton in the day, and settled at a low level near 45870 yuan / ton. Subsequently, the market rose slightly, and the center of gravity continued to move upward in the afternoon and remained around 46000 yuan / ton, during which it reached an intraday high of 46050 yuan / ton and closed at 46010 yuan / ton, down 440yuan / ton, or 0.95 per cent. Today, Shanghai Copper 1907 contract position increased by 900 hands to 212000 hands, and trading volume increased by 35000 hands to 128000 hands. Shanghai Copper 1908 contract position increased by 11000 hands to 200000 hands; contract position is only about 10, 000 hands, pay attention to 07, 08 contract exchange situation. The Shanghai Copper Index increased its position by 11000 hands to 615000 hands today, while trading volume increased by 124000 hands to 358000 hands. Last night, as a result of the sharp increase in crude oil stocks, oil prices hit a new low, and with the bright non-manufacturing data from the US ISM, the US dollar was boosted. Double factors put pressure on copper prices. Short positions actively entered the market, and copper prices fell below the 46000 yuan / ton mark. The dollar continued to stabilize at a high this morning, copper prices under pressure, continue to low shock finishing. Today, Shanghai copper closed at the physical Dayin column, the KDJ index cross weakened, MACD green column growth, waiting for the guidance of the outside market at night, test whether Shanghai copper can hold 45800 yuan / ton.

Aluminum: the 1907 contract of Shanghai Aluminum main Company opened at 14015 yuan / ton in the morning, fell below the four-thousand mark at the beginning of trading, and then was difficult to go up below the daily average. It went down all the way. Although it tried to rise back during the period, it eventually stopped at 14010 yuan per ton. Near the close, the lowest price in the day was 13950 yuan / ton, refreshing the lowest price since May 7. Today, it closed at 13950 yuan / ton, trading volume increased by 54900 hands to 132000 hands, position volume decreased by 3516 hands to 219000 hands, and the position moved backward. The main company 1907 closed in the middle vaginal line, below pierced the 60-day moving average, the center of gravity sank than yesterday, the daily MACD green column elongated, KDJ three lines down. Metal ups and downs during the day, although aluminum stocks continued to drop more than 60, 000 tons on Thursday, but the future consumption expectations are not strong superimposed macro negative atmosphere, it is difficult to go up unilaterally within the day, 1908 contract short positions significantly increased, we can see that the future market expectations are on the short side. Today's aluminum price trend is weak, pay attention to the release of relevant macro news during the holiday, closed in the evening.

Zinc: the main 1908 contract of Shanghai zinc opened at 19945 yuan / ton at the beginning of the day. At the beginning of the day, the main contract of Shanghai zinc was opened at 19945 yuan / ton. At the beginning of the day, the main contract of Shanghai zinc was opened at 19945 yuan / ton, and the short position was reduced. Shanghai zinc reached 20030 yuan / ton, and then the bulls left the Shanghai zinc market to find support around the daily average of 19930 yuan / ton, and Shanghai zinc rose strongly. Break 20000 yuan / ton integer level suppression, touch high 20295 yuan / ton. It closed up 20250 yuan per ton, up 375 yuan per ton, down 1.89 percent, with trading volume up 156000 hands to 328000 hands and positions down 15036 hands to 252000 hands. During the day, Shanghai zinc stopped yin and yang, broke the 5-day and 10-day EMA, and the KDJ index turned upward obviously, reflecting the strong action energy of Shanghai zinc. Mainly due to the domestic Shanghai, Guangdong and Tianjin social inventory recorded a small decline, giving zinc prices a certain degree of support. Within the day 06 and 07 contract monthly difference expanded to 610 yuan / ton, 06 and 08 contract monthly difference expanded to 1050 yuan / ton, the squeeze market continued, the near strong far weak pattern reflects the further strengthening, tonight domestic no night market.

Lead: within a day, the main 1907 contract of lead in Shanghai was opened at 16010 yuan / ton. At the beginning of the day, boosted by the strong trend of the external market, bulls showed signs of entering the market, prompting lead in Shanghai to climb to 16145 yuan per ton at one time. After that, the lead in Shanghai was weak and fell back to 16080 yuan per ton. Finally, it closed at 16090 yuan per ton, up 75 yuan per ton, or 0.47 percent, and the position was reduced by 2852 hands to 46272 hands. Shanghai lead closed long foot Xiaoyin line, strong lead is still difficult to drive Shanghai lead out of the weak trend, indicating that Shanghai lead in the downstream consumption recovery, it is more difficult to get out of the trend upward market, but the support of the lower six levels still exists. In the near future, we will focus on the supporting role of Wanliu psychological barrier.

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