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[SMM midday review] Industry policies boost sentiment across the board non-ferrous metals rose nearly 5 per cent in Shanghai and tin to a black V-shaped reversal
Apr 27,2020 11:58CST
The content below was translated by Tencent automatically for reference.

SMM4 27: this morning the non-ferrous market generally opened higher, Shanghai tin rose 4.98%, Shanghai copper Shanghai zinc Shanghai nickel rose more than 2%. Earlier, the Yunnan Provincial people's Government issued a circular on "several measures to support the development of the real economy", the first of which is to support key enterprises to carry out commercial collection and storage of non-ferrous metal products. The total amount of collection and storage is about 800000 tons, and the collection time is one year. Although the actual impact of storage measures remains to be seen, but a greater stimulus to the market. Shanghai nickel rose more than 3% in intraday trading. SMM believes that in addition to crude oil, the macro performance is relatively stable, and the fundamentals of nickel can perform fairly well, but it cannot be too optimistic. Although there are positive reports that nickel imports have been blocked and overseas first-class nickel enterprises have reduced production, it is still difficult to improve the balance of supply and demand as a result of the large invasion of nickel pig iron in Indonesia. The stainless steel market is still worried, but even if there is limited room for decline, it is intertwined. In the short term, the nickel market is still more suitable for short-term operation. Aluminum, April 27, the arrival of less than superimposed downstream demand efforts to maintain, SMM statistics of domestic electrolytic aluminum social inventory fell 76000 tons from the previous Thursday to 1.283 million tons. "View details

The black system has a narrow vibration and a V-shaped reversal. The output of the hot coil supply end steel plant has rebounded. The demand side or under the support of pre-node replenishment has slightly improved, and the fundamentals are in a state of double increase in supply and demand. However, it is worth noting that under the suppression of high inventories, traders are strongly willing to reduce their warehouses. At present, both sides of the spot thread supply and demand still have a certain recovery space, the spot price rising power is still insufficient, in the case of high inventory, the probability continues to maintain a narrow range of volatility.

Crude oil fell 4.75% in the previous period. Us crude oil futures prices also fell on signs that global crude oil storage space was being quickly filled, sparking fears that production cuts might not fall as fast as demand caused by the new crown epidemic. Earlier data showed that the presence of US crude oil depots rose to 518.6 million barrels in the week to April 17, close to the all-time high of 535 million barrels in 2017, while offshore crude oil reserves had reached a record high of 160 million barrels. Trading was volatile last week, with demand falling by about 30 per cent as a result of the outbreak, and the sell-off has dominated the market since the beginning of March.

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 290 ~ 300, the average price rose 25%; wet copper rose 240 ~ 250, the average price rose 20%. The average price of electrolytic copper rose 735 yuan / ton to 42955 yuan / ton, and the average price of wet copper rose 730 yuan / ton to 42905 yuan / ton. In the spot market, stocks in Guangdong continued to fall sharply over the weekend, which spurred the holders to insist on high water shipments. The morning quotation was generally about 30 yuan / ton higher than on Friday, but as the copper price rose sharply, the mood of receiving goods downstream declined, and the holder slightly lowered the quotation for shipments. By about 11:00, the transaction price of good copper and water copper was 290300 yuan / ton. Wet copper supplies continue to be tight, trading at about 250 yuan / ton today. Overall, due to copper prices and rising water are higher, the downstream desire to receive goods is low, the market trading is general.

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Zinc: Shanghai Zinc mainstream transaction in 16290-16410 yuan / ton, Shuangyan, Chihong transaction in 16330-16440 yuan / ton; Shuangyan, Chi Hong quoted price of 150-160 yuan / ton in May; Shuangyan and Chihong reported 180-200 yuan / ton in May; Shuangyan and Qihong reported 180-200 yuan / ton in May; Shuangyan and Chihong traded in 16200-16320 yuan / ton. Shanghai Zinc 2005 contract opened high after finishing operation, the morning market closed at 16190 yuan / ton. The smelter shipped normally, after the end of the month, the traders entered the settlement closing stage, the market trading atmosphere became weaker, the intra-day market quotation remained stable at 150-160 yuan / ton, and the low price was the invoice source next month. The morning market did not recognize the rising water relatively smoothly, with the average price and average price-5 relatively smooth, and the transaction on the second exchange was limited, while Shuangyan circulation was tight and the quotation was more divergent. There are reported water 200 yuan / ton, there are also reported water 240 yuan / ton, however, the disk significantly increased after the downstream consumption is obviously suppressed, Shuangyan follow-up actual quotation transaction for the rising water 180-190 yuan / ton, the overall volume is small, the overall transaction within the day is slightly dull.

The mainstream transaction of zinc ingots in Tianjin market was 16510-17620 yuan / ton, and that of ordinary brands was 16510-16660 yuan / ton. The contract for 2005 rose 300 yuan / ton to 400 yuan / ton. Tianjin market compared with Shanghai stock market from 190 yuan / ton to 180 yuan / ton. Today, Shanghai zinc high open high walk, the spot market to maintain the discount quotation, the quotation is more unified, the ordinary brand lark newspaper in the 05 contract up 320 yuan / ton, the red dragon newspaper in the 05 contract bid up 350 yuan / ton, Chi Hong reported in the 05 contract rose 320 yuan / ton, Shuangyan newspaper in the 05 contract reported 300 yuan / ton, the high price brand Zijin reported 400 yuan / ton to the May contract. Today, zinc prices open high, the spot market to maintain a discount quotation, today Shuangyan and imported kz have arrived, Guangdong zinc ingots are still on the way, the spot market liquidity has been supplemented; downstream, today's price increases, downstream inquiry willingness to accept weaker, only part of the downstream to maintain the need to buy goods. Overall, trading today was weaker than last week. The transaction of zinc ingot is near 1646016610 yuan / ton.

The mainstream transaction in Ningbo was 15970-16020 yuan / ton, and the price difference between Ningbo and Shanghai ordinary brands widened from 50 yuan / ton to 60 yuan / ton on Friday. The price difference between Ningbo and Shanghai increased by 180-230 yuan / ton to 180-230 yuan / ton, and the price difference between Ningbo and Shanghai increased from 50 yuan / ton to 60 yuan / ton on Friday. Today, Ningbo market has some of the goods pulled by Guangdong circulation, alleviating the shortage of goods in the market. In the morning, the market quotation was more concentrated in the first period of the morning. Tiefeng reported an increase of 200 yuan / ton on the May contract, Kirin reported an increase of 210-220 yuan / ton on the May contract, and Huize News raised the water by 230 yuan / ton on the May contract. In addition, some of Guangdong's Feilong supply was reported near 190 yuan / ton in May. However, due to the larger increase in disk size, the transaction is poor, and the willingness to buy downstream is poor. In the second period, some traders cut Kirin's offer to about 180 yuan / ton, and transactions improved slightly. Overall, today's deal was worse than last Friday.

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