[SMM Metal Breakfast] Metal collective drop * 25000 tons of electrolytic aluminum storage * how is the heavy rain hitting the zinc refinery?

[overnight market] the demand is doubtful. The outer plate metal fell OPEC across the board or increased crude oil production and turned downwards.

[macro Prospect] European and American countries announce initial PMI values of Markit Manufacturing Industry in August

Today's focus

[SMM data: Shanghai-Xi-Yu accumulation warehouse obvious domestic electrolytic aluminum social inventory weekly accumulation warehouse 25000 tons to 762000 tons] on August 20, Shanghai-tin-Henan accumulation warehouse is obvious. SMM statistics domestic electrolytic aluminum social inventory weekly accumulation warehouse 25000 tons to 762000 tons. "check the details.

[ADC12 Price Daily Review: the rising prices of domestic low-priced goods and the rising demand at the high end are still waiting for an increase in demand.] at present, the stock of imported aluminum alloy ingots is decreasing, and the market hesitation mood has increased, but it is expected that imported aluminum alloy ingots will continue to be in stock until mid-September. It is expected that before the import of waste aluminum is liberalized, the high prices of Japanese buyers will gradually spread to the world, and high overseas prices will make it difficult for relevant traders to replenish goods overseas. in addition, the rise in domestic waste aluminum prices will drive up the costs of recycled aluminum enterprises, and domestic ADC12 prices may rise slightly.

SMM analysis: what is the situation of zinc refineries affected by heavy rain in some areas? Recently, some parts of the country have been affected by heavy rain, and the transportation and production of some smelters may be affected. SMM survey shows that enterprises in Shaanxi are basically unhindered, while some enterprises in Sichuan are affected. "check the details.

[SMM concern: a 42000kVA nickel pig iron furnace under the Indonesian Weda Bay project Youshan Nickel] according to the latest SMM research, a 42000kVA nickel pig iron RKEF furnace under Youshan Nickel in Indonesia's Weda bay Industrial Park has been officially ignited and will be ready for iron production by next Monday. It is expected that after stable production, the monthly output of one unit will be about 900 nickel tons. This line is the first production line of Youshan Nickel, after six furnaces have been put into production in Weda bay Industrial Park since February this year. Youshan Nickel is a Hong Kong subsidiary of Huawei Nickel and Yongqing Technology. Hengtong Asia joint venture is set up in Indonesia. In the shareholding structure of Huawei Nickel, 55% is held by Hongsheng International, a wholly-owned subsidiary of Shengtun Mining, and 45% is held by Huayou Holdings (Hong Kong) Co., Ltd.

SMM hot coil inventory: the increase and decline of hot rolling inventory is slightly higher than expected! According to SMM Steel, the total inventory of hot-rolled coil this week is 3.8999 million tons, compared with-0.86%, and + 14.23% compared with the same period last year. The total inventory of hot volumes has stopped rising and falling this week, which, from the point of view of the data, has passed on some relatively positive sentiment to the market. The decline in hot-volume inventories this week has boosted market confidence to some extent, but the supply side remains wary of risks. According to SMM research, since the end of August, a number of steel mills have carried out inspection and repair of cold rolling lines, and the production of cold rolling has been reduced and the output of hot rolling has increased accordingly. The profit of superimposed hot rolling production is considerable, and the production enthusiasm of unoverhauled steel mills is high, so it is expected that the supply pressure of subsequent hot rolling is still large. "check the details.

[thread inventory report for the 3rd week of August: tired bank? To the library? Wavering, the potential of thread shock has not yet come to an end] as of August 20, the country's total inventory of building materials was 11.3046 million tons, a month-on-month ratio of + 1.3%, and a year-on-year increase of + 28.2%. This week, when terminal demand is suppressed by the weather and market sentiment is also hit by the macro "blow", more and more cautious, continue to accumulate the library, the early removal of the library seems to be only reminiscent. In the later stage, demand is still in the process of recovery, but under the disturbance of regional precipitation and high temperature, it is difficult to return to normal as quickly as the market expected. the recent fluctuation of inventory around the stock removal and accumulation also shows that it will take time for the fundamentals to support the healthy and sustained rise of spot prices. "check the details.

[MMi iron ore port spot index report (20th)] yesterday even iron weak shock, the port spot market early quotation basically maintained stability. The market continued to decline in the afternoon, and some merchants had slightly more room for bargaining, but it was still relatively limited. "check the details."

