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[SMM Metal Breakfast] the social inventory of lead ingots has increased nine times in a row * Thread output has peaked and the supply has finally loosened in Dashan.
Jul 13,2020 00:00CST
translation
Source:SMM
[SMM Metal Breakfast] the operating rate of enamelled wire industry dropped slightly in June * orders in air conditioning industry remained high * new orders downstream of aluminum weakened month on month in July * overall operating rate of profile enterprises maintained stability in June * social inventory of lead ingots increased nine times in a row * domestic general nickel producers have stopped production * thread output peaked and supply mountain finally loosened * electrolytic manganese demand support is weak * magnesium ingots are expected to continue in July. OK * the result of the vote of the workers in Chile's Zaldivar copper mine * Yahhua International and Galaxy Lithium renew the "off-take agreement" for lithium concentrate * the annual output of crude steel in the third blast furnace of Posco, South Korea is expected to increase by 25%.
The content below was translated by Tencent automatically for reference.

[overnight market] non-ferrous metals braved the wind and waves and Shanghai copper rose 2.83%.

"Today's Financial data Forecast: follow Federal Reserve Chairman Williams' speech on Libor

Today's focus

[SMM analysis: the operating rate of enamelled wire industry dropped slightly in June but generally not optimistic about July demand] according to SMM survey data, the operating rate of enamelled wire in June was 73.79%, which decreased slightly by 0.19% compared with the previous month, which was 0.32% higher than the expected 73.47%. Among them, the operating rate of large enterprises increased by 0.35% from a month earlier to 77.20%, while that of medium-sized enterprises fell by 1.66% to 68.10%. "View details

[SMM analysis: orders in the air-conditioning industry remain high. The operating rate of copper pipe enterprises rebounded in June compared with the previous month.] according to SMM survey data, the operating rate of copper pipe enterprises in June was 89.28%, up 5.9% from the previous month, and 2.90% higher than the same period last year. According to SMM research, the operating rate of copper pipe enterprises increased in June compared with the previous month, mainly due to the continuous repair of the demand of the terminal industry. "View details

[SMM Weekly Survey: new orders in the aluminum downstream are the first to bear the brunt compared with the weaker strip and cable industry in July] the start-up of leading enterprises downstream of aluminum this week increased slightly by 0.4% to 77.3%, mainly due to a small increase in the start-up of some primary alloy enterprises. However, in the hot weather in July, downstream wheel enterprises have the habit of high temperature holiday, this growth may be difficult to continue. Other downstream plates are relatively stable as a whole, including aluminum profiles, aluminum foil orders performance is better, most orders can still be scheduled to August. New orders for aluminum strip and cable weakened, scheduling and delivery time were shortened. The recycled aluminum industry is still mainly affected by imported aluminum alloy ingots, so it is difficult to recover significantly in the short term, and July is the traditional off-season. "View details

[SMM analysis: the average weighted operating rate of China's aluminum strip industry is 67.65% in June and is expected to continue to decline in July] the average weighted operating rate of China's aluminum strip industry in June was 67.65%, down 0.35% from the previous year, down 2.67% from last year, and is expected to drop slightly to 67% in July 2020. "View details

[SMM data: the overall operating rate of profile enterprises in June to maintain stability is relatively limited in the off-season] according to SMM research, the operating rate of aluminum profile enterprises was around 63.33% in June, up 0.03% from May. According to the scale of enterprises, the operating rate of large enterprises is 65.35%, that of medium-sized enterprises is 57.05%, and that of small enterprises is 51.17%. The start-up rate of enterprises of different sizes continues to differentiate, including a slight increase in the start-up ring of large-scale enterprises and a slight decline in the start-up of medium-sized enterprises. the start-up rate of small enterprises is larger than that of the same period last year, but the start-up of enterprises of all sizes is better than that of the same period last year. "View details

[SMM data: price advantage promotes nine consecutive increases in social inventory of lead ingots] according to SMM, as of Friday, the total inventory of lead ingots in the five places reached 36500 tons, an increase of more than 2700 tons over last week. "View details

