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[SMM afternoon Review] the Federal Reserve maintains a loose trend and the metal market continues to rise. Shanghai Zinc and Nickel rose more than 2%.
Jul 30,2020 11:53CST
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Source:SMM
The content below was translated by Tencent automatically for reference.

SMM7 March 30: non-ferrous plate rose generally in the morning, Shanghai zinc, Shanghai nickel rose more than 2%, Shanghai aluminum rose 1.94%, Shanghai lead rose 1.74%. In the early hours of this morning, the Fed left its benchmark interest rate unchanged in the range of 0% muri 0.25% and said it would use all tools to support the economy, in line with market expectations. The dollar index reappears weakness to support the metal market. Shanghai copper rose 0.23%, the macro mood warmed up, the center of gravity of copper prices continued to move up, although Sino-US relations tend to be tense to interfere with copper prices, but the liquidity remains abundant and the supply of copper mines is tight, copper prices are still on the strong side. Shanghai nickel rose 2.09%, analysts believe that the late market worry about Indonesian nickel iron supply is still heavy, but the impact of repeated hype may be limited before the expected bad is really realized. In the later period, as the new production capacity of Ferro nickel in Indonesia is put into production one after another, the supply of ferronickel in the fourth quarter may be in excess gradually, and the price of nickel may still bottom out again.

In terms of black, steel and iron ore rose slightly. The Ministry of Industry and Information Technology said that in the first half of the year, the iron and steel industry gradually got rid of the impact of the epidemic, resumed work and production in an orderly manner, and production and operation maintained a From January to June, China's apparent consumption of crude steel was 480.66 million tons, an increase of 3.8% over the same period last year. From the perspective of the downstream steel industry, compared with the first quarter, the new construction area of real estate, automobile production and ship output increased by 145.8%, 87.1% and 55.9% respectively in the second quarter, strongly supporting the growth of iron and steel production.

 

Crude oil rose 0.72% in the previous period. International oil prices fell on Thursday as global cases of novel coronavirus infection surged amid concerns that fuel demand was recovering or stagnant, while major oil-producing countries were preparing to increase production in August. Us crude oil futures fell 4 cents, or 0.1%, to $41.23 a barrel, while Brent crude futures fell 1 cent, or 0.02%, to $44.08 a barrel. The two benchmark contracts rose sharply after the US Energy Information Administration ((EIA)) announced on Wednesday that US crude oil stocks unexpectedly fell by 10.6 million barrels last week and have been fluctuating ever since.

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Today's spot

Zinc: the mainstream transaction of Ningbo Bao is 18820-19040 yuan / ton, and the price difference between Ningbo and Shanghai ordinary brand is 10 yuan / ton compared with that of Shanghai. The price difference of ordinary brands in Ningbo is the same as that of ordinary brands in Shanghai. The price difference between Ningbo and Shanghai is the same as that of ordinary brands in Shanghai. Today, zinc prices fluctuated higher. In the first trading session, Tiefeng, Xikuang and Nanhua were trading around 100-110 yuan / ton for August contracts, Kirin 120-130 yuan / ton for August contracts, Huize newspaper around 150 yuan / ton for August contracts, Dongling newspaper around 160 yuan / ton for August contracts, and Harbin Zinc No. 1 for August water increases of about 40 yuan / ton. the strong zinc price market continued to be weak. Downstream enterprise orders did not improve, fear of high wait-and-see mood dominated, only rigid demand procurement contributed a small amount of transactions, today's Ningbo market turnover has not improved compared with yesterday.

The mainstream turnover of zinc in Guangdong is 18680-18870 yuan / ton, and the quotation is concentrated on a discount of 30-45 yuan / ton to the Shanghai zinc 2009 contract, and the discount in the Guangdong market is 10 yuan / ton higher than that of the previous trading day. The first trading session, zinc home high strong shock, downstream procurement demand is even worse, holders continue to lower rising water prices, it is still difficult to boost downstream transactions, Kirin, Mengzi, Huize, Tiefeng quotes for Shanghai zinc September contract discount 30-40 yuan / ton. In the second trading session, the center of gravity of futures prices moved further upward, downstream demand still did not improve, traders were relatively positive in receiving goods at discounts, and most of the market transactions were contributed by traders. Kirin, Mengzi, Huize and Tiefeng offer a discount of 40-45 yuan per ton for the September contract of Shanghai zinc. Kirin, Mengzi, Huize mainstream transactions at 18680-18870 yuan / ton.

The mainstream trading of zinc ingots in Tianjin market was 18980-19140 yuan / ton, Zijin was traded at 19080-19190 yuan / ton, Huludao was quoted at 20320 yuan / ton, zinc common to 2008 contract was quoted around 180 yuan / ton to 250 yuan / ton, Zijin was quoted around 280,300 yuan / ton in August contract, and Tianjin stock market remained around 140yuan / ton compared with Shanghai stock market. Today, the price of zinc concussion in Shanghai is higher, and the spot market maintains the price of rising water. The price is relatively uniform. The ordinary brand Bering News quotes 210 yuan / ton for the 08 contract, Hongyi quotes 250 yuan / ton for the 08 contract, Chi Hong quotes 180-200 yuan / ton for the 08 contract, the high-priced brand Zijin quotes 280-300 yuan / ton for the August contract, and Baiyin quotes 140 yuan / ton for the 08 contract. The fourth Ring Road (delivered) quoted 100 yuan / ton of water for the 08 contract, and Ha Zn (including the depot) quoted 120 yuan / ton for the 08 contract. Today, zinc prices fluctuated higher, the first period of time, the refinery downgrade water delivery, but less volume, refinery shipments after the end of the refinery, traders re-bid shipments, which due to Hongye Zijin brand maintenance reduction in August, the lower volume of rising water is higher; downstream, the spot price increase is larger, downstream enterprises wait-and-see mood is stronger, some enterprises maintain rigid demand procurement. On the whole, the deal was mediocre today. Zinc ingots traded around 18890-18980 yuan / ton.

Tin: spot market, quoted price of 145000-149000 yuan / ton today. The center of gravity of tin noodles in Shanghai was lower than yesterday morning, and the net price fell 1000 yuan / ton. Spot prices have fallen, smelter transactions have improved slightly, but prices are still high, downstream willingness to purchase has not fully recovered. The trading atmosphere in the Shanghai tin spot market is general, slightly better than yesterday. Liter discount, for Shanghai tin 2010 contract set near Yunxi Pingshui, Yunzi paste around 500yuan / ton, small card sticker is 2000-2500 yuan / ton.

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