[SMM Metal Breakfast] Federal Reserve Chairman Colin Powell made a list of key points in his speech * it is difficult for Leiku to sustain mild aluminum prices * Shanghai lead has fallen for six days in a row.

[overnight quotation] the outer disk metal generally rose and Nickel fell alone, the Federal Reserve proposed a new strategy for the dollar to recover the 93 mark.

[macro outlook] pay attention to the final value of the consumer confidence index of the University of Michigan in August.

Today's focus

SMM analysis: what is the impact of the delay in the supply of recycled copper and aluminum raw materials and the application time for consignee qualification certification? The author thinks that it is reasonable to extend this time, because even if the qualification does not affect whether it can be imported, there is still a large number of applications in the face of such a large consignee base in China. In addition, overseas suppliers' applications and materials need a certain amount of time, and considering that the staff of the association is relatively limited, it is entirely reasonable to apply for an extension of time. I hope that friends will not over-interpret it. In addition to the extension of the application deadline, if there are a large number of applications from enterprises, with a limited staff, the actual 50-day review time for the review of enterprises will be relatively limited, especially if there are applications from overseas suppliers, the review time will be even longer, and the rate will probably be extended at the same time. At that time, I hope you will not over-interpret it. Generally speaking, the qualification certification does not directly affect the import of recycled copper and aluminum raw materials, Q4 domestic waste aluminum, scrap copper supply is still in short supply. "View details

[SMM analysis: July profile export increment is expected to continue to rise from August to August] according to customs statistics, the domestic export volume of aluminum profiles and bars in July 2020 was 78900 tons, a decrease of 12.80 percent over the same period last year. From January to July 2020, the cumulative export volume of aluminum profiles and bars was 469800 tons, a decrease of 22.84 percent over the same period last year. Aluminum profiles and bars involve five customs codes, including 76041010 (non-alloy aluminum bars and bars), 76041090 (non-alloy aluminum profiles and profiles), 76042100 (aluminum alloy hollow profiles), 76042910 (aluminum alloy bars and rods), 76042990 (other aluminum alloy profiles and profiles). "View details

[SMM brief Review: aluminum prices are not sustainable.] the short-term aluminum market has not yet come out of the traditional off-season, and it is difficult for aluminum prices to rise again in August. But now inventory is low and declining in the same period in previous years, and according to SMM understanding of aluminum profiles and aluminum plate strip and foil plate consumption to maintain stability, so there is no room for a sharp fall in aluminum prices in terms of fundamentals, as consumption recovers from September to October, it may be possible to go to the treasury twice, and aluminum prices are expected to be moderate and strong in the short term. "View details

[SMM analysis: spot price rises 100 yuan in three days, there is still room above Guangdong aluminum base spread] SMM A00 aluminum (Foshan) price on Thursday was 14830 yuan / ton, 140yuan / ton for Shanghai aluminum 2009 contract; Monday SMM A00 aluminum (Foshan) price was 14690 yuan / ton, and 40 yuan / ton for Shanghai aluminum 2009 contract. Guangdong base difference rose 100 yuan in three days, and spot water rose sharply in a short period of time. "View details

[SMM analysis: Shanghai lead fell for 6 days, profit loss of recycled lead 157yuan / ton concerned about cost line support] from a fundamental point of view, the upward force of lead price is insufficient, but the cost of recycled lead may form a certain resistance to its downward trend, and pay attention to the support of 15600 yuan / ton of recycled lead cost line. "View details

[SMM analysis: tin mine landslides contribute to the recent rise in tin prices.] Tin mine landslides affect supply, and mines that are expected to reduce 4500 metal tons in August, September and October this year are basically supported by rising tin prices. In addition, after the tin price jumped to 140000 in late July, it continued to stay above the 140000 mark, with strong support below the bottom failed to break, and it is expected that there is some room for rise above Shanghai tin. "View details

[SMM investigation: the flood caused the suspension of the Weda Bay nickel smelter in Indonesia and the resumption of operation now has little impact] according to SMM, the flood temporarily affected the operation of the smelter, and it has gradually resumed since yesterday afternoon. At present, the smelter is operating normally, and this incident has little impact on production. "View details