[SMM data: July 10 SMM Seven zinc ingots social inventory] according to SMM, as of Friday, the total inventory of SMM seven zinc ingots was 212400 tons, down 4200 tons from last Friday and 5300 tons from Monday. "View details

[nickel mine inventories in all ports across the country decreased by 200000 wet tons to 7.878 million wet tons compared with last week] SMM July 10: nickel mine inventories in all ports across the country decreased by 200000 wet tons to 7.878 million wet tons compared with last week, with a total metal volume of 63800 tons, a decrease of 1700 nickel tons compared with July 3. Among them, the inventory of nickel mines in the country's seven major ports was 6.67 million tons, a decrease of 240000 tons compared with July 3.

[SMM tracking: domestic general nickel manufacturers have stopped production or will switch to this high-end nickel product? According to SMM, after Vale sold the assets of the New Caledonian Nickel project, its general nickel producer in Dalian, China, also lost its main source of raw materials and stopped production in July. At a later stage, whether the factory will switch to other products and the progress of the plan has yet to be announced by listed companies. It is rumored that it may be converted into a carbonyl (tang)-based nickel production line, which can be used in high-end applications such as electroplating, chemical reagents, metallurgy, aerospace and nuclear industry. "View details

SMM Steel Hot spot tracking: what is the impact of the Tangshan M5.1 earthquake on the steel market? Guye District is one of the main gathering areas of Tangshan steel mills, for this reason, SMM conducted a special survey of local steel mills. Local market participants said that as the local high-rise buildings are all earthquake resistant standards of magnitude 8 or above, the earthquake of magnitude 5.1 will not have any impact on buildings, the epicenter only a few old houses have cracks, there are no reports of casualties, the mood of the masses is stable, social order is normal, traffic and road conditions are good. SMM Steel will continue to follow up on the latest developments. "View details

[SMM thread: output peaked and supply Dashan finally loosened-SMM thread production report for July] according to SMM research, the actual thread output of blast furnace steel mills mainly producing building materials in July was 9.0654 million tons, which was 2% lower than that in June; and the reel production was 2.694 million tons, an increase of 0.67% over the previous month. In addition, before the global epidemic can not be effectively controlled, domestic steel prices are still high, and the export volume of building materials from steel mills only maintains the basic level, which is basically unchanged from last month. "View details

[electrolytic manganese weekly review (7.6mur7.10): electrolytic manganese demand support is weak short-term market price is difficult to rise] in July, the terminal demand for electrolytic manganese at home and abroad is light, manganese prices are difficult to improve, and it is expected to continue weak and stable operation next week. "View details

[SMM analysis: lack of confidence in the magnesium ingot market is expected to continue to decline in July. In July, since most of the downstream stock demand has been completed before the Dragon Boat Festival, and those who are not in a hurry to purchase take a wait-and-see attitude, the overall market transaction is weak, and the downstream price reduction is more serious, the downstream psychological price is generally low, the market demand is sluggish, the price is lack of support, and the price decline gradually, and the upstream factory is unable to passively reduce the price. There is a good possibility of shipping at a reduced price. "View details

Important news of metals and industry

[Chile Zaldivar copper mine workers vote on the ground! Chilean trade unions said Friday that 99% of the workers at the Zaldivar copper mine in Antofagastas rejected the collective wage agreement and decided to go on strike on July 15, which has yet to be regulated by the government. "View details

[Zambian copper production rose 3.85 per cent year on year to 342734 tons from January to May] Zambian copper production totaled 342734 tons from January to May, up 3.85 per cent from a year earlier, compared with 330024 tons in the same period last year, with higher copper prices and increased production of electric vehicles, the Zambian mining minister said Thursday. Copper production is expected to continue to rise in the second half of 2020.

