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[SMM daily review] non-ferrous metals fell only Shanghai aluminum rose nearly 1% forward supply of pressurized iron ore fell 1.74%
Apr 28,2020 16:57CST
translation
Source:SMM
Nonferrous metals generally closed lower today, and even the sound of reserves in recent days has failed to continue to boost the market as oil prices have suffered another Waterloo. However, Shanghai aluminum rose against the trend, up 0.93%.
The content below was translated by Tencent automatically for reference.

SMM4 28: non-ferrous metals generally closed down today, even in recent days failed to continue to boost the market, as oil prices were once again Waterloo. However, Shanghai aluminum rose against the trend, up 0.93%. According to SMM, under the background that the production and maintenance capacity of the early electrolytic aluminum plant has not yet been fully restored, the arrival of aluminum ingots in East China, South China and Henan has continued to decline in the past two weeks. At the same time, commercial collection and storage news has recently appeared in Yunnan and Gansu, and short-term profit news has concentrated on the supply side. However, in terms of the pressure level of 13000 yuan / ton above, it is difficult to break through quickly for the time being. It is expected that there will still be great resistance in the range of 12800-13000 yuan / ton in the short term. It is necessary to pay attention to the follow-up actual consumption situation and the possible news of other provinces' collection and storage plans in the market. On the nickel side, the two largest Philippine nickel miners said on Tuesday that they expected to gradually resume mining and shipping in the country's main ore-producing areas from May 1. Asian nickel company (Nickel Asia) and global Nife holding company (Global Ferronickel Holdings) are preparing to restart operations in North Surigao in the southern Karaga region, where restrictions are expected to be relaxed after April 30. According to SMM, the mines under the above two enterprises are mainly located in Suriname, and open up exports as scheduled. The two major restarts in the Philippines have been expected in the market, with little impact on nickel prices.

The black system was green across the line, and iron ore steel fell by more than 1%. Iron ore arrivals are expected to be 11.21 million tons last week, down 820000 tons from the previous month, according to SMM tracking data. BHP Billiton said recently that it would begin talks on the possibility of increasing iron ore exports. The company hopes to increase its Australian iron ore export capacity by 14 per cent, in a sign of its return to significant growth ambitions. It is understood that BHP Billiton is currently allowed to export 290 million tons of iron ore from Port Hedland in Western Australia every year. If market conditions permit, it is hoped that this limit will eventually be raised to 330 million tons, and the iron ore supply end will still be under pressure for a long time. In terms of building materials, the current terminal demand has basically returned to the normal level, coupled with the high level of building materials inventory will be in the process of continuous degeneration, spot prices do not continue to significantly explore the space. "View details

Crude oil fell 6.05% in the previous period. Previous production cuts have not boosted oil prices, which have been volatile recently. But Russian Energy Minister Novak said Tuesday that once the May production cut agreement comes into effect, the oil market will begin to restore balance. Oil prices will not rise sharply in the near future because of high global inventories. The Organization of Petroleum Exporting countries (OPEC) and other major oil producers, including Russia, have agreed to cut nearly 10 million barrels of oil a day from May to June, accounting for about 10 per cent of global production. The United States, Canada, Norway and Brazil are expected to participate in production cuts.

As of today's daytime close:

As of 16:10, the new US dollar denominated small metals contracts on the HKEx are as follows:

Today's capital flow

In terms of capital flows, the commodity index had a net inflow of 562 million yuan. Coal plate tumbled across the board, attracting 915 million funds into the game, of which coke gained 33600 hands to increase its holdings, inflow funds of 746 million yuan. As countries continue to press ahead with their economic plans, risk aversion has been curbed and 660 million dollars have fled the precious metals sector. In addition, the high diving LPG encountered 42600 hands reduction, outflow of funds up to 546 million yuan.

Brief comment of SMM analyst on April 28

Copper: today, the main contract of Shanghai copper is low at 42300 yuan / ton, the opening short position reduction copper price short-term pull up about 42300 yuan / ton. After that, the price of copper was suppressed to a daily low of 42130 yuan / ton. At this time, copper prices rebounded, climbing to the top of the daily moving average, closing at 42410 yuan / ton at noon. In the afternoon, the overall fluctuation of the disk is small, basically in the range of 42320-42390 yuan / ton to maintain stability. Near the close of the long departure, copper prices fell slightly, and finally closed at 42300 yuan / ton, down 260 yuan / ton, down 0.61%. Today, the daily position of the main copper contract in Shanghai decreased by 1613 hands to 113000 hands, mainly by the reduction of long positions, while the trading volume decreased by 27000 hands to 71000 hands. Shanghai Copper 2005 contract day reduction of a total of 5944 hands, to 51000 hands, mainly for the long reduction. The low opening of copper in Shanghai today was mainly affected by the decline in international crude oil prices. The largest oil-listed trading fund sold the June WTI crude contract, causing its price to fluctuate again, falling below $11, significantly widening the spread from the July contract. Fears of a collapse in crude oil prices have returned in the early days, dragging down copper prices. And basically in the face of copper prices still have support. In China, following the planned commercial collection and storage of Yunnan Province, Gansu Province has also formulated a storage plan for 436000 tons of non-ferrous metal products, the news boosted copper prices, and concerns about tight supply of copper mines remain, providing bottom support for copper prices. At present, Shanghai copper receives the cross star, the long and short sides game situation is still not clear, the rush high pressure is still big. Continue to pay attention to the global macro situation, can further push up the price of copper.

"the second China (Yingtan) Copper Industry Summit and the 15th China International Copper Industry chain Summit"

Lead: within the day, the Shanghai lead main force 2006 contract short opened at 13995 yuan / ton, pre-season stock expected to be basically desalinated, superimposed recycled lead discount small expansion, short the opportunity cost of funds decreased, the Shanghai lead center of gravity shock fell to 13770 yuan / ton, finally closed at 13770 yuan / ton, the position increased 209 hands to 25773 hands, down 170 yuan / ton, down 1.22%. Shanghai lead closed in the negative line, there is a strong suppression at the Wansi pass, this wave breakthrough also ended in failure, the expectation of weak fundamentals, or will be reflected after May Day, before the Shanghai lead probability to maintain the range of operation.

Zinc: intraday Shanghai zinc main force 2006 contract opened at 16045 yuan / ton, intra-day market long and short forces are more balanced, Shanghai zinc slowly rose, in 16100 yuan / ton about narrow range finishing operation, once touched 16160 yuan / ton, quickly fell back, the final closing price was 16125 yuan / ton, up 35 yuan / ton, up 0.22%, trading volume decreased 39001 hands children 84091 hands, position volume reduced 2458 hands to 85060 hands. Intraday Shanghai zinc upward break through the 60-day moving average suppression, two consecutive days to reduce positions upward, this week funds gradually to the far moon layout, zinc far moon Back structure has been weakened, on the near-term fundamentals, expected zinc is expected to stand firm all averages.

"2020 (15th) lead and Zinc Summit

Updating.

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