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[SMM midday review] Nonferrous metals rose and fell, Tangshan issued a new round of steel production restrictions last night.
Oct 10,2019 11:50CST
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Source:SMM
The content below was translated by Tencent automatically for reference.

SMM on October 10, this morning non-ferrous metals rose and fell interchangeably, of which Shanghai zinc rose nearly 0.6%, Shanghai nickel rose nearly 0.4%. The black system as a whole continues to descend. Macro news, nearly two days of high-level trade consultations between China and the United States began, important information may have an impact on the market.

On the copper side, the latest news says the Zambian KCM smelter closed two days early for annual maintenance because of the leak. Milingo Lungu, a provisional liquidator, said the (KCM) smelter at the Konkola copper mine in Zambia closed on Wednesday for annual maintenance, two days ahead of schedule because of the leak. Lungu said the smelter was scheduled to begin 35 days of annual maintenance on Friday, but will now close for 37 days until production resumes on November 15. On the other hand, Minmetals issued a notice saying that several sections of the national road between Sayhua and Velille in the Chumbivilicas province of Cusco, Peru, have been blocked, hindering the passage of roads in and out of the Las Bambas mine. Although the production of copper concentrate has not been affected at present, if the logistics and transportation into the mine can not be resumed in the next few days, the mining operation will be gradually affected. Some shipments to customers were delayed because the roads were blocked and concentrate could not be transported from the mine to the port. "the logistics of Minmetals: Las Bambas mine has not been affected by the hindrance of copper concentrate production.

In terms of aluminum, the International Aluminum Association recently released on its website the Evaluation report on the amount of Aluminum used in China's Automobile Industry (2016-2030), which it commissioned by CM Consulting Company. The report introduces the results of the comprehensive evaluation of aluminum used in China's automotive industry by CM Consulting, including passenger vehicles, commercial vehicles (passenger cars and trucks), special vehicles, two-wheeled vehicles and tricycles. The report argues that between now and 2030, China's auto industry is likely to undergo a huge shift from fuel-fueled vehicles to new energy vehicles. Aluminum, the preferred material for Chinese carmakers to reduce vehicle weight, has made good use of the shift. While the outlook for the number of fuel vehicles remains unchanged, weight loss measures are likely to boost consumption by increasing the unit use of aluminium in vehicle manufacturing. "the amount of aluminum used in cars in China will increase from 3.8 million tons in 2018 to 9.1 million tons in 2030.

With regard to the black department, the relevant departments in Tangshan city last night formulated this "enhanced air pollution control plan for the prevention and control of air pollution in October" in accordance with the relevant requirements of "atmospheric environmental quality control" in the "Tangshan heavy pollution weather emergency plan". The control period is from 00: 00 on 10 October to 24:00 on 31 October 2019. Yunnan Desheng Steel Plant began to overhaul the blast furnace rolling production line for 7 days on October 9, which is expected to affect the output of about 30,000 tons. On the iron ore front, the latest report says ANM, Brazil's mining regulator, has suspended operations at 54 tailings dams in the country, saying the stability of the mines has not yet been confirmed and could be dangerous. This may have some impact on Brazil's raw ore supply. Downstream of steel, a notice from the Guangzhou Municipal Bureau of Transportation ignited the local car market and aroused strong concern in the auto industry. According to the announcement, Guangzhou will configure 10000 incremental indicators for ordinary cars in the way of rocking, including 1000 unit indicators and 9000 individual indicators.

On the crude oil side, crude oil continued to rise in the last period of the morning. Turkish armed forces launched a military operation against PKK and other forces in northern Syria yesterday, and Syrian media said Hasek province in northeastern Syria had been shelled by Turkish forces. Although neither country is an important oil producer, there are concerns that geopolitical tensions in the region will affect the safety of oil production and transport in oil-producing countries such as Iraq. On the supply and demand level, EIA inventory data are mixed. On the one hand, the continuous four-week growth of US crude oil stocks has depressed the market atmosphere; on the other hand, the demand for gasoline and distillates in the United States has increased, and refined oil stocks have decreased to a certain extent, easing the pressure to a certain extent. To sum up, crude oil has been supported in the short term under the influence of several geopolitical events, but the upper pressure is still high, focusing on the recent trade negotiations.

The new LME Metal Mini Futures quotation launched by the Hong Kong Stock Exchange shows:

Today's stock

Lead: Guangdong market South China lead 16950 yuan / ton, the average price of SMM1# lead 50 yuan / ton quotation; Jinsha 16970 yuan / ton, 1911 contract water 20 yuan / ton quotation; lead price low shock operation, but the overall market procurement is relatively low, the market transaction is dull. Henan Yuguang, Wanyang and other smelters are mainly long single transactions; Jinli 16875-16900 yuan / ton, the average price of SMM1# lead discount 25 yuan / ton to Pingshui quotation. Henan small factory 16850 yuan / ton, the average price of SMM1# lead discount 50 yuan / ton quotation. Lead price weak shock, downstream is still mainly to digest inventory, the market transaction is light. Other areas such as: Hunan Shuikoushan 16850 yuan / ton, the average price of SMM1# lead discount 50 yuan / ton (traders); Hunan Jingui 16750 yuan / ton, the average price of SMM1# lead discount 150 yuan / ton; Hechi south 16780 yuan / ton, the average price of SMM1# lead discount 120 yuan / ton; Jiangxi copper industry 16930 yuan / ton, the average price of SMM1# lead rose 30 yuan / ton; the revitalization of Yunnan 16600 yuan / ton, the average discount price of SMM1# lead 300 yuan / ton. Lead price shock operation, the holder active shipment, but the downstream basically wait and see, the market seldom has the transaction, the overall transaction is bleak.

Zinc: the mainstream transaction of zinc ingots in Tianjin market was 18960-20530 yuan / ton, that of ordinary brands was 18960-19050 / ton, and that of the 1911 contract was 150-220 yuan / ton. The rising water in Tianjin market narrowed from 150 yuan / ton on the last trading day before the festival to 70 yuan / ton on the last trading day before the festival. Refinery shipments are normal today. In the market, the supply of goods has increased, but overall it is still tight. The quotation of the source of high-priced brand is about 150-220 yuan / ton to 11, and that of ordinary brand is about 150 yuan / ton to 11. The disk pulled up, the holders have downgraded the rising water, from the beginning of trading on the 11 contract rose 220 yuan / ton to 150-190 yuan / ton around. On the third trading day after the festival, the market rose so that the mood of inquiry and wait-and-see became stronger and stronger, and there was little interest in buying downstream. On the whole, the transaction today is once again worse than yesterday. Zi Zijin, Hongye, Bailing, Chi Hong, Xikuang, etc., were traded in 18960-19050 yuan / ton, and Zi Zijin, Chi Hong and Hongye were traded in 18910-19000 yuan / ton.

Tin: in the spot market, the mainstream transaction price this morning is 136000-137500 yuan / ton, and there is a low price supply of 135500 yuan / ton in the market. When the Shanghai tin market fell this morning, some businesses bargained for purchases, followed by a gradual weakening of the upward buying of tin prices. The overall transaction atmosphere in the Shanghai-tin spot market today is generally weak. Shanghai tin 2001 contract set Yunxi water 800-1000 yuan / ton, ordinary cloud word water 200-400 yuan / ton, small brand discount 100-200 yuan / ton.

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