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[SMM afternoon Review] New developments in vaccines boost the market as a whole, and the decline of iron ore is narrowed by the collective rebound of black iron ore.
May 27,2020 11:54CST
translation
Source:SMM
The metal market was warm in the morning, with shanghai aluminum up more than 0.7%, shanghai lead up more than 0.9%, and shanghai tin up more than 0.8%. It is understood that Novax (Novavax), a US biotechnology company, announced that the new crown vaccine developed by the company has begun to enter the clinical trial stage, which is the 10th vaccine in the world to enter the clinical trial stage. Coupled with the impact of the European Union to restart the economy, the outer disk financial market rose generally.
The content below was translated by Tencent automatically for reference.

SMM5 March 27: the metal market is warm in the morning, with Shanghai aluminum up more than 0.7%, Shanghai lead up more than 0.9%, and Shanghai tin up more than 0.8%. It is understood that Novax (Novavax), a US biotechnology company, announced that the new crown vaccine developed by the company has begun to enter the clinical trial stage, which is the 10th vaccine in the world to enter the clinical trial stage. Coupled with the impact of the European Union to restart the economy, the outer disk financial market rose generally. Shanghai tin opened high in early trading. On the supply side, domestic refined tin production is still tight. SMM expects China's refined tin production to be limited by raw materials, and its output may remain low in the short term. On the demand side, since the May Day holiday, the overall market demand in Shanghai is relatively weak, most of the downstream enterprises just need to purchase, and with the rising tin prices, there is a fear of heights in the market. SMM believes that the short-term or high concussion situation, the lower support is expected to be located near the integer level of 130000 yuan / ton, the upper resistance is located near the previous high of 136000 yuan / ton; recently, Shanghai nickel oscillated near the 100, 000 pass, and the domestic port nickel mine inventory increased slightly for the first time this year, but the short-term nickel ore supply is limited, and the price of nickel and iron remains strong. As the Philippine nickel mine shipments return to normal in the later period, the shortage of raw material inventory will be alleviated and the upward force will be weakened.

All black lines rebounded, with threads up 0.03%, hot rolls up 0.5%, and iron ore down 0.35%. Iron ore port spot market prices fell slightly in early trading, some merchants are more reluctant to sell. SMM tracking data show that Australia and Pakistan outbound month-on-month increase, short-term supply side shipping increment superimposed steel prices pressure callback of iron ore prices, the current market in the near future may be weak consolidation. Under the condition that the supply of thread is close to saturation, the steel price in June is likely to show a strong trend.

The last period of crude oil is temporarily stable. Recently, the market has felt the momentum of the rise in crude oil, and the Russian Ministry of Energy also expects the oil market to rebalance in July. Russia's energy ministry expects oil demand to improve in May, noting that it has seen a major shift in global oil supply and that intentional or unintentional production cuts will increase production to nearly 15 million barrels a day. According to Russia's Ministry of Energy, the global oil supply surplus is between 700 and 12 million barrels per day. Sources pointed out that OPEC+ hopes to maintain the existing production reduction agreement until June, in order to rebalance the oil market. Saudi Arabia and Iraq, the two largest oil producers of the OPEC, have reaffirmed their commitment to rebalancing the oil market. Saudi Arabia has pledged to cut production by an additional 1 million b / d in addition to existing quotas. But Iraq may struggle to meet its promised goals.

Close by noon

Today's spot

Copper: today, spot electrolytic copper in Guangdong province rose 220: 230 to the current month's contract, with an average price up 20%; wet copper rose 160: 170, with an average price up 10%. The average price of electrolytic copper is 44195 yuan / ton, and that of wet copper is 44135 yuan / ton. In the spot market, there were more wet-process copper out of the warehouse yesterday, but the arrival volume was still limited, resulting in a significant decline in inventories, which have fallen to 23400 tons in Guangdong, refreshing a new low for the year. Affected by this, today's holders generally bid for delivery, and the daily rising water shows a fluctuating and high situation. The mainstream transaction price of good copper is 230pm 240 yuan / ton, the mainstream transaction price of flat copper is 220pm 230 yuan / ton, and the mainstream transaction price of wet copper is 170mp 180 yuan / ton. The mainstream transaction price of copper is 180 yuan / tonne, while the mainstream transaction price of flat copper is 230 yuan / ton, while the mainstream transaction price of flat copper is 230 yuan / ton. Overall, low inventory holders generally bid for shipments, the lower reaches are forced to accept high rising water, and the overall transaction is general.

Aluminum: early afternoon aluminum concussion uplink. In the morning, the spot price in Wuxi area of Shanghai was 13330mur13350 yuan / ton, and the morning transaction was relatively light. As the big families began to announce their purchase plans, the transaction heat gradually rose. After 10:15, the spot price began to concentrate in 13340Muth13360 yuan / ton, rising water in 90muri 110yuan / ton, the price was 20 yuan / ton higher than yesterday, and the spot price in Hangzhou area was 133370Mui 13390 yuan / ton. Before noon, the shippers are more active, some middlemen are willing to receive goods at a low price, and the two sides have a good deal, but there is a slight stalemate in price. On the whole, today's market trading volume is mainly contributed by large traders or large households, downstream receiving attitude is cautious, because it is not optimistic about the future price, today's buying attitude is wait-and-see, just need to pick up the goods. The overall transaction in East China is mediocre today.

