SMM6: by the end of the day, most of the non-ferrous metal fell, Shanghai nickel fell 0.73%, Shanghai tin fell 0.52%, Shanghai copper fell 0.92%, Shanghai lead fell 0.67%, Shanghai zinc fell 1.17%, Shanghai aluminum fell 0.72%. Black also underperformed, with iron ore down 2.41 per cent, coking coal nearly 1 per cent, coke nearly 3 per cent, threads more than 2 per cent and hot rolls more than 1.5 per cent.
The president of the No. 2 trade union at the Chuquicamata copper mine said that the workers of the No. 1, No. 2 and No. 3 trade unions at the Chuquicamata copper mine went on strike at 5 a.m. on Friday, and all roads to the copper mine were blocked. The strike is likely to have a more far-reaching impact, with Chuquicamata producing 321000 tons of copper last year, accounting for about 2 per cent of the global copper supply, so the strike is likely to tighten the global copper supply. SMM believes that in May spot copper concentrate TC maintained a downward trend, the current clean mine spot TC at US $60 / ton, directly pointing to the psychological threshold of US $60 / ton, some of which have been traded below 60. The restart of Codelco's Chuquicamata copper smelter has been blocked for further pressure testing at the smelter. The 1908 contract of Shanghai Aluminum main Company opened at 13860 yuan / ton in the morning, fell below the daily average at the beginning of trading, and was lowered by 13800 yuan / ton under the pressure of short positions, and then ran below the daily average for the whole day, making it difficult to make an upward breakthrough, during which it approached the 13800 yuan / ton barrier twice. As a result of always upward weakness, near the end of the market short into the market to take advantage of the situation, aluminum prices are difficult to support directly fell to the lowest point of the day 13765 yuan / ton, refreshing the lowest price since the end of March this year. Today's macro atmosphere is not good, in the US Index high background superimposed fundamentals are on the short side, the trend of aluminum prices is weak, it is expected that after the change of months, aluminum prices will continue to maintain a weak shock, the upper space is relatively limited, and continue to pay attention to changes in long and short positions in the evening.
The Asian dollar index rose slightly and is now trading at 97.567, up 0.025%, supported above the 30-day moving average. During this period, ECB Executive Board Kohl said that the euro zone structural weakness, the lingering vulnerability will not disappear for a short time. At the same time, Bank of America said the Federal Reserve could cut interest rates to near zero by the end of next year, supporting the dollar.
Oil prices gave up some of their gains after rising earlier on Monday, and Secretary of State John Pompeo said on Sunday that the United States would take all necessary action to ensure the safety of important maritime routes in the Middle East after tensions escalated last week over oil tanker attacks.
SMM analyst's brief comment on June 17:
Lead: within a day, the Shanghai lead 1907 contract was opened at 16040 yuan / ton. At the beginning of the day, Shanghai lead was running at 16050 yuan / ton below the daily average. During the period, it was once as low as 16020 yuan / ton. In the afternoon, more air increased and decreased, resulting in a sudden rise in Shanghai lead in non-ferrous metals. The Shanghai lead concussion platform moved to around 16135 yuan / ton, and recorded an intraday high of 16200 yuan / ton, finally reported at 16145 yuan / ton, up 50 yuan / ton, an increase of 0.31%, the Shanghai lead concussion platform moved to 16135 yuan / ton, and recorded an intraday high of 16200 yuan / ton, finally reported at 16145 yuan / ton, up 50 yuan / ton, an increase of 0.31%. Reduce your position by 1948 to 42338. Shanghai lead close Xiaoyang line, above the 40-day moving average there is a strong suppression, the lower six levels have support, and weekly level, maintain along the 5-day moving average consolidation, is expected to Shanghai lead or continue the box concussion trend at night.
Zinc: the main 1908 contract of Shanghai zinc opened at 19975 yuan / ton at the beginning of the day. At the beginning of the day, Shanghai zinc went down to find support in the first line of 19890 yuan / ton, and then went up and tried to break through the daily average. After a narrow concussion of 19950 yuan / ton, the daily average was pressed again, still unable to stand, and then down to 19880 yuan / ton. Trading volume fell 61500 hands to 372000 hands, while position increased 27226 hands to 313000 hands. The main contract of capital transfer within the day, and more than 27000 additional positions, inventories continue to record an increase, superimposed spot weak trend, superimposed heavy technical index suppression, Shanghai zinc follow-up action can not be enough, evening or pressure daily average finishing.