Home / Metal News / Copper / [SMM Daily Review] Shanghai nickel rose more than 2 per cent, Shanghai zinc rose 1.7 per cent, and most of the red and black iron ore deposits rose by more than 2 per cent.
[SMM Daily Review] Shanghai nickel rose more than 2 per cent, Shanghai zinc rose 1.7 per cent, and most of the red and black iron ore deposits rose by more than 2 per cent.
Jul 30,2019 17:00CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

"HKEx adds dollar-denominated small metal contracts: flexible operation, low transaction fees and integration with domestic and foreign markets

SMM7 month 30 news: today's non-ferrous metals floating red, by the end of the day, Shanghai nickel rose nearly 2.1%, Shanghai zinc rose nearly 1.7%, Shanghai lead rose nearly 0.9%, Shanghai copper rose nearly 0.8%, Shanghai aluminum rose nearly 0.4%, Shanghai tin weak fluttering red; In terms of stainless steel, the rise of "demon nickel" in early July led to the upward price of 300series stainless steel. From July 3 to July 19, Shanghai nickel climbed from 97170 yuan / ton to 118430 yuan / ton, an increase of 21.9%. In the same period of time, 304stainless steel (Wuxi market, hot rolled coil) also gradually groped from 13700 yuan / ton to 14500 yuan / ton, an increase of 5.8%, which is not satisfactory compared with the increase of nickel price. On July 19, the price of hot rolled narrow strip August futures in Qingshan reached 14800 yuan per ton, up 1300 yuan from July 10. At this stage, the price increase of stainless steel basically follows the passive rise of nickel price, and the large manufacturers take the lead to push up the price. "[SMM analysis] raise prices before discounting? 304 stainless steel ushered in 8.8 promotion festival in advance. "

In the black system, iron ore rose by nearly 2.3%, coking coal faintly fluttered red, thread fell by nearly 0.5%, hot roll fell by nearly 0.9%, and coke fell by nearly 1.3%. On the news side, Tangshan City, "August air pollution prevention and control plan" proposal disclosed, this is the Tangshan Ecological Environment Bureau to the Tangshan Municipal Government to issue a proposal, the application date is July 28, 2019. The proposal document shows that Tangshan slightly relaxed the production restrictions for iron and steel enterprises in August, while the environmental protection measures for the coking industry have been tightened. "View detail

Crude oil rose nearly 0.6% on the news, and optimism is expected this week for the Fed to cut interest rates for the first time in more than a decade, supporting fuel demand growth in the world's largest oil consumer, according to Wenhua Financial News.

 

In terms of capital flows today

 

Today, the Wenhua Commodity Index as a whole attracted 1.434 billion capital inflows. Among them, iron ore increased positions upward, assisted by 861 million funds, but sugar was reduced by bulls, the loss of nearly 200 million funds. The ability of absorbing money in stock index futures has not been reduced, and the three brothers have joined forces to include more than 3 billion funds. In the aspect of position change, methanol was active, the increase of position was the first, the evacuation behavior of PTA empty sheet was obvious, and the position was reduced by 156000 hands per day.

SMM analyst's brief comment on July 30

 

Copper: today, Shanghai Copper main contract 1909 opened at 47280 yuan / ton early in the morning, opening to the afternoon trend are stable, the center of gravity is basically maintained at 4727047360 yuan / ton near the narrow range of concussion finishing. In the afternoon, the market fell slightly to 47180 yuan / ton, followed by a small rebound and maintained near 47200 yuan / ton shock finishing, after a small consolidation continued to decline to the lowest level of 47130 yuan / ton, the end of the day rose slightly and closed at 47240 yuan / ton, up 350 yuan / ton, up 0.75 per cent. Shanghai Copper's main contract today reduced its position by 8924 hands to 231000, mainly by short positions, while trading volume increased by 17000 hands to 136000. Positions in the Shanghai Copper Index fell 9528 hands to 567000 today, while trading volume rose 27000 hands to 275000. At present, the 12th round of trade talks between China and the United States is under way, the market is optimistic about the negotiations, copper prices are basically volatile today, and the Federal Reserve will announce a decision to cut interest rates this week, which will guide copper prices. Today, Shanghai copper closing Yang, is the first time after the six consecutive Yin decline closed in Dayangzhu, KDJ indicators open to expand, the technical side of the good price trend. In the evening, wait for the guidance of the outside market to test whether Shanghai copper can hit 47400 yuan / ton.

Zinc: the main 1909 contract of Shanghai zinc opened at 19550 yuan / ton at the beginning of the day, and the bulls neatly entered the market at the beginning of the day to boost Shanghai zinc up to 19785 yuan / ton. However, under the suppression of the 60-day moving average, the pressure on Shanghai zinc fell back to 19680 yuan / ton, and then quickly returned to the first line of 19700 yuan / ton. It fell steadily in the afternoon, giving up some of the gains in the day, closing up to 19690 yuan / ton, up 315 yuan / ton from the previous transaction, up 1.63%, and the trading volume increased 36428 hands to 373000 hands. Reduce your position by 8672 to 254000. In terms of macro sentiment, the Fed's interest rate cut is expected to be superimposed by the resumption of Sino-US trade negotiations, giving Shanghai zinc a certain amount of action energy. From a basic point of view, the northern refinery overhauled the superimposed import window has not been opened, the domestic warehouse has not arrived at the warehouse, the inventory has not yet accumulated, and the short confidence in the day has weakened and closed out. At night, Shanghai zinc is still strong enough to run near the 40-day moving average.

Nickel: Shanghai nickel 1910 opened at 112490 yuan / ton today. At the beginning of the day, the center of gravity fluctuated around the first line of 112250 yuan / ton. Near noon, long positions increased, Shanghai nickel rose slightly, and the pressure of 113500 yuan / ton fluctuated within a narrow range. In the afternoon, the bulls left the market, Shanghai nickel fell back to 112200 yuan / ton line, back to all increases before noon, the center of gravity around 112400 yuan / ton line of small shock, closed at 112570 yuan / ton, compared with the previous trading day settlement price rose 2270 yuan / ton, up 2.06%, trading volume decreased 164000 hands to 901000 hands. The number of positions increased by 19100 to 361000, and the inflow of funds into the Shanghai Ni 1910 contract reached 257 million yuan today. Throughout the day, the Shanghai Ni 1910 contract closed at the Xiaoyang line, breaking through the 5-day moving average and reaching the 10-day moving average. In the evening, we will pay attention to whether Shanghai Ni can stand above the 5-day moving average and hold the 112000 yuan / ton barrier.

< updating >

 

 

Click to sign up for this summit

"Click to sign up for this summit

Scan QR code and apply to join SMM metal exchange group, please indicate company + name + main business

 

SMM reviews
exclusive reports
headlines recommended

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn