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[SMM Daily Review] the capital market has risen sharply, iron ore has risen by more than 3 per cent, coke thread has risen by more than 3 per cent.
Jun 11,2019 15:37CST
The content below was translated by Tencent automatically for reference.

SMM6 month 11 news: today's capital market good news. In the stock market, the Shanghai Composite Index closed up 73.59 points, or 2.58%, at 2925.72 points, while the Shenzhen Composite Index closed up 325.89 points, or 3.74%, at 9037.67 points. The China growth Enterprise Market Index closed up 56.01 points, or 3.91%, at 1487.35 points on Tuesday. Non-ferrous metals rose across the board, Shanghai copper, Shanghai tin, Shanghai nickel rose more than 1%, Shanghai zinc rose 0.68%, Shanghai aluminum rose 0.57%, Shanghai lead rose 0.22%. On the black side, the same firepower is on, iron ore is up, coke is up 3.66%, threads are up 3.51%, coking coal barriers are 2.75%, and hot rolls are up 2.7%.

Recently, due to the increase in the maintenance of primary lead refineries, supply tightening expectations to promote the rise of lead one after another, while the downstream battery market consumption is depressed, spot lead is weak. In addition, since the end of May, environmental protection in Jiangxi and Guizhou has come to an end, and recycled lead refineries have resumed work one after another, superposing the new production lines of licensed enterprises. According to SMM research, as of Friday (June 6), the weekly operating rate of SMM renewable lead smelter in the three provinces was 52.3%, up 0.8% from the previous month. With the relaxation of the supply of reclaimed lead (reduced lead), the reclaimed refined lead sticker expanded to 150 yuan / ton and a few even 200yuan / ton to the average price of SMM1# electrolytic lead. In the morning, Russia and nickel generally reported water leveling compared with Wuxi 1906, and Jinchuan nickel generally reported a water rise of 1000 yuan to 1100 yuan / ton compared with Wuxi 1906 contract. Today's market after yesterday's decline, stabilized and rebounded, traders reported last night in the 95800 yuan / ton position and this morning's 96100 yuan / ton plate near the transaction, mainly Russian nickel. With the rise of the disk, downstream transaction enthusiasm declined, basically wait and see, some traders replenish goods, now downstream procurement is basically a small amount of replenishment. Jinchuan ex-factory price quoted 97300 yuan / ton, the mainstream transaction at 96500 to 97600 yuan / ton.

On the news side, the market rumors Rio Tinto in July, August production supply or affected, yesterday even the main iron contract rose at the end of the day; today, the iron continued to pull up, the main contract rose in the afternoon. With regard to Rio Tinto rumors, specific reasons, or because the pb block was affected by the previous hurricane, quality problems, resulting in the next two months may not be able to deliver the long trade agreement (that is, the small-long association of some steel mills), so Rio Tinto will cancel the July and August small-long agreement, and delay delivery, and may also reduce the amount of spot investment. Further tightening on the supply side is expected to strengthen. In addition to news-driven, iron ore supply and demand fundamentals are still "strong." Iron ore stocks at 35 ports tracked by SMM stood at 112.44 million tons as of June 7, down 2.41 million tons from 114.85 million tons last week and 34.08 million tons from the same period last year. And the daily average port volume increased by 66000 tons to 2.711 million tons compared with last week. At the same time, the June blast furnace opening rate surveyed by SMM is expected to continue to grow by about 0.27% to 89.85%. The demand for iron ore is expected to continue to increase, and the port spot market price continues to be strong.

Crude oil fell 0.74 percent, and Saudi crude oil production fell to a four-and-a-half-year low of 9.7 million barrels a day in May, down 120000 barrels a day from April. Iran's production in May was 2.45 million barrels a day, and it was difficult for Iran to find a buyer after the United States lifted Iran's crude oil exemption.

SMM analyst's brief comment on June 11:

Aluminum: Shanghai aluminum main company today position change to 1908 contract, 1908 contract opened at 13950 yuan / ton in the morning, opened with a negative line, the lower shadow line lower 13935 yuan / ton in the lowest point in the day, before noon to long increase position, Shanghai aluminum force climbed along the 5th line to 13970 yuan / ton first-line narrow shock, late trading while short position reduction to explore the high intraday high 13985 yuan / ton, finally closed at 13985 yuan / ton, up 75 yuan / ton, up 0.54%, the end of the day to 13985 yuan / ton, up 75 yuan / ton, an increase of 0.54%, the end of the day to close at 13985 yuan / ton, up 75 yuan / ton, up 0.54%, the end of the day at 13985 yuan / ton, up 75 yuan / ton, an increase of 0.54%. Trading volume increased by 2112 hands to 64584 hands, and positions increased by 2042 hands to 219000 hands. At the end of the day, the second consecutive closing line closed at a reverse Baoyang line, but the center of gravity was still below the daily average, the daily MACD green line was shortened, and the KDJ third line converged upward. In the afternoon, the trading atmosphere in the market improved, the stock market rose by the limit, the futures market was driven, the metal market turned red almost across the board, and the aluminum price rose more regularly than other metals, as there was no significant change in fundamentals for the time being. Continue to pay attention to the market atmosphere and changes in long short positions in the evening.

Nickel: Shanghai nickel 1907 opened at 95860 yuan per ton today. In the afternoon, Shanghai nickel below the 96000 yuan / ton gate support, the upper pressure of 96700 yuan / ton line, interval concussion upward. In the afternoon, Shanghai nickel rose sharply, touching 97870 yuan / ton after the center of gravity fluctuated around the 10-day moving average of 97500 yuan / ton, closing at 97250 yuan / ton. Throughout the day, Shanghai nickel closed at the Xiaoyang line, breaking the pressure level of the 5-day moving average, and the shadow line reached the 20-day moving average. The settlement price rose 970 yuan per ton, or 1.01 percent, compared with the previous trading day. Trading volume increased by 402000 hands to 706000 hands, and position volume decreased by 800 hands to 174000 hands. Shanghai nickel index capital inflow of 226 million yuan. In the evening, we will pay attention to whether Shanghai Ni can stand on the 5-day moving average. Night should pay attention to the May PPI annual rate (%) and May core PPI annual rate (%); the United States API crude oil and gasoline inventory changes in the week ended June 7.

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