[Japanese buyers set aluminum premium at US $79 / ton in the third quarter] four sources directly involved in the pricing negotiations said that Japanese aluminum buyers fixed aluminum premium at US $79 per tonne in the July-September quarter, down 3.7% from the previous quarter. Demand was hit by the new crown epidemic. Aluminium rose $82 a tonne in the April-June quarter, marking the fourth consecutive quarterly decline, the lowest level since the October-December 2016 quarter and below producers' initial offer of $85. Japan is the largest importer of aluminium in Asia, and the premium that Japanese buyers agree to pay each quarter on the spot price of (LME) on the London Metal Exchange has become an Asian pricing indicator.

In the first half of the year, when the price of zinc ingots continued to fall under the influence of the epidemic, all cadres and workers of Yunnan Copper and Zinc Industry carried out all kinds of work of preventing and controlling the epidemic at the same time, through measures to reduce costs and increase efficiency, strictly control various costs, guard against market risks, and do a solid job in production and operation, safety, environmental protection and quality. By the end of June, Yuntong Zinc Industry had achieved a combined profit of more than 7400 million yuan, 137% of the progress target and 68% of the annual target. The asset-liability ratio and cost-to-cost ratio indicators have achieved the annual target, and achieved good results of more than half of the time and more than half of the task. "View details

[SMM brief Review: South Korea will carry out anti-dumping on stainless steel from China and Indonesia in August] according to market news, South Korea will carry out anti-dumping on stainless steel imports from China and Indonesia from August. However, considering the continuation of the domestic industrial chain, immunity will be granted to some enterprises. According to SMM statistics, China exported about 430000 tons of stainless steel coil to South Korea in 2019, accounting for 12% of the total stainless steel exports. It is reported that another 20,000 to 30,000 tons of stainless steel from Aoyama in Indonesia are exported to South Korea.

[South African Minister updates the supply of chromium and manganese at the peak of the epidemic.] the latest outbreak forecast released by the South African government is about half a month ahead of the second forecast. Judging from the current public statement by the government and relevant reports from South Africa, it is less likely that the government will raise the blockade level again in or before mid-August to deal with the epidemic. But it is worrying whether the actual outbreak of infection in major ports and the shortage of beds will once again be a drag on transport and production efficiency across the country. According to relevant industry estimates, since the blockade level was lowered to level 3 in June, the efficiency of Port Elizabeth is still only 70% of what it was before the outbreak. "View details

[polysilicon supply tight prices continue to rise] this week, polysilicon market prices continue to show a slight rebound trend, including re-investment materials, single crystal densification materials, single crystal cauliflower, polycrystal non-washing materials prices have increased to varying degrees. Last week, the orders of individual silicon enterprises in July were all signed. This week, the new transaction prices of most polysilicon enterprises have risen slightly. On the one hand, due to the steady expansion and release of downstream silicon wafers, the demand is increasing day by day. On the other hand, the maintenance and maintenance of four 10,000-ton polysilicon enterprises have further reduced supply than expected, and the tight supply situation continues, so polysilicon prices continue to rise slightly this week.

[Ya Hua International and Galaxy Lithium Industry renew the "off-take agreement" for lithium concentrate with a supply of not less than 45000 tons in 2020] recently, Ya Hua International Investment and Development Co., Ltd. (hereinafter referred to as "Ya Hua International"), a wholly-owned subsidiary of Sichuan Ya Hua Industrial Group Co., Ltd. (hereinafter referred to as "Ya Hua International") and Galaxy Lithium Australia Co., Ltd. (hereinafter referred to as "Galaxy Lithium") renewed the off-take Agreement for the procurement of lithium concentrate, the contract term is extended for three years from January 1, 2018 to December 31, 2022. "View details

[Nanjing Xinwangda New Energy Project Phase I factory officially produces] High-quality orders are increasing, production capacity is accelerating, and the development of Xinwangda power battery business has entered the fast lane. On July 10, the mass production delivery ceremony of the first phase of Nanjing Xinwangda New Energy Project was solemnly held in Lishui District, Nanjing. It is understood that the Nanjing Xinwangda project has a total investment of 12 billion yuan, which is divided into three phases of construction, of which the first phase invests 3.5 billion yuan to build about 8GWh cell and 8GWh battery system production line project; the second phase plans to invest 4 billion yuan, the project will add 10GWh cell and 10GWh battery system production line; the third phase plans to invest 4.5 billion yuan, the project will add 12GWh battery and 12GWh battery system production line; after the project reaches production, it can form the production capacity of 30GWh cell and system respectively.

