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[SMM midday review] the metal market generally fell as the sharp drop in oil prices dragged down crude oil by 2.41 per cent in the previous period.
Apr 21,2020 11:57CST
The content below was translated by Tencent automatically for reference.

SMM4 21: due to insufficient storage capacity led to the decline of US oil to a negative value, commodity markets generally under pressure lower. Shanghai copper ended its rally down 2.03 per cent, with China's refined copper (electrolytic copper) production at 771000 tonnes in March, the lowest monthly output level since May 2019 and down 2.5 per cent from a year earlier, according to the National Bureau of Statistics. BHP said it expected a delay in the expansion of its Spence copper project in Chile, BHP's second largest copper mine in Chile, the first largest copper mine in Chile and the Escondida copper mine, due to a reduction in the number of workers as a result of the outbreak. Shanghai nickel also fell near the end of midday, SMM predicted that the macro marginal improvement, nickel price fundamentals can be short-term situation, and overseas producers on production expectations have been reduced to further stimulate market sentiment, although once broke the 60-day moving average but the high level of stability is slightly inadequate, but nickel prices are expected to be strong volatility this week.

Black fell across the board, mainly due to the collapse of US oil as a drag on commodities. Thread output continues to increase, Tangshan area to implement production restriction policy, while thread inventory remains a significant decline, de-chemical condition is good. Thread apparent consumption continued to pick up and reached a new high, hot coil is relatively poor, but the recent increase in rainfall in the country concerned about the marginal changes in building materials demand to maintain the peak season demand but wait and see the mood increase. BHP Billiton, a global mining company, said iron ore production rose 6.3 per cent in the third quarter, just below analysts' expectations. Although the outbreak has plunged the global economy into chaos, BHP Billiton has not changed its production targets for the time being.

Crude oil fell 2.41% in the previous period. After falling 21 per cent to a low of $14.47 yesterday morning after hitting its lowest level since March 1999, May WTI crude oil futures tumbled about 300 per cent to-$37.63 a barrel on Monday, falling negative for the first time in history and falling to an intraday low of-$40.32 a barrel, due to the emergency of storage capacity, which fell 21 per cent to $14.47 yesterday morning, hitting its lowest level since March 1999. the price of crude oil futures for May fell about 300 per cent to-$37.63 a barrel. Trump's public remarks boosted oil prices, saying he would announce that he would take advantage of the current collapse in international oil prices to buy 75 million barrels of crude oil.

Close at noon

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

Today's stock

Copper: today, Guangdong electrolytic copper spot contract rose 210 ~ 210, the average price rose 15%; wet copper rose 160 ~ 170, the average price rose 10%. The average price of electrolytic copper fell 430 yuan / ton to 42170 yuan / ton, and the average price of wet copper fell 435 yuan / ton to 42125 yuan / ton. In the spot market, although inventories have increased, the market shortage has not changed significantly, especially flat copper is still difficult to obtain, a small amount of 200 yuan / ton of flat copper flowed out in early trading but was soon swept away, and then the price of flat copper rose to 220 yuan / ton. On the contrary, a large number of warehouse receipts continued to flow into the market today, and the supply of good copper exceeded demand, and the price fell all the way down from 220 yuan / ton in early trading to 200 yuan / ton. Wet copper supplies continue to be tight compared with yesterday's small increase of 10 yuan / ton to 170 yuan / ton. Overall, today's Guangdong electric copper market trading is OK, to low-price warehouse receipts good copper transaction, Pingshui copper price high goods less trading in general.

Today, Shanghai electrolytic copper spot contract rose 130 yuan / ton to 160 yuan / ton, Pingshui copper transaction price 41850 yuan / ton ~ 42190 yuan / ton, Shengshui copper transaction price 41860 yuan / ton ~ 42200 yuan / ton. Overnight crude oil prices fell sharply, US crude oil contract negative for the first time, triggering pessimistic expectations of demand, the overall trend of commodities is still weak, copper prices plummeted to 42000 yuan / ton below as low as 41700 yuan / ton line. The price of copper fell to attract part of the downstream buying, the market morning market continued yesterday's quotation rose 130 ~ 150 yuan / ton, the market inquiry enthusiasm is high, the low price supply transaction is positive, the Pingshui copper rises the water 140 yuan / ton below can press the price 5-10 yuan / ton to have the transaction, the good copper quotes in the rising water 150 ~ 160 yuan / ton, the transaction is inferior to the Pingshui copper. The wet copper is stable in the range of 100 ~ 110 yuan / ton. With the decline of the disk, holders continue to offer, water quotation is stable and there is little room for further decline, traders due to the lack of profit space and stop, the market in the context of precipitous uncertainty in the external environment, the overall performance is cautious.

Zinc: Guangdong zinc mainstream transaction at 15720-15960 yuan / ton, the quotation is concentrated in Shanghai zinc 2006 contract up 20-40 yuan / ton, Guangdong market compared with Shanghai stock market discount 130 yuan / ton is flat compared with the previous trading day. In the first trading period, the price fluctuated downward, the holder offered the goods, the quotation was mostly flat or floating 10 yuan, the futures quotation was due to the expansion of the price difference between the futures month and the next month, the market quotation turned to the 06 contract, Kirin, Mengzi, Huize, Tiefeng quoted on the Shanghai zinc June contract rose 20-30 / ton. The second trading period, the downstream bargain into the market replenishment, leading to the transaction, the holder is still high prices for shipment, traders inquiry is more active. Kirin, Mengzi, Huize and Tiefeng quoted 30-40 yuan per ton for the June contract. Qilin, Mengzi, Huize, Tiefeng mainstream transaction in 15720-15960 yuan / ton.

Tin: in the spot market, the mainstream transaction price this morning is 130000132000 yuan / ton. Shanghai tin market fell in the morning, some downstream enterprises just need to purchase, traders also received some goods. Shanghai tin spot market overall transaction atmosphere is general. Shanghai tin 2006 contract set Yunxi rising water near 5500 yuan / ton, ordinary cloud word rising water 4500 yuan / ton, small brand rising water 4000 yuan / ton.


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