[SMM midday review] Shanghai aluminum fell by more than 3 per cent. Non-ferrous metals generally fell back. The black system also slashed the rise in precious metals.

SMM2 month 3: this morning non-ferrous metals fell across the board, it is worth noting that Shanghai aluminum toughness better decline the smallest. From a macro point of view, Lian Weiliang, deputy director of the National Development and Reform Commission, said that the impact of the epidemic on the economy is phased and temporary, and will not change the fundamentals of the long-term improvement of China's economy. We have confidence in our ability to minimize the impact of the epidemic on the economy.

Shanghai copper fell after the ups and downs, China Minmetals once again suspended the transport of Las Bambas copper mine. Members of the local community protested that the land was continuously polluted, resulting in the blockade of roads. However, according to local media reports, the move will help protect trucks entering and leaving the mine and is expected to have little impact on production. (OEFA) and community members of the Peruvian Environmental Assessment and Control Agency conducted a three-month environmental assessment and recently concluded that trucks at the, Las Bambas mine violated the relevant regulations and covered a number of areas. Las Bambas is the ninth largest copper mine in the world, with an annual metal output of about 400000 tons, accounting for 2 per cent of global production. On the nickel front, nickel miner Panoramic Resources recently reported that nickel production fell 22 per cent and copper production fell 19 per cent in the fourth quarter compared with the third quarter. Nickel concentrate production in (Savannah) concentrate in Savannah, Western Australia fell from 1342 tons to 1042 tons in the December quarter, while copper content fell from 855 tons to 695tons. "Panoramic resources: a 22 per cent decline in nickel production in the fourth quarter is a decline in ore grade.

Black iron ore fell by the limit, and steel was also close to the limit. The steel industry PMI released today showed that it was 47.1% in January, up 4 percentage points from the previous month. The sub-index shows that the market demand is still in a slowing trend, the production of steel mills is relatively stable, the inventory of the industrial chain is increasing, the fluctuation of market price is small, and the expectation of enterprises to the future is good. It is worth noting that the current spread of the new coronavirus epidemic will affect the production and demand of the iron and steel industry in the short term. "Market demand continues to slow steel mill production is relatively stable: the steel industry PMI rose 4 percentage points from 47.1% in January to 47.1% month-on-month.

Crude oil fell 8.01% in the previous period. During the Spring Festival, crude oil fell for many days, and crude oil fell by the limit on the first day of trading after the festival. The market has fallen in recent days or now. (JTC), a joint technical committee of the Organization of Petroleum Exporting countries (OPEC) and non-OPEC, is scheduled to meet in Vienna from February 4 to 5 to assess the impact of the new coronavirus outbreak on oil demand, OPEC+ sources said on Monday. The Joint Technical Committee is likely to make recommendations on whether to further extend or implement deeper production cuts after the current oil production reduction agreement expires in March, sources said.

Closing at noon:

As of 11:30, HKEx had added US dollar-denominated small metal contracts:

Today's stock

Copper: today Guangdong electrolytic copper spot to the current month contract up 10 ~ 40%, wet copper discount 50. The average price of electrolytic copper fell 3195 yuan / ton to 44845 yuan / ton, and the average price of wet copper fell 3200 yuan / ton to 44770 yuan / ton. In the spot market, affected by the epidemic during the Spring Festival holiday, copper in Shanghai fell more than 7 percent after the holiday, but due to the surge in social inventory of electrolytic copper in Guangdong by 22000 tons to 65900 tons, and most traders and downstream factories did not go to work, market participants were very rare, and the overall spot rising water did not change much, only rising to about a small extent. Market trading is expected to remain weak this week and may not improve until next week.

Aluminum: on the first trading day after the festival, affected by the epidemic, aluminum opened sharply lower, and the main force of Shanghai aluminum fell 500 yuan / ton compared with the final closing price before the festival. The government's delay in resuming work affected the market. The spot performance of Guangdong aluminum ingots was flat, with only sporadic inquiries from traders, but there were few actual transactions. The inventory of aluminum ingots in public warehouses increased by more than 30,000 tons, down from more than 50,000 tons last year, and the epidemic delayed the progress of transportation.

The reference price difference between Guangdong and Shanghai is maintained at about 80 yuan / ton, which is little changed compared with that before the festival. Today, the spot of aluminum ingots in Guangdong has turned to negative base difference, although some traders have reworked but their transactions have been affected, warehousing and logistics are also limited, the downstream has not yet resumed work, and it will take some time for market trading to recover.

Lead: today is the first trading day after the Spring Festival, affected by the epidemic, the lead industry chain upstream and downstream enterprises are mostly delayed resumption time, especially downstream lead battery enterprises, production is generally delayed to February 10, some areas are even delayed to February 17, at the same time, a number of provinces and cities tentatively scheduled inter-provincial, intercity transport, the market is in a state of price and no market.

Updating.

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