[Australia exported a record 46.2 million tons of iron ore to China in June] Australia's iron ore exports to China from Port Hedland, the world's largest export, climbed to a record 46.2 million tons in June, according to the Australian Port Authority. Shipments were up 7 per cent from 43.18 million tonnes in May and 10 per cent from the same month last year, according to the data. Port Hedland is used by three of Australia's four largest iron ore miners: BHP Billiton Group, Fortescue Metals and Gina Rinehart's Roy Hill. However, at the end of the Australian fiscal year this month and the opening of the annual routine maintenance, shipments in Australia and Brazil fell month-on-month.

[South Korea's Posco's third blast furnace resumes production of crude steel, which is expected to increase by 25%.] South Korea's Posco said it had restarted production at its third blast furnace, despite the global recession triggered by the new crown pneumonia epidemic. The third blast furnace had previously carried out maintenance work worth about 400 billion won (US $332.6 million). The maintenance increased the annual crude steel output of the third blast furnace by 25% to 4.6 million tons. The resumption of production of the blast furnace was delayed twice in May and June as the outbreak led to a decline in demand from carmakers, construction companies and shipbuilders. "View details

[Lingyuan Iron and Steel: the performance in the first half of 2020 is expected to decrease by 228 million yuan compared with the same period last year.] A few days ago, Lingyuan Iron and Steel Co., Ltd. issued an announcement that according to the preliminary calculation of the financial department, the net profit attributed to shareholders of listed companies in June 2020 is expected to decrease by 228 million yuan compared with the same period last year, or about 60.05% less than the same period last year. The main reason for the pre-reduction of the current performance: the main reason for the sharp decline in the company's performance in the first half of 2020 is the impact of the main business. "View details

Macro focus

Xu Xianchun, former deputy director of the National Bureau of Statistics: it is very important to achieve positive economic growth for the whole year. Xu Xianchun said at the mid-year report meeting of "Analysis and Forecast of China's Macroeconomic situation" in Shangcai 2020, "to achieve positive economic growth, there are two very important points: first, we should give full play to China's huge market advantages, promote consumption and investment to resume positive growth, and restore exports and imports. Second, it is necessary to give full play to the role of the new momentum of the new economy. " Xu Xianchun said: under the circumstances that the severity of the epidemic is not very different, the economic decline is different in different regions, and a very important factor is that the proportion of new momentum in the new economy is different. "the economic decline in regions with a high proportion of new momentum in the new economy is smaller, and vice versa."

[bancassurance Regulatory Commission: it is strictly forbidden for bancassurance institutions to illegally participate in over-the-counter capital allocation to strictly investigate the random addition of leverage and speculation] A spokesman for the Bancassurance Regulatory Commission said that supervise and guide the funds to "break away from the void into reality." We will carry out in-depth rectification of market chaos "looking back" and severely crack down on idling of funds and illegal arbitrage in accordance with the law. At present, it is particularly necessary to strengthen the supervision of capital flows, standardize cross-market capital exchanges and business cooperation, strictly prohibit banks and insurance institutions from illegally participating in over-the-counter capital allocation, strictly investigate the indiscriminate addition of leverage and speculation, and prevent the creation of asset bubbles. ensure that financial resources really flow to the areas and links that are most needed in the real economy.

Central bank: at the end of June, the balance of broad money (M2) was 213.49 trillion yuan, an increase of 11.1% over the same period last year, and the growth rate was the same as that at the end of last month and 2.6% higher than the same period last year; the balance of narrow money (M1) was 60.43 trillion yuan, an increase of 6.5% over the same period last year, 0.3% lower than at the end of last month and 2.1% higher than the same period last year; The balance of currency in circulation (M0) was 7.95 trillion yuan, an increase of 9.5% over the same period last year. The net cash input in the first half of the year was 227 billion yuan.