[stock market changes: president Xi inspects Maanshan Iron and Steel Company's stock price impact limit steel plate short-term pull] recently, General Secretary Xi Jinping inspected and investigated in Maanshan City, Anhui Province in the morning. He first came to the Xuejiawa Ecological Park to inspect the water regime of the Yangtze River, the comprehensive regulation of the coastline, and the protection and restoration of the ecological environment. Subsequently, Xi Jinping went to China Baowu Maanshan Iron and Steel Group and walked into the production workshop to learn about the resumption of work and operation of the enterprise. An hour before the close at noon yesterday, the iron and steel industry was pulled up in a straight line, and the shares of Maanshan Iron and Steel, Xining Special Steel, Bayi Iron and Steel and Liugang shot up rapidly. Among them, Maanshan Iron and Steel Co., Ltd. rose the most, with a short-term increase of nearly 12%. "check the details.

[SMM analysis: it is difficult for large overseas ingots to raise prices less than expected in the fourth quarter] since the second quarter of this year, exports of magnesium ingots have suffered great challenges due to the overseas epidemic. Domestic magnesium ingot factories and traders are facing a series of problems, such as reduced orders, blocked exports, price pressure, and so on. According to SMM, overseas traders have a close grasp of the domestic market situation, not only understand the domestic spot prices, but also very clear about the domestic market transactions, so the order price is under severe pressure. The decrease in overseas bidding volume in the fourth quarter has a great impact on the spot price of magnesium ingots in China, and the upstream factories also take a negative attitude towards the follow-up magnesium ingot price trend this year. Due to the lack of demand support, it is difficult to reduce production in the upper reaches, so it is not easy for magnesium prices to rise.

[SMM analysis: cobalt-related stocks are boosted by cobalt prices rising close to highs of the year, raw materials are tight to support September prices] boosted by major media reports on cobalt acquisition and storage, Hanrui Cobalt and Huayou Cobalt are leading the non-ferrous metal plate. By the close of trading yesterday, Hanrui Cobalt was up 3.24%, while Huayou Cobalt was up 3.05%. According to SMM research, industry insiders said that the news still needs to be treated cautiously, on the one hand, the early news has been digested by the market, on the other hand, the news has not been implemented. Although the city closure measures in South Africa have been further downgraded, it is understood that the actual operation and shipping schedule have not been significantly alleviated, and the shortage of domestic cobalt raw materials is expected to ease slightly, but at least in September, the inventory of cobalt raw materials in the smelter is still tight. "or support its quotation to continue to raise" check the details.

[SMM Daily Review: supply uncertainty remains strong in the short term] Metallurgical grade silicon prices were basically stable yesterday, while chemical grade silicon prices continued their upward trend. Transportation problems in Xinjiang and Sichuan still have a certain impact on supply, metallurgical grade low-grade silicon and chemical grade silicon are affected more obviously, and some downstream are worried about replenishing goods from other places, and silicon prices remain strong as a whole. Some export orders on the foreign trade side are still under negotiation, overseas demand is in the recovery stage to support the silicon price, and the short-term silicon price is mainly stable. "check the details."

[SMM topic: new energy battery leaders seize solid-state battery tuyere commercialization earlier than expected! According to the calculation of Bank of China Securities, the market potential of solid-state lithium battery is huge, and the global demand is expected to reach 1.7GWh, 44.2GWh and 494.9GWH respectively in 2020, 2025 and 2030, and the global market space is expected to reach more than 150 billion yuan in 2030. Many enterprises have focused on the forward-looking technology of solid-state battery, such as Toyota, BYD, Ningde era, Weilan New Energy and other new energy battery industry chain enterprises have laid out the solid-state battery market, looking for a breakthrough in the solid-state battery field. "check the details."

[SMM feature: August LPR once again leaves room for adjustment in the second half of the year.] the central bank released the August LPR interest rate quotation, which remained unchanged: the one-year interest rate was 3.85% and the five-year interest rate was 4.65%. Since the beginning of this year, both one-year and five-year LPR interest rate quotations have remained on hold for four months. The industry believes that the price of LPR will remain unchanged in August, in line with previous market expectations, and that the price of LPR has not been lowered, which does not mean that the downward trend of corporate lending rates has been blocked. At present, the new corporate loans issued by banks have fully turned to LPR pricing, that is, "corporate loan interest rate = LPR quotation + plus points". As a result, the direction of LPR quotation will inevitably have a direct impact on corporate loan interest rates.