[SMM analysis: steel mill profits significantly narrowed blast furnace operating rate fell again] according to SMM research, blast furnace operating rate in the fourth week of August was 89.8%, down 0.4% from last week. Recently, the profitability of steel mills has obviously deteriorated, and the maintenance willingness of some steel mills has increased, leading to a slight weakening of blast furnace operating rate. "View details

SMM Hot Volume inventory report: supply increase! Inventory down! Is the hot volume terminal demand entering the peak season? Hot volume inventories continued their decline this week, giving a boost to the current weak market mentality. However, it has to be mentioned that in the case of considerable profits in hot rolling production and maintenance of cold rolling lines in some steel mills, corresponding to the increase in hot rolling output, the pressure at the supply end of subsequent hot rolling will continue to increase. On the demand side, the start of the current peak season is not as expected, so it is expected that spot prices will be under pressure in the short term. "View details

[SMM machinery terminal demand report: there is no doubt about the "steel needs" of both production and sales of excavators] the excavator is known as the "capital construction barometer", and its data this year are obviously stronger than in previous years, reflecting the "hot" of this year's infrastructure market. According to the mechanical samples surveyed by SMM Steel Terminal PMI in August, 36% of machinery enterprises increased their orders in August compared with July, 33% of machinery enterprises decreased in August compared with July, and 30% of machinery enterprises' orders in August were basically the same as in July. The slight decline in orders of some enterprises is mainly due to the impact of high temperature and off-season. Most construction machinery and infrastructure machinery enterprises said they expected the market to maintain a good momentum in the coming months. At present, the high production enthusiasm of machinery manufacturers has driven the demand for steel to a certain extent, and more importantly, the high prosperity of the machinery industry and the issuance of national special bonds to vigorously support infrastructure construction, the benefits of steel demand will be more obvious, there is no doubt about the "rigid demand". "View details

[the electric bicycle market is hot and the proportion of lithium battery applications may continue to increase by 15-20% next year] SMM expects that the output of electric bicycles this year will be basically the same as last year, but the proportion of lithium batteries will increase by 15% over last year and may continue to increase by 15-20% next year, so the demand for lithium batteries will continue to increase, and market segmentation will also bring opportunities for many battery companies. "View details

[SMM topic: two giants re-adopt! Lithium iron phosphate battery is expected to become popular again? Although the market share of lithium iron phosphate battery is far lower than that of ternary lithium battery, lithium phosphate battery will have a better development in the future with its own advantages. According to market research institutions, lithium iron phosphate is expected to surpass nickel cobalt manganate ternary batteries to become the dominant energy storage chemicals in the next decade, and will gradually occupy a dominant position in the field of electric vehicles after gaining a foothold in the energy storage market. "View details

[SMM topic: how to digest the 200000-ton order of magnitude that the decommissioned power battery tide is coming? With the arrival of the peak tide of power battery recycling and the continued rapid growth of production and sales of new energy vehicles, the scale of the retired power battery market will become larger and larger, as the business model of power battery recycling still needs to be continuously improved. power battery recycling industry will also become a new focus of the industry. "View details

[SMM analysis: July magnesium ingot exports continued to decrease magnesium alloy magnesium powder exports increased by 30% to 40%] in July 2020, China's total magnesium product exports were 20966 tons, an increase of 4.9% from the previous month and a decrease of 41.4% over the same period last year; July 2020, China's magnesium ingot exports were 10476.34 tons, down 11% from the previous month and 46% from the same period last year; in July, China's magnesium alloy exports were 5272.63 tons, an increase of 33% from the previous month and a decrease of 37% over the same period last year. In July, China's magnesium powder exports reached 3989.78 tons, an increase of 40 percent from the previous month and a decrease of 38.13 percent from the same period last year. "View details

Important news of metals and industry

The second round of central environmental protection inspectors will be divided into seven groups for one month! Recently, the second round of central eco-environmental protection inspectors will be launched in an all-round way, according to a notice issued by the Ministry of Ecology and Environment. Seven central eco-environmental protection supervision teams have been set up, headed by Zhang Baoshun, Jiao Huancheng, Geng Huichang, Huang Longyun, Jiang Jufeng, Li Jiaxiang and Yu Guangzhou, and deputy leaders Zhai Qing, Zhao Yingmin and Liu Hua, vice ministers of the Ministry of Ecology and Environment, respectively responsible for the three provinces (cities) of Beijing, Tianjin and Zhejiang. Two central enterprises, China Aluminum Group Co., Ltd., and China Building Materials Group Co., Ltd., carried out supervision work, and carried out supervision pilot projects in two departments of the State Energy Administration and the State Forestry and grassland Administration. The inspector has been stationed for about one month. "View details

[application for qualification of foreign suppliers and domestic consignees of recycled raw materials has been delayed! The recycled Metals Branch of China Nonferrous Metals Industry Association recently announced that it would postpone the application for qualification of foreign suppliers and domestic consignees of recycled copper and aluminum raw materials until December 31, 2020.