[Gates warned that the new crown vaccine should not be given to those who are high in price, but to those who really need it, otherwise the epidemic will last longer.] on July 11, Bill Gates said at the new coronal pneumonia online conference organized by the International AIDS Association that if the bidder has access to drugs and vaccines, rather than the people and regions that really need it, the epidemic will last longer, more unfair and more deadly. We need leaders to make difficult decisions based on rational distribution rather than market-driven.

[more than 3.22 million cases of new crown pneumonia in the United States] according to statistics from Johns Hopkins University in the United States, as of July 11, 1733 Eastern time, there were a total of 3228884 confirmed cases of new crown pneumonia in the United States, with a total of 134600 deaths. In the past 24 hours, there have been 65379 new confirmed cases and 753 new deaths in the United States.

Terminal information

[new crown clustering outbreak in Mercedes-Benz factory in Germany 20 employees tested positive for the virus.] on July 11, local time, a new confirmed case of coronary pneumonia occurred at a Mercedes-Benz factory in Dusseldorf, North Rhine-Westphalia, Germany. So far, 20 employees have tested positive for the virus, and another 50 employees at the factory are in quarantine.

Toyota: there has been a confirmed case of new crown pneumonia at the Miyata plant in Fukuoka prefecture in western Japan, and production line 1 is still closed.

[Tesla slashed the price of Model Y in the United States] Tesla's US website shows that the starting price of, Model Y has been reduced to less than $50000, and the current long-range version of Model Y starts at $49990, a reduction of $3000 from the previous version, which is a very big price reduction for models that only hit the market a few months ago. In addition, Tesla has updated its high-performance Model Y version, and whether or not the "performance pack" (Performance Package), is selected, Tesla will add several features: an increase in top speed from 145mph to 155mph and high-performance brakes. The current high-performance version of Model Y starts at just under $60000.

[ideal Motor has a financing target of US $100 million] on July 11, ideal Motor formally submitted a prospectus to the US Securities and Exchange Commission, planning to be listed on NASDAQ. The document shows that ideal Motor's listing stock symbol is "LI", with a financing target of $100m, and the underwriters of this IPO include well-known institutions such as CICC. "View details

[the first orderly charging pile in Xinjiang] an orderly charging pile for electric vehicles that can "independently and scientifically determine" the output power has been put into operation in Wujiaqu City, Xinjiang. This is the first orderly charging project in Xinjiang. Electric vehicles can be recharged in a more "smart" and economical way.

Related market

China Telecom: on July 11, 2020, China Telecom announced that the first phase of the Qingdao 5G smart grid project jointly developed by the National Network Qingdao Power supply Company, China Telecom Qingdao Branch and Huawei was officially put into production. This marks the official completion of the largest 5G smart grid in China.

[Shaanxi Indium Jie Semiconductor Co., Ltd., the opening ceremony of the indium phosphide semiconductor material industrialization project] on July 7, the opening ceremony of the indium phosphide semiconductor material industrialization project of Shaanxi Indium Jie Semiconductor Co., Ltd. was solemnly held in Tongchuan New material Industry Park. According to the Tongchuan New Materials Industrial Park Management Committee, the indium phosphide semiconductor material industrialization project, invested by Shaanxi Indium Jie Semiconductor Co., Ltd., is implemented in three phases, with a total investment of 760 million yuan and a first phase investment of 60 million yuan. It is used for equipment such as semiconductor material indium phosphide polycrystal production equipment system, pretreatment system, and public works. Build a hundred-level dust-free workshop, a ten-thousand-class dust-free workshop and a fully closed constant temperature and humidity standard workshop to ensure that the quality of the products can effectively meet the production requirements of semiconductor materials. The first phase of the project is expected to complete trial production in October this year and achieve annual production of 10000kg indium phosphide polycrystal products after reaching the production target in April 2021.

China Institute of Information and Communication: in June 2020, the domestic mobile phone market shipped 28.63 million units, down 16.6% from January to June last year. The domestic mobile phone market shipped a total of 153 million units, down 17.7% from the same period last year.

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