Home / Metal News / Precious Metals / [SMM Metal Breakfast] the ninth batch of scrap metal import quota announced * the operating rate of copper cable enterprises was 103.27% in June * the volume of Q3 batches of scrap aluminum remained unchanged from the previous month.
[SMM Metal Breakfast] the ninth batch of scrap metal import quota announced * the operating rate of copper cable enterprises was 103.27% in June * the volume of Q3 batches of scrap aluminum remained unchanged from the previous month.
Jul 8,2020 07:00CST
translation
Source:SMM
[SMM Metal Breakfast] the ninth batch of restricted scrap metal import quotas announced * the operating rate of copper cable enterprises in June was 103.27% * when will the import of recycled aluminum ingots be suspended * domestic refined zinc production decreased 5.77% in June compared with the same period last year. In June, the output of zinc from Guangdong decreased slightly compared with the previous month * lead positions in Shanghai remained high and warehouse delivery slowed down * supply fell back again and iron ore led to a rise in the black system.
The content below was translated by Tencent automatically for reference.

[overnight quotation] the epidemic situation is grim. Us stocks generally fell. Most of the outer disk metals rose. Lunzhong rose 0.86%.

[overnight quotation] the epidemic situation is grim. Us stocks generally fell. Most of the outer disk metals rose. Lunzhong rose 0.86%.

Today's focus

[important: announcement of the ninth batch of restricted scrap metal import quota] China solid waste Chemicals Management Network issued the ninth batch of restricted list in 2020, in which the total approved import volume of copper scrap is 176746 tons, and the approved import volume of aluminum scrap is 209660 tons. The approved import volume of scrap steel is 4990 tons. "check the details.

[SMM data: domestic refined zinc production decreased by 5.77% in June compared with the same period last year and 1.85% compared with the same period last year.] SMM China's refined zinc production in June 2020 was 465400 tons, 1.85% lower than the previous month or 8800 tons lower than the previous month, and 5.77% lower than the same period last year. From January to June, the total refined zinc production was 2.867 million tons, a cumulative growth rate of 4.57% over the same period last year. In June, the sample alloy output of domestic refining zinc smelters was 66129 tons, a decrease of 5.53% compared with the previous month. "check the details.

[SMM analysis: copper prices rise and fall in July from the historical probability] with the acceleration of the process of resuming work and production around the world, coupled with the flood of liquidity, copper prices continued the momentum of rebound in April and May rose sharply. The Shanghai Copper Index rose 10.86% in June, up 4770 yuan per ton, while LME rose 12.25%, up 659 US dollars per ton. European and American countries began to deregulate and resume work one after another in mid-May, and the economy improved in an all-round way in June, which is the main reason for the weak and strong families in Shanghai in June. So can the copper price continue the rebound momentum in July? this article will analyze it from the historical probability. "check the details."

[SMM analysis: the operating rate of copper cable enterprises was 103.27% in June. Large enterprises are still at full production.] according to a survey conducted by SMM, the operating rate of wire and cable enterprises in June was 103.27%, up 1.53% from the previous month, and 13.57% higher than the same period last year. The cable operating rate continued to rise month-on-month in June, continuing the hot market in May, especially large manufacturers said that although the number of orders has declined, there is still no shortage of orders, in a state of full capacity. Due to the centralization effect of the cable industry orders to the head enterprises, large enterprises can still maintain full-load production, thus driving the overall cable operating rate to remain at a high level. However, on the other hand, the operating rate of small cable companies surveyed by SMM was 65.16% in June, down 6.45% from the previous month. "check the details."

SMM analysis: when does the import of recycled aluminum ingots stop? Prior to this, the Ministry of Ecology and Environment, the Ministry of Commerce, the National Development and Reform Commission and the General Administration of Customs jointly issued notice No. 68 of 2018 on the adjustment of the Import waste Management Catalog, which transferred eight varieties of solid waste, such as scrap steel, copper scrap and aluminum scrap, from the catalogue of solid wastes that can be used as raw materials for unrestricted imports to the catalogue of solid wastes for which import restrictions can be used as raw materials. Effective as of July 1, 2019. However, this year, the new standard for waste aluminum, "recycled cast aluminum alloy raw materials", has not yet been implemented due to many factors, such as the tariff number, implementation process, and so on, so it has a limited impact on the domestic market in the short term. "check the details.

