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[SMM midday review] weak concussion of non-ferrous metals and collective warming of black system
Oct 14,2019 12:01CST
The content below was translated by Tencent automatically for reference.

SMM, October 14, this morning non-ferrous metal green manure red and thin, by noon closing, Shanghai tin rose 1.01%, Shanghai copper rose 0.26%, other varieties have varying degrees of decline.

On the copper side, protests across Ecuador to end government fuel subsidies continued and affected by the protests, the Ecuadorian Mirador copper mine began to restrict production. The Mirador project began operation in July and is jointly invested by Tongling Nonferrous Metals Group Co., Ltd. and China Railway Construction Co., Ltd. The company says copper operations will resume after the situation stabilizes. The copper ore produces 62000 metal tons of copper per year. At present, the copper mine has proven copper reserves of 660 million tons and contains gold and silver deposits. In the initial stage of production, the daily output of copper ore will reach 400 tons. The mine was previously considered by the industry to be one of the largest undeveloped copper mines in the world.

Another source said that the union of Chilean copper mines owned by Canadian miner (Teck Resources Ltd) Resources on Sunday will go on strike on Oct. 14. Employers and employees were unable to reach an agreement at the end of the five-day mediation period (11 October). The strike by the Chilean Teck Carmen de Andacollo Operations (CdA) Project Union will lead to a moratorium on production at the mine. The strike mine, located in central Chile, produced about 15000 metal tons in the quarter ended June 30. Teck has a 90 per cent interest.

With regard to aluminum, Luliang recently said that it would make every effort to promote the construction of Luliang aluminum and magnesium new material industrial park. Chinalco 430000 tons alloy aluminum project has been put into production one after another, the Luliang local power grid has been put into operation in an all-round way, the power grid support load has been raised to 400000 kilowatts, the reform of mixed ownership of local power grid has been accelerated, and the preliminary work of the second phase of the supporting transmission line project has been basically completed, and a number of intensive processing projects, such as aluminum plates, aluminum materials, and aluminum bars, have been signed. Solid progress has been made in the integrated development of coal, electricity, aluminum and magnesium. In the first eight months, the added value of the aluminum industry accounted for 8.2 percent of the city's industrial added value. "Luliang Municipal Government Research to promote the Construction of Luliang Aluminum and magnesium New material Industrial Park

Recently, some traders reported that a large southwestern factory in East China market produced A356 spot shortage, zero purchase basically can not find the goods. The rumor in the market was that the factory overhauled two lines in September, affecting production of 6000 tons. According to SMM, the rumor was wrong. "[SMM analysis] what are the reasons for traders to reduce the production of A356 in large factories?

On the black side, black rose collectively this morning. Steel, double coke have a rebound, iron ore is strong shock, looking forward to the afternoon performance. Sinosteel Futures said that the strengthening of control in Tangshan in October had little impact on demand reduction, production restrictions were relaxed in various regions after the festival, blast furnace operation rate rebounded rapidly and port opening volume rose to a high level, and iron ore demand was still good in the short term. However, the gradual recovery of foreign mine shipments and arrivals, as well as the decline in the number of ports during the holidays, led to higher-than-expected overall inventory increments. Last week, imported iron ore stocks in 45 ports across the country were 126.696 million tons, an increase of 6.3589 million tons over the period before National Day. The rising trend of medium-term concussion of port inventories has been verified again, and the profit compression of superimposed steel mills has been serious and the phased replenishment demand has weakened. Iron ore is expected to break through the recent high of 690.0 yuan / ton in the short term.

On the crude oil side, crude oil had been fluctuating at a high level in the early afternoon, rising more than 2 per cent by the end of the afternoon. In a speech broadcast on Sunday, Russian President Vladimir Putin said global oil stocks needed to be cut to "reasonable levels" and that Russia would work with Saudi Arabia and other partners to "reduce instability in the oil market to zero". Putin made the remarks in an interview with AlArabiyaTV and other media before his visit to Saudi Arabia. On September 14th the Saudi oil plant was attacked, halving production in the world's largest oil exporter. It said a series of attacks on Gulf tankers in recent months and limited attacks on Saudi oil assets would strengthen cooperation among OPEC+ oil producers.

