SMM news: in late September, affected by frequent Chilean strikes, copper prices out of a wave of rebound, internal and external copper both hit a one-and-a-half-month high. Then the gold nine silver ten quietly died, the copper market further upward power is insufficient, but the macroscopic surface warm wind blows frequently, the short-term copper price toughness is difficult to say pessimistic.
The people's Bank of China unexpectedly cut interest rates, trade frictions continued to ease
Since the beginning of this year, a number of central banks around the world have cut interest rates one after another, but the people's Bank of China has maintained a strong attitude of monetary policy dominated by me. However, China's GDP growth fell to 6 in the third quarter, the slowest since records began in 1992, while official manufacturing PMI fell short of expectations in October, and downward pressure on the domestic economy continued unabated. This week, the people's Bank of China unexpectedly cut MLF interest rates by five basis points, helping to guide the downside of financing costs for real companies and injecting a shot in the arm into the market in time.
After the 13th round of high-level economic and trade consultations between China and the United States made substantial progress, the trade situation between China and the United States has been constantly warming. The leaders of the two sides made phone calls on the 25th of last month and the beginning of this month, and the consultations went smoothly. The two sides held serious and constructive discussions on properly resolving their core concerns, reached consensus in principle, and also discussed arrangements for further consultations. After the close of trading yesterday, Gao, a spokesman for the Ministry of Commerce, revealed that the two sides agreed to abolish the additional tariffs in stages as the agreement progresses. The recent progress of the negotiations has exceeded market expectations, and despite the repetition of the trade war, the financial markets are undoubtedly excited by the heavy news that "the tariffs imposed by the two sides have been removed by agreement." Overnight copper surged nearly 2 per cent to a more than three-month high, while copper in Shanghai rose by a relatively limited margin, with futures holding steady above the 47000 line recently.
The impact of the strike has not yet been eliminated, and the domestic supply and demand side has changed.
Since last month, strikes over riots, inconsistencies and accidents in Chile, including large copper miners such as Escondida and Codelco, have raised concerns about supply-side tightening. On the Chilean side, although the riots have not unduly affected the normal production of mining enterprises, the instability of transport networks in some areas and sporadic accidents have left uncertainties in the supply of Chilean copper mines, supporting futures prices. BHP Billiton said last week that its Escondida copper mine, the world's largest affected by the strike, was operating at a "low load" and that Chilean copper miners had cut their production forecasts by 2019 yesterday.
In mid-October, the CSPT team priced the TC floor price of copper concentrate at $66 a tonne for the fourth quarter, up 20 per cent from the previous quarter. As of November 1, domestic spot copper concentrate TC had risen to $59, up 11 per cent from its previous low of $53. The shortage of copper concentrate has been alleviated, and the profits of domestic smelters have rebounded, boosting their operating rate. In terms of inventory, compared with the falling copper inventory, copper inventory in Shanghai has been volatile since October, which means that the peak demand season for gold, silver and silver is over.
Recently, there has been a lot of good macro news, the people's Bank of China has cut interest rates to hedge against downside risks in the economy, and Sino-US economic and trade relations have warmed beyond expectations, providing a hotbed for the strong operation of copper futures. There has been a slight change in the supply and demand side of the copper market, with the support of the strike still remaining, but the continued rebound in domestic processing fees and rebound inventories have made Shanghai copper underperform copper. In addition, the two batches of scrap copper import approval documents in the fourth quarter have been greatly reduced, and the subsequent changes in domestic fine waste price spreads are also worthy of investors' attention.
A grand event for thousands of people in China's non-ferrous metal industry
Shanghai colored net (SMM) annual meeting is the annual event of the metal industry, with an annual participation scale of thousands of people, domestic and foreign metal industry people gathered together to review and summarize the experience and harvest of the year, and lay the groundwork for the production, operation and operation of the coming year.
This year's "2019 China Nonferrous Metals Industry Annual meeting and 2020 (SMM) Metal Price Forecast Conference" was jointly created by SMM and China Renewable Resources Industry Technology Innovation Strategic Alliance and Shanghai Nonferrous Metals Industry Association. At the same time, the first "China Renewable Metals Industry chain Development Summit Forum" was held, and SMM metal price forecasting conference and waste battery recycling exchange were set up for you to enjoy. From the development of non-ferrous metal market to the recycling of renewable resources, from the detailed explanation of policies and systems to the research and development of industrial chain technology.
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