SMM5 March 19: today's market continues Monday's market, in the case of no major changes in fundamentals, the market generally rebounded under the influence of macro-warming sentiment. The main force of Shanghai Aluminum closed up for four consecutive days and continued to be strong today. The main force of Shanghai Aluminum 2007 rose sharply in early trading, the intraday high once touched the Wan San pass, the fundamentals continued to be strong to the warehouse, and the good downstream consumer demand also supported Shanghai Aluminum. SMM point of view: short-term Shanghai Aluminum is still dominated by strong shocks, we need to continue to pay attention to the macro signal release. In addition, we need to pay attention to the changes in the spot circulation of the market and the ranking of multi-short positions in the exchange. On the copper side, it is reported that once copper prices recover and restrictions imposed by the new crown virus are relaxed, Nevada Copper (Nevada Copper) 's pumpkin hollow underground copper mine Pumpkin Hollow expansion project will resume. Prior to this, affected by the epidemic, Nevada Copper temporarily suspended the production activities of the Pumpkin Hollow project for at least six weeks, which will be adjusted in accordance with government measures. The Pumpkin Hollow underground mine, which starts production in December 2019, is expected to produce 6.5 million pounds of copper equivalent per year, at a total maintenance cost of $1.86 per pound.
Black continued to rise throughout the department, driven by iron ore yesterday, finished materials are higher, the spot market also showed a big increase. Thread increases range from 60 cents per ton to 80 yuan per ton, while hot rolls rise to 120 yuan per ton. With the decline of inventory, the approach of the two sessions, and the support of the raw materials, the performance of finished wood for nearly half a month is on the strong side. However, from the rise of iron ore and the overall operation of the black system, the short-term operation may continue to be strong. The people's Government of Qian'an City promulgated the measures for the Prevention and Control of Air pollution in the second half of May in Qian'an City, which will be tightened from 8: 00 on May 18 to 24:00 on May 31, 2020. For the time being, the production reduction is limited, but there is a high probability that it will be strictly implemented during the two sessions, or disturb the ore price.
Crude oil rose 0.65% in the previous period. The good news from the vaccine spurred a sharp rise in oil prices. This is the highest settlement price for oil futures for cloth and US oil since March 11, when oil prices began to plummet when negotiations on a production reduction agreement between the Organization of Petroleum Exporting countries (OPEC) and Russia broke down. Bob Yawger, director of Mizuho Energy Futures, said it took more than two months for US oil futures to basically clean up the wreckage after the March OPEC+ meeting. Oil prices have risen for the third week in a row, but are still well below the peak reached in January, when WTI was trading above $60 a barrel.
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Copper: today, the spot price of electrolytic copper in Guangdong province rose by 20% to the current month's contract, while the average price of wet copper rose by 160% to 170%, with an average price increase of 30%. The average price of electrolytic copper is 44120 yuan / ton, and the average price of wet copper is 44075 yuan / ton. In the spot market, inventories in Guangdong fell again today after a brief increase, coupled with the continued rise in Shanghai, which made the shippers generally bid up, and the rising water showed a concussive upward trend in the day. Flat copper still had a small offer of RMB190 / ton in early trading, but it soon sold out, and then the rising water gradually rose. By around 11:00, good copper had risen to 220,230 yuan per ton, and leveling copper had risen to 200pm 210yuan / ton. Wet-process copper also rose to 180 yuan per ton. However, high rising water and high absolute consideration limit the activity of market trading, today's downstream is mainly in need of procurement, do not want to replenish more.
Zinc: the mainstream transaction of Ningbo Brand was 16980 RMB17080 / ton, and the price difference between Ningbo and Shanghai ordinary brands was narrowed from 10 yuan / ton to near Pingshui, while the price of ordinary brands in Ningbo increased to about 140,160 yuan / ton for 2006 contracts, and the price difference between Ningbo and Shanghai ordinary brands narrowed from a discount of 10 yuan / ton. In the first session of the morning, the holder of the Ningbo market continued to quote yesterday's quotation. The West Mining News increased the water by 140 yuan / ton for the June contract, and Yunxi News increased the water at about 150 yuan / ton for the June contract. Huize, Kirin and Tiefeng newspaper are around 160 yuan / ton for the June contract. But the market rose sharply, downstream enterprises are more bearish, the willingness to receive goods is not good, entering the second period of time, the trade market delivery is hopeless, the quotation has not changed, basically flat in the June contract rising water 140 won 150 yuan / ton. Generally speaking, the orders of downstream enterprises have not taken a turn for the better, the disk price is higher, and the willingness of downstream enterprises to receive goods is obviously worse than that of yesterday.
The mainstream transaction of zinc in Guangdong Province was 16790mur16960 yuan / ton, and the quotation was concentrated on the price of 40 million yuan / ton in the 2007 contract for Shanghai zinc, and the discount on the Guangdong stock market was the same as that of the previous trading day. The first trading session, although futures prices are high, but the holder based on Guangdong inventory continues to decline, price sentiment is strong, quotations are still relatively high, traders meet low-price supply demand, downstream is facing high water, high prices overall wait-and-see, Kirin, Mengzi quoted for the Shanghai zinc contract for July rising water 60rel 70 yuan / ton, Feilong rising water 40 yuan / ton. In the second trading session, in the absence of downstream buying support, market demand weakens, but the price of the holder is still relatively strong, and the market trading volume is limited. Kirin, Mengzi, Huize, Tiefeng quoted prices for the Shanghai zinc contract for July to rise 50 RMB70 / ton. The mainstream transactions of Kirin, Mengzi, Huize, Tiefeng and Feilong were 16790 Mel 16960 yuan / ton.
The mainstream turnover of zinc ingots in Tianjin market was 17000mur18270 yuan / ton, while that of ordinary brands was 17000mur17130 yuan / ton. for the 2006 contract, the price of rising water was around 200yuan / ton to 270yuan / ton, and the Tianjin market was about 60 yuan / ton higher than that of Shanghai. Today, the price of zinc in Shanghai expanded, and the spot market maintained a discount price, and the price was more divergent. The ordinary brand Bering News quoted a rise of 200 yuan / ton for the 06 contract, and Hongyi quoted a rise of 240 yuan / ton for the 06 contract. Chi Hong quoted a rise of 210 yuan / ton for the 06 contract, Shuangyan quoted a rise of 200 yuan / ton for the 06 contract, and the high-priced brand Zijin quoted a rise of 270 yuan / ton for the June contract. Today, zinc prices rise to a high level, traders and smelters are more willing to raise prices, but only low-price brands have a better deal, while high-price brands have a light deal; downstream, the spot price in Tianjin has broken the Wanqi barrier, and the downstream is more willing to wait and see. The overall mood of receiving goods is not good. Overall, trading today is weaker than yesterday. Zinc ingots were sold at around 16,950 RMB17080 per ton.
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