Important news of metals and industry

[SMM visits Shandong Hengbang smelting Co., Ltd. to promote industry development] in order to deepen business cooperation with famous enterprises in the metal industry and provide more comprehensive data support, yesterday, Lu Jialong, vice president of SMM, Ye Jianhua, chief analyst of copper industry, Ma Yao, senior manager of copper department, and Zhu Wei, senior manager of small metals division, visited Shandong Hengbang smelting Co., Ltd. On the whole, the epidemic will affect the profitability of non-ferrous metal enterprises in 2020 to a certain extent. However, there are differences in risks among different fine molecular industries. Copper smelting costs will remain low for the whole year of 2020, and copper enterprises will face a certain downward pressure on profits. The two sides also conducted in-depth communication on the current situation of the small metal industry, as well as the development of Hengbang's small metal product line at the present stage and the progress of the later projects of high-purity arsenic and high-purity tellurium.

Antofagasta's revenue fell 15.3% in the first half of the year compared with the same period last year. Antofagasta released its interim financial report for 2020. During the reporting period, due to the impact of the epidemic, the company's copper production and selling prices declined, resulting in a 15.3% year-on-year decline in operating revenue to US $2.1388 billion and a 22.4% year-on-year decline in EBITDA to US $1.0128 billion. The interim dividend was 6.2cents per share, compared with 10.7cents in the same period last year; net debt fell 38.2 per cent year-on-year to $319.5 million; and capital expenditure rose 17.9 per cent year-on-year to $548.6 million.

[Minmetals Resources first-half revenue fell 14% year-on-year Las Bambas copper production decreased 29% year-on-year] Minmetals announced its interim financial results. In the first half of this year, due to the impact of the epidemic, the company's commodity prices and sales declined, and its operating income fell 14% year-on-year to $1.1914 billion. The net loss after tax was $182.7 million, an increase of 150% compared with the same period last year, and a net loss of $73 million after tax in the same period last year. Earnings before interest before tax and amortisation ((EBITDA)) fell 41 per cent year-on-year to $383.6 million, while net debt increased by $69.6 million as the epidemic affected the company's operating cash flow.

[Greenland government issues rare earth development license to Australian private companies] on Aug. 13, the Greenland government issued a license for the development of the Tambriz (Tanbreez) rare earth mine to an Australian company. The Tambriz rare earth mine is owned by a team led by Australian explorer Greg Barnes (Greg Barnes). The concession covers an area of 18 square kilometers and is located near the town of (Kujalleq) in Kuyarek in southern Greenland. The mining license will be issued for a period of 30 years. The Barnes team will have two years to prepare the development plan for the project. Tambriz is considered to be one of the largest heavy rare earth ores in the world. The content of radioactive elements is not high and the extraction method is simple.

[Hungary builds a global aluminum foil industry "lighthouse" factory] it is reported that (Lotte Aluminium), a subsidiary of South Korea's Rakuten Group, is investing in building a world's most advanced aluminum foil plant in Hungary, specializing in the production of electric and hybrid car battery foil, with a production capacity of about 30,000 tons per year, which is expected to be put into production in 2021. The project is the first large-scale high-end aluminum foil factory built in Europe in more than 40 years, with three high-end foil mills in Aherbach, Germany. All the equipment on the production line of the project is supplied by Ahenbach, which ensures high production efficiency and optimization of materials, and is easy to solve in the event of failure.

It is reported that the central bank and the Ministry of Housing and Construction will convene some real estate companies to conduct interviews in Beijing. As it is currently at a time when some real estate enterprises are issuing semi-annual reports, this may mean that they need to be cautious in terms of financial financing, leverage and so on. The relevant housing companies need to pay attention to such policy changes.

[Minsur: tin production fell 36 per cent in the second quarter compared with the same period last year] recently, Peruvian tin miner Minsur said in an announcement on August 19th that total tin production in the second quarter was 4021 tons, compared with 6283 tons in the same period last year, down 36 per cent. After three months of quarantine, the company reopened its San Rafael mine and Funsur smelter in Peru in mid-May, while its Pitinga mine in Brazil reopened on June 4 after plant maintenance. Minsur restarted its B2 tin tailings project in Peru on June 17, producing 9543 tons of tin in the first half of the year, down 17 percent from a year earlier.

