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[SMM midday review] the general decline of non-ferrous metals in Shanghai is unique in showing narrow fluctuations in the black system. Crude oil fell 2.58% in the previous period.
May 12,2020 11:55CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

SMM5 March 12: at the close of trading at noon, non-ferrous metals generally fell, only Shanghai lead rose 1.98%. Data from today's Bureau of Statistics show that in April, the situation of prevention and control of the epidemic situation of Xinguan pneumonia in China was further consolidated, and the order of production and life was restored quickly. On a month-on-month basis, CPI fell 0.9 per cent, 0.3 percentage points lower than the previous month; in April, domestic industrial product prices continued to fall due to factors such as the epidemic and the continued decline in international commodity prices. On a month-on-month basis, PPI fell by 1.3%, an increase of 0.3 percentage points over the previous month. Interpretation by the Bureau of Statistics: the increase in CPI continued to decline in April and the decline in PPI expanded. Recently, the overall performance of non-ferrous metals is relatively strong, especially copper, aluminum and zinc, which has risen by about 10% since April. Rush to work phenomenon superimposed enterprises take the initiative to replenish inventory, demand is better, inventory is also reduced to a low level. While the foreign mining side expressed concern about copper supply, an industry group in Chile said that the copper market had a supply surplus of 200000 tons this year as the new crown pneumonia epidemic hit the global economy and hit copper demand. Diego Hernandez, president of Chile's national mining association (Sonami), said that the global economy is in the doldrums, affecting both supply and demand. It points out, "based on the information we have right now, demand is expected to fall by 3.5% and by 4%.

Black iron ore rose 0.16%, while thread hot rolls fell slightly by 0.1%. Downstream car production and sales completed 2.102 million and 2.07 million respectively in April, up 2.3 per cent and 4.4 per cent respectively from a year earlier, ending a 21-month decline in sales. At this stage, due to the strong performance of demand, superimposed macro infrastructure policy warm expectations, the price sentiment is high. But pay attention to demand after entering the rainy season. Under the economic situation this year, the policy has greatly interfered with the demand for mature materials. Traditionally, due to the influence of the weather in May, the demand for mature materials has weakened to a certain extent. In addition, the short-term scrap price is strong shock, the strong scrap price makes the blast furnace cost advantage again prominent.

Crude oil fell 2.58% in the previous period. But international crude oil futures rose early Tuesday as Saudi Arabia unexpectedly promised to cut production in June to help cut excess oil on the international oil market. Saudi Arabia announced overnight that it would cut production by another 1 million barrels a day in June, bringing the total to 7.5 million barrels a day, down nearly 40 per cent from the April level. The surplus crude oil in the international market is on the rise as a result of the sharp drop in fuel demand as a result of the new crown epidemic. ICE7 monthly Brent crude oil futures rose 0.37 per cent to $29.74 a barrel. Us crude oil futures for July rose nearly 1 per cent to $25.31 a barrel.

The trading was suspended at noon.

Today's stock

Zinc: the mainstream transaction of Ningbo Brand was 16980 RMB17080 / ton, and the price difference between Ningbo and Shanghai ordinary brands was narrowed from 30 yuan / ton yesterday to 20 yuan / ton. The contract water for ordinary brands in Ningbo was raised to around 2005 yuan / ton, and the price difference between Ningbo and Shanghai ordinary brands was around 90,120 yuan / ton. The holder actively shipped the goods and took the initiative to lower the rising water. In the first period of the morning, Huize reported that in the vicinity of 120 yuan / ton for the May contract, Tiefeng, Hualian, West Coal Mine and so on raised the water by about 110 yuan / ton for the May contract, and 160 yuan / ton for the June contract, converted to 120-130 yuan / ton for the May contract, but on the whole, the transaction situation was relatively poor. Entering the second trading session, Hualian News rose 90 yuan / ton to the May contract and 100 yuan / ton to the downstream newspaper in June, and the transaction situation was relatively good. Overall, today's market trading is still light, downstream buying interest is not good.

The mainstream transaction of zinc ingots in Tianjin market is 17010-18290 yuan / ton, and that of ordinary brands is 17010-17150 yuan / ton. The contract for 2006 is about 120 yuan / ton to 250 yuan / ton, and the water in Tianjin is about 60 yuan / ton higher than that in Shanghai. Today, the price of zinc concussion in Shanghai is lower, and the spot market maintains a rising discount price, which is relatively uniform. The ordinary brand lark newspaper quotes 150 yuan / ton for 06 contract, Hongxin quotes 210 yuan / ton for 06 contract, Chi Hong quotes 150 yuan / ton for 06 contract, fourth Ring Road quotes 150 yuan / ton for 06 contract, and imported KZ quotes 120 yuan / ton for 06 contract. High-priced brand Zijin on the June contract rose 250 yuan / ton near. Zinc prices weakened today, most traders moved to the 06 contract quotation, the quotation was basically flat yesterday, the increase in volume, traders' willingness to bid weaker; downstream, Tianjin spot prices today slightly lower, downstream receiving has not yet significantly improved, to maintain the need for procurement. On the whole, the deal was mediocre today. Zinc ingots are traded near 1696017100 yuan / ton.

The mainstream transaction of Guangdong zinc was 16850-16960 yuan / ton, and the quotation was concentrated on the Shanghai zinc 2006 contract from 20 yuan / ton to 40 yuan / ton, and the discount of 120 yuan / ton in Guangdong market was 10 yuan / ton larger than that in the previous trading day. In the first trading session, the initial warehouse receipt resources of some holders were quoted at a higher price, and the spot quotation was also relatively high, but the market demand was poor, traders received goods at a low price, and the market net price fell by 10 yuan. some traders were worried that it would be difficult to maintain the rising water of the 06 contract after delivery and exchange months, and they began to lower the rising water quotation one after another, and the market had a strong wait-and-see mood. Huize, Tiefeng offer to Shanghai zinc June contract 0-40 yuan / ton, Fei Longsheng discount 20 yuan / ton. The second trading session, the downstream bargain just need to purchase, the demand is limited, the holder continues to reduce the price of shipments, traders enter the market at low prices, spot opened to 06 contract discount deal. Kirin, Mengzi, Huize, Tiefeng offer to the June contract discount 10 yuan / ton to Pingshui, Tiefeng discount 10-20 yuan / ton. Kylin, Mengzi, Huize, Tiefeng mainstream transaction in 16850-16960 yuan / ton.

The mainstream transaction of zinc ingots in Tianjin market is 17010-18290 yuan / ton, and that of ordinary brands is 17010-17150 yuan / ton. The contract for 2006 is about 120 yuan / ton to 250 yuan / ton, and the water in Tianjin is about 60 yuan / ton higher than that in Shanghai. Today, the price of zinc concussion in Shanghai is lower, and the spot market maintains a rising discount price, which is relatively uniform. The ordinary brand lark newspaper quotes 150 yuan / ton for 06 contract, Hongxin quotes 210 yuan / ton for 06 contract, Chi Hong quotes 150 yuan / ton for 06 contract, fourth Ring Road quotes 150 yuan / ton for 06 contract, and imported KZ quotes 120 yuan / ton for 06 contract. High-priced brand Zijin on the June contract rose 250 yuan / ton near. Zinc prices weakened today, most traders moved to the 06 contract quotation, the quotation was basically flat yesterday, the increase in volume, traders' willingness to bid weaker; downstream, Tianjin spot prices today slightly lower, downstream receiving has not yet significantly improved, to maintain the need for procurement. On the whole, the deal was mediocre today. Zinc ingots are traded near 1696017100 yuan / ton.

Updating.

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