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

Today's stock

Lead: Guangdong market South China lead 16900 yuan / ton, the average price of SMM1# lead rose 50 yuan / ton quotation; lead price high rapidly downward, the overall market procurement is still relatively low, the market transaction is dull. Henan Yuguang, Wanyang and other smelters mainly to long single transaction; Jinli 16825 yuan / ton, the average price of SMM1# lead discount 25 yuan / ton quotation. Lead prices fell back, mainly downstream wait-and-see, market transactions continued last week light trend. Other areas such as: Hunan Shuikoushan 16800-16850 yuan / ton, the average price of SMM1# lead discount 50 to flat water quotation (traders); Hunan Jingui 16700 yuan / ton, the average price of SMM1# lead discount 150 yuan / ton; Jiangxi copper industry 16870 yuan / ton, the average price of SMM1# lead rose 20 yuan / ton; Yunnan small factory 16500-16550 yuan / ton, the average price of SMM1# lead discount 300350 yuan / ton. Lead prices fell back, downstream worry about prices continue to probe, procurement is still more cautious, the overall transaction is light.

Zinc: the mainstream transaction of zinc in Shanghai was 19080-19090 yuan / ton, and that of Shuangyan was 1908019100 yuan / ton, that of zinc was 120-130 yuan / ton in November, that of Shuangyan was 130 yuan / ton in November, and that of Shuangyan was 19010-19020 yuan / ton. Shanghai Zinc 1911 morning high shock fell back, the first trading session in the morning closed at 18945 yuan / ton. In the first trading session, the holder reported a 120-130 yuan / ton rise in the 1911 contract, with few transactions in the market, and the trading mood was low; in the second trading session, the zinc price stabilized, and the holder kept the rising water quotation up 130 yuan / ton on the 1911 contract; due to the annual meeting of lead and zinc today, trading in the trader market was relatively light, and some downstream enterprises began to purchase on demand after the shock of zinc prices fell.

The mainstream transaction of Guangdong zinc was 18900-18940 yuan / ton, and the Shanghai zinc 1911 contract was reported near 40-50 yuan / ton, while the discount of Guangdong stock market compared with Shanghai stock market was enlarged from 150 yuan / ton to 180 yuan / ton on Friday. Refinery normal shipment, the market supply circulation is more abundant. The morning quotation of the holder is concentrated in the vicinity of the average price, part of which is quoted near the average price of-10 yuan / ton, and the holder of the contract quotation is reported near the discount of 40 yuan / ton to the 11 contract; entering the second trading session, the market transaction price is concentrated in the discount of 40-50 yuan / ton to the 11 contract, the willingness to buy downstream becomes worse again, and the transaction atmosphere between traders is also relatively light. Overall, the transaction in Guangdong today is slightly light, and the transaction situation is basically flat compared with last Friday. Yi Qilin, Cishan, Tiefeng, Mengzi mainstream transactions in 18900-18940 yuan / ton near.

The mainstream transaction of zinc ingots in Tianjin market was 1904020640 yuan / ton, and that of ordinary brands was 1904019140 / ton. The contract for 1911 rose by 100-170 yuan / ton, and the rising water in Tianjin market was stable at 40 yuan / ton compared with Shanghai stock market. Refinery shipments are normal today. In the market, the supply circulation continues to be slightly tense, the market for the circulation of Iranian zinc demand is less, its shipment is slightly unsmooth. The quotation for the supply of high-priced brands is concentrated around 150-170 yuan / ton for 11 liters of water, while for ordinary brands, it is about 100120 yuan / ton for 11 liters of water. The disk is arranged in a narrow range of 18960 yuan / ton, the rising water is basically flat on Friday, the price rises slightly, the downstream is more bearish, the willingness to buy is on the low side, and only maintains the rigid demand to take the goods. Overall, today's deal continues last Friday's light trend. Zi Zijin, Hongye, Bailing, Chi Hong, Xikuang, etc., were traded in the vicinity of 19040-19140 yuan / ton, while Zi Zijin, Chi Hong and Hongye were traded in 18990-19090 yuan / ton.

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