[SMM analysis: the volume of Q3 batches of traditional six types of waste aluminum is expected to be significantly lower than that of Q4.] on July 6, the closely watched volume of Q3 batches of traditional six types of waste aluminum was announced, even though the Ministry of Ecology and Environment said last week that the batch volume would be reduced in the second half of the year, some enterprises said to SMM that their batch volume had not decreased compared with Q2, and in terms of the published quantity, indeed for this reason, even a small number of enterprises also slightly increased. According to the approval data, the first batch of Q1 and Q2 waste aluminum accounts for about 95% of the quarterly batch. As the first batch of approval documents of Q3, batch 9 also represents the overall batch volume of waste aluminum of Q3. According to the data, the ninth batch of approvals contains a total of 54 enterprises, which is basically the same as the 53 enterprises in the first batch of fifth batch of Q2. "check the details.

[SMM analysis: the output of zinc from Guangdong in June decreased slightly from the previous month or changed little in July] the output of zinc ingots out of Guangdong warehouse decreased slightly in June, in line with expectations. Through our investigation, we know that the consumption margin in the lower reaches of June is weakening, especially in the Guangdong market, which is dominated by die-casting zinc alloy consumption, the overall demand is still weak. "check the details.

[SMM analysis: the delivery of warehouse orders in Shanghai lead positions remains high.] the trend of the Shanghai lead 2007 contract is strong, rising to 15020 yuan / ton at one point in the morning, and the contract base difference with the main 2008 contract widened to 400 yuan / ton. As of 15Rd 00, the Shanghai lead contract closed at 14905 yuan / ton in 2007, an increase of 0.34%. Its position was 8270 hands, a decrease of 675 hands. According to the calculation of the trading day, the Shanghai lead 2007 contract is only 6 trading days away from the delivery date, but its current position is still above 8, 000 hands. In terms of today's position, the volume of lead ingots that need to be delivered is 41350 tons. "check the details.

SMM hot volume: the regional strength pattern changes quietly how does the follow-up hot volume price change? The arrival of mainstream market resources this week is expected to be 151000 tons, an increase of 3000 tons over last week, and the increase is mainly reflected in Lecong market. The volume of goods affected by the price difference between the north and the south in Shanghai is still on the low side, and the recent arrival volume in Tianjin continues to maintain stability. "check the details.

[SMM Analysis: operating rate of Electric Furnace washed off by Rain] according to SMM research, as of July 7, the operating rate of independent electric arc furnace steel mills reached 73.24%, down 4.49% from the same period last week, and 11.52% lower than that of 84.76% in the same period in June. "check the details.

[SMM brief Review: iron ore supply fell again led by black] Iron ore rose sharply today, mainly due to the decline in shipments from Australia and Pakistan, imports tightened boost prices. According to SMM tracking data, a total of 93 ships arrived at eight major ports in China from June 28 to 7.4, with an estimated arrival volume of 15.79 million tons, a decrease of 400000 tons compared with the previous period. At present, the demand for steel downstream has not been released, and the consumption of finished products has been weakened by the rainy season in the south, coupled with the impact of production restrictions in Tangshan, iron ore is still at risk of falling. "check the details.

[SMM analysis: South Korea's Posco stainless steel production declined in the first quarter and metal manganese imports also decreased in the first half of the year.] recently, according to a report released by South Korea's Posco (POSCO), in the first quarter of 2020, South Korea's Posco's stainless steel production was 481000 tons, which decreased by about 3.4% and 4.4% respectively compared with the same period last month. According to SMM statistics, the total import volume of electrolytic manganese in Posco, South Korea, was 18600 tons in the first and second quarters of 2020, 10.74% lower than that of 21000 tons in the first and second quarters of last year. Affected by epidemic control and fire accidents at regional steel mills in the second quarter, it will have a slight impact on the production of Posco steel in South Korea. In addition, there is not much demand for steel at home and abroad this year, so profits and income on steel are visible.

[SMM analysis: lead battery giants open the road of lithium electricity under the tuyere of new energy vehicles] with the rapid development of the new energy vehicle industry and the expansion of the demand for lithium batteries, the production scale of lithium batteries in China has also increased. According to data, China produced 15.722 billion lithium-ion batteries in 2019, an increase of 12.40% over the same period last year. By the end of January to May 2020, China's lithium-ion battery production reached 5.5 billion, a cumulative decrease of 1.2%. According to SMM research, the total demand for lithium-ion batteries in China's new energy vehicle industry will reach 61.9GWH in 2019. Due to the impact of the new crown epidemic in 2020, GWH, reached 12.8 from January to May 2020 and decreased by 44.35% compared with the same period last year. "check the details.