[Blackstone: discovers a new nickel mine in the Ta Khoa nickel project in Vietnam] recently the, Blackstone (Blackstone Group) another nickel mine has been discovered in the Viper discovery area (The Viper Discovery Zone), 200m east of the Ban Chang exploration area in the Ta Khoa nickel-copper project in Vietnam. On-site inspection and shallow trench exploration found that a buried Gosang Mountain contains oxidized sulphide ore, and the buoy has a maximum grade of 0.8% nickel and 0.5% copper. VDZ (The Viper Discovery Zone) is a blind discovery, which indicates further blind discovery of the entire Ta Khoa Ni-Cu-PGE area and shows the potential of the project to accommodate more undiscovered nickel sulphide mineralization.

[Tianci Materials reported a net profit increase of more than 5 times to build an annual production of 100000 tons of electrolyte project in the Czech Republic] Tianci Materials notice said that the wholly-owned subsidiary Tianci Materials Czech Co., Ltd. plans to invest in the construction of an annual lithium battery electrolyte project (phase I). The total investment of the project is 275 million yuan, of which the construction investment is 195 million yuan and the working capital is 80 million yuan. The construction period of the project is 18 months. after the project reaches production, it is expected to achieve an average annual operating income of 1.1598 billion yuan and an average annual net profit of 177.1 million yuan. Tianzi material said that with the support of European countries for the new energy automobile industry, the industry expansion, the continuous development and growth of key customers in Europe, the capacity of its lithium-ion battery has also gradually increased, and the demand for electrolyte will be further released in the future. in order to achieve the "nearby supply" of key customers, achieve close to the end market, optimize transportation costs, and provide customers with quality services, the company plans to be located in the Czech Republic. Invest in the construction of a lithium battery electrolyte project with an annual capacity of 100000 tons (phase I).

[British lithium industry received 500000 pounds of government funding for lithium mining in hard rocks] British lithium industry company (BLL) has received 500000 pounds of government funding for research and development of lithium extraction from hard rocks. BLL claims to be the first company in the UK to mine lithium in hard rocks and so far the only company that has identified lithium resources in hard rocks. The company now aims to build a quarry and refinery in Cornwall to produce 20,000 tons of lithium carbonate a year.

[steel enterprises use iron ore basis trade to reduce costs] in recent years, iron ore basis pricing has gradually become the main way of trade. It is understood that CITIC Pacific Steel Trading Co., Ltd. (hereinafter referred to as Pacific Steel Trade) has gradually realized the risk management effect of basis pricing through continuous learning. This year, it cooperates with CITIC Metals Co., Ltd. (hereinafter referred to as CITIC Metals) to try to carry out basis trade. Citic Metals earlier began to use SGX iron ore swaps and DCE iron ore futures to lock in profits and avoid risks, and can provide diversified comprehensive management services to end customers. Citic Metal is one of the first traders in the industry to implement the spread price. "check the details."

Macro focus

[the Ministry of Commerce responds to the US revision of export control rules and the inclusion of 38 Huawei-related entities on the export control "entity list"] the US side has once again escalated its crackdown on Huawei, which the Chinese side firmly opposes. The United States uses its national power to generalize national security and constantly abuse export controls to suppress and contain specific enterprises of other countries.This is a serious damage to the rules of free trade and a serious threat to the security of the global industrial chain supply chain. it is also a serious damage to the well-being and interests of people of all countries, including the United States. The United States should immediately stop its erroneous practices. China will take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises.

[Commerce Department: China and the United States have agreed to hold a phone call in the near future] it is reported that the United States and China plan to reschedule trade talks postponed over the weekend, according to a person familiar with the matter. the purpose of the talks is to assess progress six months after the signing of the first phase of the trade agreement. It is said that although the date of the meeting has not yet been set, it will be held soon. Do you have any comment from the Ministry of Commerce? Gao Gao, spokesman for the Ministry of Commerce, said that the two sides have agreed to hold a phone call in the near future.

[Supreme Law: the upper limit of judicial protection of private lending interest rate is adjusted to 15.4%] on August 20, the Supreme people's Court issued the newly revised provisions of the Supreme people's Court on several issues concerning the Application of Law to the trial of Private Lending cases. Specifically, based on four times the quoted interest rate of 3.85% in the one-year loan market released on July 20, 2020, the upper limit of judicial protection for private lending rates has been adjusted to 15.4%, down significantly from 24% and 36% in the past.

