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[SMM Daily Review] Shanghai Nickel closed up 2.98%. The black system continued to pick up.
Oct 23,2019 17:00CST
translation
Source:SMM
Today, the non-ferrous metals market generally closed down, by the end of the day, Shanghai copper fell 0.45%, Shanghai aluminum rose 0.07%, Shanghai zinc fell 0.66%, Shanghai lead fell 0.92%, Shanghai nickel rose 2.98%, Shanghai tin rose 0.52%. Black, iron ore up 1.22%, thread up 0.24%, hot coil up 0.39%, stainless steel up 0.81%, coke up 1.58%, coking coal up 1.21%. Crude oil rose 0.27% in the previous period.
The content below was translated by Tencent automatically for reference.

SMM10 23: the non-ferrous metals market rose and fell each other today, as of the end of the day, Shanghai copper fell 0.45%, Shanghai aluminum rose 0.07%, Shanghai zinc fell 0.66%, Shanghai lead fell 0.92%, Shanghai nickel rose 2.98%, Shanghai tin rose 0.52%.

On the nickel side, (Norilsk Nickel), Russia's Norilsk nickel company, said on Tuesday that there had been an accident at its Taimyr mine in western Leia. According to SMM, the cause of the nickel mine accident is related to the gas produced underground, the detailed reasons are under investigation within the company, the accident will not have an impact on mine production. Subsequent information SMM will continue to track. "[SMM survey] the mine output of the Nino Nickel mine accident is not expected to be affected.

On the copper side, there has been a lot of unrest in the international copper mine recently, with the latest news that Chilean mining company Antofagasta (Antofagasta Plc) reported a 4.6 per cent increase in quarterly copper production, mainly boosted by high-quality ore at its Centinela mine in northern Chile, but the company warned that the recent unrest in Chile could affect production. The company said the recent domestic unrest was expected to affect production of about 5000 tonnes as it could affect the delivery of supplies and the delivery of labour to it. The company operates four mines and the flagship mine Los Pelambres is located 240km northeast of San Diego.

On the aluminium side, aluminum producer Hydro (Norsk Hydro) of Norway reported a smaller-than-expected drop in third-quarter earnings on Wednesday as the company closed its Brazilian business to expand sharply and lower input costs partly offset the fall in metal prices. For China, it says demand for primary aluminium is expected to grow by 1%-2% in 2019, down from 4.1% in 2018 and well below the 8.0% increase in 2017.

Black, iron ore up 1.22%, thread up 0.24%, hot coil up 0.39%, stainless steel up 0.81%, coke up 1.58%, coking coal up 1.21%. On the rebar side, it rose on the second trading day as more cities in the north issued pollution warnings to limit production by steel mills. This week, seven cities in Shandong Province and some in Shanxi Province issued yellow or orange haze warnings that are expected to cause severe pollution. On the iron and steel side, the Ministry of Industry and Information Technology said in the afternoon that in the first three quarters of this year, the overall operation of the iron and steel industry maintained a relatively stable development trend. However, there are some problems, such as the rapid growth of production and the sharp decline in profits, which need to be paid great attention to. Steel production increased year on year. In the first three quarters, the national output of pig iron, crude steel and steel was 612 million tons, 748 million tons and 909 million tons respectively, up 6.3 per cent, 8.4 per cent and 10.6 per cent respectively over the same period last year. "Ministry of Industry and Information Technology: rapid production growth in the iron and steel industry and a sharp decline in profits need to be paid great attention to.

Crude oil rose 0.27% in the previous period. With the increase in U.S. crude oil production and exports, the United States has sold more crude oil to more destinations around the world than the number of countries that import crude oil, the U.S. Energy Information Agency ((EIA)) said on Tuesday. Oil prices rose on Tuesday on news that the OPEC+ might discuss extending or stepping up production cuts at its December meeting. However, the increase in US crude oil production and exports will weaken the effect of OPEC+ production reduction.

As of 16:53, the new US dollar denominated small metals contracts on the HKEx are as follows:

 

Brief Review of SMM analyst on Oct. 23

Copper: today, the Shanghai copper main contract 1912 opened at 47010 yuan / ton in the morning. After the opening, the center of gravity maintained 47060 yuan / ton shock finishing, and then the bulls reduced their positions one after another, and the copper price stepped down until the end of noon. In the afternoon, the center of gravity continued to move up to 47020 yuan / ton, but the market confidence was insufficient, the bulls left one after another, and closed down at 46930 yuan / ton, down 210 yuan / ton, down 0.45%. The main contract position of Shanghai Copper decreased by 1808 hands to 225000 hands today, while the trading volume increased by 5454 hands to 17000 hands. Today, the position continued to move backward, Shanghai Copper 2001 and 2002 contracts increased by about 7200 hands to 348000 hands. The Shanghai copper index reduced its position by 4128 hands to 540000, while trading volume increased by 6668 to 36000. The pullback from today's high was mainly due to delays in the current Brexit plan and increased pessimism in the market, as some investors withdrew from the market, coupled with the already weak global macroeconomic situation. At night, waiting for the outer plate to guide, test whether Shanghai copper can hold the 46900 yuan / ton barrier.

Nickel: Shanghai Nickel 1912 contract opened at 130570 yuan / ton today, during the day, Shanghai nickel as a whole was 129000 yuan / ton first-line support, above the pressure of 130000 yuan / ton, narrow range concussion operation, and finally closed at 129970 yuan / ton, up 3760 yuan / ton, up 2.98% from the settlement price of the previous trading day, trading volume increased by 442000 hands to 1.178 million hands, position decreased by 32000 hands to 344000 hands. Shanghai Nickel 1912 contract daily capital outflow of 253 million yuan, closed at the Zhongyang column, break through the 5-day moving average, explore the 10-day moving average on the shadow line, and pay attention to the concussion of Shanghai Nickel 130000 yuan / ton at night.

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