Important news of metals and industry

[the Kakula copper project is expected to start production in the third quarter of 2021] Ivanhoe Mining of Canada said on Monday that its underground development of the Kakula copper mine was ahead of expectations and had now completed 5.1km ahead of schedule, totaling more than 17km. The Kakula copper mine is expected to be put into production in the third quarter of 2021. In June, the mining team completed an underground development of 1729 meters, 575m ahead of schedule for the month. Ivanhoe also said that Kakula's 2000-ton ore conveyor system began operation in June, which will further increase the speed of underground development of the mine. Underground development in the next few months will soon transition to high-grade mining areas.

[negotiations have entered a period of stagnation in Japan's quarterly aluminum price benchmark system has been shelved again] recently, the Japanese quarterly aluminum contract premium negotiations, which traditionally set the benchmark for trade in the Asian market, have come under pressure again because there have been no third-quarter negotiations at the end of the second quarter. Sources said the delay in settlement in the third quarter was mainly due to the large gap between the buying price and the selling price during most of the negotiations so far. Demand in Japan has been hit hard by the coronavirus pandemic, and many people are talking about canceling or reducing demand in the third quarter. "check the details."

Minfa Aluminum Co., Ltd. announced on the evening of July 6 that in the first half of 2020, the company achieved a net profit of 30.4718 million to 33.8576 million yuan belonging to shareholders of listed companies, an increase of 80 to 100 percent over the same period last year. The main reasons for the changes in the net profit expected to be attributed to the shareholders of the listed company are: 1, the operating income of industrial aluminum profiles, construction aluminum profiles and aluminum formwork increased compared with the same period last year, and profits increased accordingly; 2, the company strengthens internal management and pays attention to cost control to improve efficiency. 3. The company's non-recurrent profit and loss during the reporting period was about 5.96 million yuan, an increase of 287.07% over the same period last year, mainly due to the increase in government subsidies. The amount of government subsidies received during the reporting period was about 5.22 million yuan.

[free port second-quarter copper and gold sales are expected to exceed expectations] Freeport (Freeport-McMoRan) announced on Monday that it had exceeded its plan to meet several key performance indicators in its revised operating plan in April. Its second-quarter copper sales are expected to increase by 8% than expected (690 million pounds), gold sales are expected to increase by 10% than expected (165000 ounces), and EBITDA is expected to be about $650 million in the second quarter of this year. The Lone Star project in Arizona has been largely completed and is expected to start producing about 200m pounds of copper a year from the second half of 2020, Freeport said.

[trial operation of the first production line of the innovative metal annual output of 800000 tons of high-strength and high-toughness aluminum alloy project] on July 1, the first production line of the innovative metal annual output of 800000 tons of high-strength and high-toughness aluminum alloy project completed the preliminary commissioning and officially entered the trial production stage. It is understood that the construction of the project is planned to be completed in three phases this year, of which the first phase of the project will invest 200 million yuan and build new production workshops and other public auxiliary facilities of 187000 square meters; the second phase of the project will invest 300 million yuan to install 79 sets (sets) of major equipment such as tilting melting furnaces, crystallizers, homogenizing furnaces and dust collectors, and complete the construction and operation of five production lines. The third phase of the project invested 580 million yuan, installed 99 sets (sets) of tilting melting furnace, mould, homogenizing furnace, dust collector and other main equipment, completed the construction of 7 production lines and put into operation.

[Chinalco Group deepens cooperation with Guangxi Enterprises and Land] Chinalco Group is the largest and strongest leading enterprise in China's non-ferrous metals industry, with many unique advantages. Pingguo aluminum was built and developed under the direct care of Comrade Deng Xiaoping and has made important contributions to the development of Guangxi for more than 20 years. In recent years, with the sudden rise of the rare earth industry and the construction of the Huacheng project, Chinalco's business in Guangxi continues to grow. "check the details."

[MMi Iron Ore Port spot Index report (7th)] SMM tracking data show that a total of 93 ships arrived at eight major ports in China from June 28 to 7.4, and the incoming cargo volume is expected to be 15.79 million tons, a decrease of 400000 tons over the previous period and an increase of 1.95 million tons over the same period last year. "check the details.