Lead: South China lead 14425 yuan / ton in Guangdong market, 50 yuan / ton to SMM1# lead price rise; Jinli 14325 ~ 14375 yuan / ton, 50 yuan / ton to flat water price to SMM1# lead price; Wanyang 14375 yuan / ton, to SMM1# lead average price level quotation; Shuikoushan 14275 yuan 14325 yuan / ton, to SMM1# lead average discount 50,100 yuan / ton; Hunan Jingui 14175 yuan 14225 yuan / ton, 150,200 yuan / ton to SMM1# lead price Jiang Copper 14425 yuan / ton, the average price of SMM1# lead 50 yuan / ton quotation. Jiangxi Jinde is 14325 yuan / ton, and the average price discount to SMM1# lead is 50 yuan / ton. Yunnan small factory 14025 yuan / ton, the average price of SMM1# lead discount 300 yuan / ton. Spot prices continue to be strong upward, refinery single transactions in the doldrums, mostly long single transactions, today's overall spot transactions are bleak.

Zinc: the mainstream transaction of zinc in Shanghai was 16540 yuan 16600 yuan / ton, Shuangyan 16670 yuan / ton, imported zinc 16520 yuan 16590 yuan / ton. Shuangyan quoted water 140 yuan 150 yuan / ton in June; Shuangyan quoted water 210 yuan / ton in June, imported zinc quoted water 130 yuan / ton in June, and zinc mainstream traded 16470 yuan 16530 yuan / ton in June, while Shuangyan quoted water 210 yuan / ton in June, imported zinc traded at 130 yuan / ton in June, and imported zinc traded at 16470 yuan 16530 yuan / ton in June, and imported zinc traded at 16610 yuan 16670 yuan per ton, and imported zinc traded at 16520 yuan 16590 yuan per ton. Shanghai Zinc 2006 contract concussion downward, the first trading session of the morning market closed at 16415 yuan / ton, with the end of the long order, today's spot market trading light, the morning market next month ticket mainstream transactions concentrated on the SMM net average price discount of 5 yuan / ton to flat, followed by quotation in the morning market for 2006 contracts up 150 yuan / ton. Entering the second period of time, the spot rally in the market began to decline, and the mainstream of the holders reported a rise of 140,145 yuan / ton for 2006 contracts. Spot prices fell slightly, and trading among traders was mediocre. Today, downstream purchases on demand, the overall trading is still good.

Guangdong Zinc mainstream traded at 16390 RMB16490 / ton, and the quotation concentrated on the price of 100RMB130 / ton for the contract of Zinc 2007 in Shanghai, and the discount on the Guangdong market was RMB150RMB / ton lower than that of the previous trading day, which was 20 yuan lower than that of the previous trading day. In the first trading session, Guangdong's arrival volume is still relatively small, market inventory continues to decline, holders are still mainly shipping at positive prices, individual traders are also active in purchasing, and downstream is just in need of purchasing. Kirin quoted a price of 120 yuan / ton for the July contract for zinc in Shanghai, while Tiefeng's water rose to 110 yuan / ton for Tiefeng. In the second trading session, the futures price spread widened between the current month and the next month, coupled with lower futures prices, holders further raised the level of water delivery, downstream bargain purchases slightly increased, traders in the face of rising water procurement enthusiasm declined. Kirin quotes the July contract for zinc in Shanghai to rise 120 RMB130 / ton and Tiefeng 120 RMB / tonne. Kirin and Tiefeng mainstream traded at 16390 RMB16490 per ton.

The mainstream transaction of Ningbo Gao was 16500 Mel 16600 yuan / ton, and the price difference between Ningbo and Shanghai ordinary brands was narrowed from 20 yuan / ton to 10 yuan / ton. The price of ordinary brands in Ningbo increased to around 120 million yuan / ton for the 2006 contract, and the price difference between Ningbo and Shanghai ordinary brands narrowed from 20 yuan / ton yesterday to around 10 yuan / ton. Today, zinc prices remain weak and volatile, and traders in Ningbo market are trying to sell goods at a competitive price. In the first session of the morning, Tiefeng, Huize and Kirin reported a rise of 160 yuan per ton for the June contract, 140 yuan per ton for the June contract, and 220 yuan per ton for the July contract, which translates to 120 yuan per ton for the June contract. Near the end of the month, the downstream demand for next month tickets is less, the overall transaction situation is worse than yesterday, downstream enterprises are mainly wait-and-see, buying mood is not good.

Tin: spot market, quoted price of 136000won 138500 yuan / ton this morning, early Shanghai tin plate price is higher, some traders have purchases, downstream enterprises have fear of heights and buying interest is weak. The overall transaction atmosphere in the Shanghai-tin spot market is generally weak. For the Shanghai tin 2007 contract, the Yunxi rising water is around 5000 yuan / ton, the ordinary Yunzi rising water is around 4000 yuan / ton, and the small brand rising water is around 3000 yuan / ton.

Updating.

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