[SMM Daily Review] Shanghai Aluminum Shanghai tin rose more than 1%. Non-ferrous metals rose and fell. Black series. Crude oil fell 1.66% in the previous period.

SMM5 11 News: today, non-ferrous metals mixed, electrolytic aluminum inventory fell to boost aluminum prices. Terminal demand slowly improved, with stainless steel rising 3.95%. In terms of inventory data, electrolytic aluminum stocks fell by 70000 tons compared with last Thursday, adding up to downstream demand to maintain "viewing details. As of May 11, the total inventory of zinc ingots in SMM Seven places was 237600 tons, an increase of 1400 tons over last Wednesday (May 6). An increase of 600 tons over last Friday (May 8)" the stainless steel market may remain on the strong side in the near future. The rise of raw material costs and the price attitude of steel mills may have a certain support to the price, but in the later stage, the supply of orders arrives one after another, the supply increases, and whether the downstream demand can maintain a good state or not. the continuous consumption of market supply plays a decisive role in the follow-up trend of stainless steel market. Shanghai nickel rose and fell in the morning market, although the price rose, but the Russian nickel holder's willingness to adjust the price is weak, on the one hand, the market low price supply is difficult to find, on the other hand, from the May Day trading weakening, traders choose to sit and watch the future, waiting for the downstream consumption to pick up.

The black series rose weakly today, with iron ore down 0.32%, threads down 0.14% and hot rolls up 0.03%. Prior to this, the Ministry of Finance issued a $1 trillion special debt line ahead of schedule, coupled with the recent joint introduction of infrastructure REITs policies by the CSRC and the Development and Reform Commission, which will stimulate market development. Steel fundamentals continue to maintain a double increase in supply and demand, but there have been no significant changes. In the market, if the pressure level is broken through in the short term, there may be a pullback. On the whole, even if the recent decline in steel inventory rate, steel price upward space is limited, but the medium-term steel rebound phase is not over "to see the details."

Crude oil fell 1.66% in the previous period. Sources say Iraq's total crude oil production, including from the semi-autonomous Kurdish region, remained almost stable in April, although the old OPEC+ production reduction agreement expired in March. Iraq is the second largest oil producer of OPEC. Iraq's crude oil production in April was 4.48 million barrels a day, roughly stable at 4.5 million barrels a day in March, although some OPEC allies raised production to record levels that month, partly delaying supply pressures.

As of today's daytime close:

Today's capital flow

In terms of capital flow, industrial products strongly absorbed gold, the black chain and chemical index respectively received 5.48 and 327 million financial support, iron ore is more favored by funds, only 386 million. On the agricultural side, the grain and feed sector as a whole was abandoned by money, but Apple soared in the afternoon, driven by 434 million dollars. The trend of Shanghai gold was stable within the day, but more than 500 million funds left the market.

Brief comment of SMM analyst on May 11

Copper: today, the main force of copper in Shanghai opened at 43560 yuan / ton in the morning. After the opening of the session, the copper price rose straight up to 43800 yuan / ton, and maintained its rising trend, rising to a daily high of 43950 yuan / ton, and then maintaining a narrow range of volatility around 43860 yuan / ton. Before noon, many flat copper prices gave up their gains, closing at 43750 yuan / ton at noon. Copper prices continued to fall in early afternoon trading, giving up all day gains and closing at 43500 yuan per tonne, up 0.39 per cent or 0.39 per cent. Shanghai copper main contract within the day to increase positions by 3004 hands, to 116000 hands, long and short sides to varying degrees to increase positions; trading volume decreased by 6101 hands, to 73000 hands. Near the month of exchange, the long and short sides accelerated the reduction of positions, today Shanghai Copper contract reduction of 7375 hands, to 25505 hands, mainly for short positions, 0506 contract spread expanded to 210 yuan / ton. Shanghai Copper 06 and 07 contracts increased their positions by more than 5000 hands. Within the day, the main force of Shanghai copper rushed higher, mainly due to the continuous improvement of the macro environment. China's central bank yesterday released the first quarter Monetary Policy implementation report, sending signals to the outside world that more stimulus policies may be introduced to support the economic recovery. Europe and the United States have restarted their economies one after another, Australia announced the gradual lifting of the "three stages", the United Kingdom issued a road map to fight the epidemic, and plans to gradually relax the relevant measures. Countries have relaxed restrictions on epidemic prevention measures, superimposed on the relaxation of Sino-US relations, and market risk appetite has further warmed up. Today, the main force of Shanghai copper rose rapidly, and then upward faced with the early short jump gap, short profit leave, short test short, rising momentum is insufficient, copper price performance for high fall. Technically, there is still room to rise, with a short-term target of 44000 yuan per ton.

Aluminum: Shanghai aluminum main force 2007 contract morning 12455 yuan / ton, at the beginning of the day through the two Changyang line to touch 12560 yuan / ton, continue to perform weakly, and then around 12535 yuan / ton throughout the day to make a narrow concussion, the upper and lower space is less than 40 yuan / ton, the end of the day hit the intraday high point 12570 yuan / ton, closed at 12535 yuan / ton, up 105 yuan / ton, up 0.84%, the trading volume decreased 21070 to 83909 hands. Position reduced by 1586 hands to 142000 hands, closed in the small positive line, the center of gravity is below the 60-day moving average, the daily MACD red line is shortened, it is expected that there is greater resistance to 12700 yuan / ton in the short term. Today, the monthly difference between the 2005 and 2006 contracts widened to around 240 yuan / tonne at one point, and the Back structure expanded further, focusing on the changes in long short positions in contracts in the following month.

Zinc: intraday Shanghai zinc main force 2007 contract opened at 16905 yuan / ton, long positions at the beginning of the day by short pressure, Shanghai zinc pull up slowly down to 16880 yuan / ton daily average near the narrow range finishing operation. In the afternoon, Shanghai zinc fell again to hit a low of 16815 yuan / ton, closing down 16830 yuan / ton, down 110 yuan / ton, down 0.65%, trading volume decreased by 34373 hands, position increased by 5813 hands to 123000 hands. Shanghai zinc suspended the rise to adjust, received a small negative column, but the accumulation of zinc social inventory is not obvious, highlight consumption toughness, superimposed supply-end story support, within the day zinc June-August difference widened again, the expected zinc adjustment range is limited.

Updating.

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Registration contact: Lu Qingping, Iron and Steel Division of SMM

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