A report by India's rating agency shows that due to weak domestic demand and COVID-19, the domestic steel industry has been affected by adverse factors over the past few months, despite low profit margins on exports to China, but still benefited from the growth of exports to China. Analysts believe that the growth rate of India's steel exports may slow in the next few quarters. Export prices fell slightly. Analysts further point out that the quality of export products is skewed towards low-margin products. Weak overseas demand will also slow export growth in the coming quarters.

Recently, during the critical period of promoting enterprise transformation and upgrading, Tangshan Iron and Steel Company of Hegang Group held a special meeting around the key work in the second half of the year, especially the work in all aspects involved in the process of location adjustment, emphasizing that all cadres and workers should always maintain a spirit of high-spirited progress, enterprising efforts, and never slack off. Go all out to do a good job in all kinds of work during the transitional period of location adjustment.

[development and Reform Commission: the trend of steel prices in July is expected to be stable and weak] according to a survey of the country's important steel wholesale market, the sales price expectation index and purchase price expectation index of the steel wholesale market in July were 43.8% and 50.9%, respectively, down 12.6 and 3.3 percentage points from the previous month, reflecting the cautious mentality of the market. Steel prices, especially sales prices, are expected to weaken in July. "check the details.

[Galaxy Resources's Sal de Vida lithium salt water project is still scheduled to start production in 2022] Galaxy Resources said on Tuesday that although the new crown epidemic affected the progress of the Sal de Vida lithium salt water project, early work is expected to be carried out in the second half of 2021 and the first phase of ore production is still expected to be achieved in 2022. , Galaxy Resources is expected to spend about $12 million on pilot, engineering, drilling and owner costs in the second half of 2020. The project will require a capital investment of US $474 million to produce about 25000 tons of battery-grade lithium carbonate and 95000 tons of potash over a 40-year mining life.

[Zhongke Sanhuan, a high-performance rare earth permanent magnet product, plans to raise no more than 720 million yuan] due to the needs of operation and business development, Beijing Zhongke Sanhuan Hi-Tech Co., Ltd. plans to raise no more than 720 million yuan by placing shares to the original shareholders, which will be used for the construction of fund-raising projects after deducting the issuance expenses. Ningbo Ke Ningda base new construction and technical renovation project plan to use 390 million yuan, China Science and Technology third Ring Road Ganzhou base new project plans to use 330 million yuan. "check the details."

Macro focus

[Xiao Gang, former chairman of the CSRC: the CPC Central Committee has never attached so much importance to the capital market as it is now] the reform of the capital market is facing three new situations. China's economy is changing from the stage of rapid growth to the stage of high-quality development, and the driving force of economic growth is from factor-driven in the past. debt-driven to innovation-driven, China's economy is going through a key stage of transformation, upgrading and structural optimization.

[Li Keqiang stressed during his inspection tour of Guizhou: increasing support for the construction of new infrastructure to provide support for the development of big data and other emerging industries] Premier Li Keqiang inspected Tongren and Guiyang in Guizhou from the 6th to the 7th. Li Keqiang listened to the report on the construction of "two new and one heavy" in Guizhou. He also visited the Tencent data center in Guiyang and urged the accompanying departments to increase support for the construction of new infrastructure to provide support for the development of emerging industries such as big data. Li Keqiang said: we must solve the financing problems of small and medium-sized and micro enterprises and science and technology enterprises, and help them develop. It is necessary to open up more room for manoeuvre in the western region through reform and opening up.

[China Foreign Exchange Investment Research Institute: it is difficult to define whether A shares are entering a bull market, but the medium-and long-term prospects are good] Jiang Weinan of the China Foreign Exchange Investment Research Institute said that it is difficult to define whether China's stock market enters a bull market at any time or the extent of its rise. in particular, the current surge is the stage of capital adaptation at the beginning of policy reform and emotional repression for a long time. Rising too fast is not optimistic or even implies short-term risks. It is expected that there may be a period of adjustment of space and time in the future to adapt to the market environment and return to rationality, but the medium-term may have a positive prospect.

Senior British and EU negotiators (a team led by Frost and Barnier) will dine at 10 Downing Street on Tuesday to kick off a new round of Brexit negotiations. At present, the negotiations are at a standstill because of differences. Senior EU officials said they hoped to reach an agreement, but "not at all costs". The agenda of bilateral negotiations was shortened last week, and although both sides expressed their desire to reach an agreement, they still faced a gap in their positions.