[new institutional investors surged 85.71 per cent month-on-month in July to increase the living water effect of market funds] the latest data show that A shares added 2.4263 million investors in July, up 56.64 per cent from 1.549 million the previous month. Among them, non-natural persons increased by 3900 in July, an increase of 85.71 percent over the previous month.

[former Trump political adviser Bannon attended the hearing for the first time to apply for acquittal trial] Steve Bannon, former political adviser to US President Trump, attended the hearing for the first time and applied for an acquittal trial on the afternoon of the 20th local time, the Capitol Hill newspaper reported. According to previous media reports, Bannon and three others were arrested on suspicion of fund-raising fraud on the southern border wall project in the United States. after the first hearing, federal prosecutors said Bannon paid $500 million to be granted conditional bail. The day's hearing was conducted remotely by video, and the next pretrial hearing will be held on August 31.

Terminal information

[Lulai Automotive Battery Asset Company officially established BaaS battery rental service to be released] learned from the heavenly eye that Lulai Automotive Battery Asset Company has been established, the company name is Wuhan Ulergy Battery Asset Co., Ltd., the establishment time is August 18, 2020, the registered capital is 800 million yuan, the registered address is Wuhan Donghu New Technology Development Zone, and the legal representative is Shen Fei, vice president of Lulai Automobile Energy. Great progress has been made in the innovative business model of the separation of Weilai car and electricity. The company has completed all the product announcement and certification required for the separate sale of the whole vehicle and the power battery, and the first BaaS model vehicle has also completed the process verification of insurance, loan, licensing and so on. It is worth noting that the BaaS Weilai battery rental service will be officially launched in the afternoon of August 20, 2020.

[Desai Battery's first half revenue of 7.574 billion yuan accounts for about 90% of the revenue of consumer lithium battery products] on August 17, Desai Battery released its semi-annual report for 2020, showing that the company's revenue in the first half was 7.574 billion yuan, an increase of 3.35% over the same period last year. The net profit belonging to shareholders of listed companies was 174 million yuan, up 2.02% from the same period last year. Desai battery products are mainly used in consumer electronics products represented by smartphones, and about 90% of the company's operating income comes from consumer electronics lithium battery-related products.

[Chong Cang electrified and Intelligent General Motors will "increase the size of the Chinese Market]: on the evening of August 19, GM held its annual Science and Technology Outlook Day at the SAIC GM Pan Asia Automobile Technology Center. Once again put forward the" zero accident, zero emission, zero congestion "vision, and announced its future development strategy in the Chinese market. At the press conference, GM Chairman and CEO Mary Bora said that GM has taken a series of measures to transform the company in recent years, further improving the flexibility, agility and profitability of the business to strengthen investment in future travel, including more than $20 billion in capital and engineering resources for electric vehicles and self-driving projects between 2020 and 2025.

[long range is no longer the hard index "precision" and "replenishment" or key] since the development of electric vehicles, range has always been the focus of users, and long range has always been the goal pursued by car companies. as a result, the industry has also derived the word "endurance anxiety". By 2020, the long-lasting version of new energy vehicles will continue to be on the market. It is understood that the maximum mileage of the Xiaopeng P7 has exceeded 700km, and the long-range version of Tesla Model 3 and EC6 and other vehicles have also exceeded the 600km. A few days ago, Zeng Yuqun, chairman of Ningde Times, said that Ningde Times is developing a new technology to "fit" the core and chassis, abandon the original bulky shell of the battery system, and may enable electric vehicles to have a range of more than 800km. The technology is expected to be launched by 2030.

[changes in the car market in the post-epidemic era and thinking] with the gradual weakening of the impact of COVID-19 's epidemic situation and the return to normal operation of society, various industries have ushered in the "post-epidemic era". In terms of the automobile industry alone, although the market has recovered and warmed up during this period, car companies still face many tests due to factors such as the continued spread of the overseas epidemic and major changes in the world economy. More importantly, the epidemic has not only brought heavy blows and challenges to the car market, but also brought many new changes and thoughts. How to open a new game in the changing situation and how to achieve further breakthroughs and development have become the focus and discussion of enterprises. "check the details."

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