Terminal information

[Tesla plans to build a new factory in Asia or select Japan and South Korea] on July 6th, Tesla CEO Elon Musk (Elon Musk) said that the company plans to build another super factory in Asia outside China. When asked on Twitter whether Tesla plans to "build a superfactory in Asia outside China," Musk said yes, but he also pointed out that Tesla's top priority is to complete the construction of the superfactory in Berlin. In addition, Tesla will build another super factory in the United States to "serve the market in the eastern half of North America."

[Tianneng Co., Ltd. will focus on the development of lithium power battery business for electric light vehicles] on June 6, the listing Committee of the Shanghai Stock Exchange Co., Ltd. (hereinafter referred to as "Tianneng Co., Ltd.") issued a notice on the results of the review. (hereinafter referred to as "Tianneng shares") listing (IPO). Data show that on the evening of December 30, 2019, Tianneng Power announced that the listing of its Tianneng Co., Ltd. on the board has been accepted by the Shanghai Stock Exchange. IPO of Tianneng Co., Ltd. plans to raise 3.595 billion yuan for green intelligent manufacturing technology renovation project, high-energy power lithium battery cell and PACK project, etc.

[Penghui Energy: raising no more than 890 million yuan for the construction of lithium-ion battery project production capacity will reach the year of 2GWh/] Penghui Energy plans to issue convertible bonds to raise no more than 890 million yuan for Changzhou Lithium-ion Battery and system Intelligent Factory (Phase I) construction project, new high-performance lithium-ion battery R & D equipment purchase project and supplementary liquidity. The construction project of Changzhou Lithium Ion Battery and system Intelligent Factory (Phase I) is carried out by Changzhou Penghui, a wholly owned subsidiary of the company, with a construction period of 18 months (excluding commissioning and production phase). The construction content is to build the plant and production line of lithium-ion battery and system. After the completion of the project and its full capacity, the capacity of lithium-ion batteries and systems will be increased by 2GWh/ years (the raw materials of the system are self-made lithium-ion batteries).

[Slovak start-ups raise 10 million euros to produce customized batteries for electric vehicles] according to reports, InoBat Auto, a battery research and production company headquartered in Bratislava, Slovakia, has successfully raised 10 million euros (79.467 million yuan) in a round of financing led by infrastructure technology asset management companies IPM Group, CEZ Group, Wildcat Discovery Technologies and other investors. The move comes three months after the start-up received 5 million euros from the government.

[UK car sales fell 35 per cent year-on-year in June the slowest decline since February] new car sales in the UK hit 145377 in June, down 35 per cent from a year earlier, according to figures released by (SMMT), an association of British automakers and traders. UK car sales fell 44 per cent in March from a year earlier, plunged 97 per cent in April and 89 per cent in May. SMMT also said UK car sales fell nearly 50 per cent in the first half of this year compared with the same period last year.

Related market

[central bank: foreign exchange reserves of US $3.1123 trillion in June] increased by US $10.6 billion month-on-month; gold reserves were at 62.64 million ounces (about 1948.32 tons) at the end of June, unchanged from the previous month.

[investigation by the Ministry of Housing and Construction Shenzhen: hope that the property market will be stable] on July 4, Ni Hong, vice minister of housing and urban-rural development, went to Shenzhen for research and held a forum with real estate developers, including Shenzhen Housing and Construction Bureau, Vanke, and China Resources Land, as well as representatives of real estate agencies such as Shenzhen shellfish. "the main significance of this survey is to hope that the property market will be stable and contribute to the promotion of domestic demand, but we do not want to see a significant rise and speculation in the property market. After all, in addition to Shenzhen, housing prices in other cities are relatively stable, including Dongguan, where house prices are slightly rising, are also blocked in terms of policy. House prices are still falling in some places. " Li Yujia, chief researcher of Guangdong Housing Policy Research Center, said.

 

Iranian crude oil production fell to a nearly 40-year low in June due to falling exports and refinery cuts caused by a new crown virus pandemic, according to industry data. Meanwhile, Iran's total onshore crude stocks surged from 15 million barrels in January to 54 million barrels in April and further to 63 million barrels in June. It is estimated that Iran's average onshore crude oil reserves in June were about 66 million barrels, accounting for 85 per cent of total storage capacity.

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