[mineral processing operations for the Pumpkin Hollow underground project under Nevada Copper resumed] Nevada Copper announced this week that mineral processing operations for the Pumpkin Hollow underground project had resumed. The concentrator reopened on Aug. 20 and currently has 160000 tons of ore waiting to be processed, according to an announcement on Monday. Evan Spencer, the company's chief executive, said in a statement that he was encouraged by the incident and that all employees had started work and would try to catch up with the progress that fell in the first quarter. The recovery plan will continue and progress will be disclosed in the coming months. The company also said that with the expansion of the plant, it has implemented a series of health and safety measures to protect workers from COVID-19 infection.

[Jingyi shares' first-half net profit fell by 74.87% compared with the same period last year, the revenue of the copper processing industry decreased by 34.35% compared with the same period last year] A few days ago, Jingyi shares released its 2020 mid-year report. during the reporting period, the company's total operating income was 2236020051.86 yuan, down 20.32% from the same period last year, and operating profit was 11114726.48 yuan, down 80.32% from the same period last year. Net profit was 11304035.73 yuan, down 74.87% from the same period last year. "View details

[Nanshan Aluminum: first-half net profit of 849 million yuan up 11% over the same period last year] on August 24, Nanshan Aluminum announced that its operating income in the first half of the year was 10.197 billion yuan, down 3.30% from the same period last year, and net profit was 849 million yuan, up 10.57% from the same period last year. Basic earnings per share is 0.07 yuan. During the reporting period, electrolytic aluminum prices plummeted in the first quarter and skyrocketed in the second quarter, exceeding market expectations.

[SMM data: the difference in inventory increase and decrease between regions highlights the weekly decrease of 7000 tons to 755000 tons in domestic electrolytic aluminum society.] on August 27th, the difference in inventory increase and decrease among regions was highlighted, with Shanghai and Nanhai contributing the main decline, while the weekly inventory of domestic electrolytic aluminum decreased slightly by 7000 tons to 755000 tons. On August 27th, the difference in inventory increase and decrease between regions was highlighted, with Shanghai and Nanhai contributing mainly to the decline, while the weekly inventory of domestic electrolytic aluminum decreased slightly by 7000 tons to 755000 tons. "View details

[Tibet's Qomolangma's first-half net profit plummeted by 6.27% compared with the same period last year. Zinc concentrate output dropped by 15.23%] recently, Tibet Qomolangma Resources Co., Ltd. released its semi-annual report for 2020. During the reporting period, the company achieved operating income of 708 million yuan, a decrease of 19.75% over the same period last year, mainly due to the decline in international market prices affected by the epidemic and the decrease in sales income of Tazhong Mining; the net profit belonging to shareholders of listed companies was 120 million yuan, down 65.46% from the same period last year. The metal volume of concentrate products reached 54700 tons, down 12.21 percent from 62300 tons in the same period last year, including 22200 tons of lead, down 6.27 percent from 23700 tons in the same period last year, and 31700 tons of zinc, down 15.23 percent from 37400 tons in the same period last year.

[floods cause Weda Bay in Indonesia to suspend operations of nickel smelters] (IWIP), the operator of the nickel smelter in Indonesia's Weda Bay Industrial Park, said it had stopped operations of the smelter because of the flood. The smelter is controlled by China Qingshan holding Group and France's Eramet. Part of the industrial park on Indonesia's Hama Hera island was flooded on Wednesday after two days of torrential rain, IWIP said in a statement. Weda Bay began operation in April this year with an annual output of 30000 tons. "View details

[Rio Tinto Exploration: acquiring an 80 per cent stake in ALX Nickel Project in Saskatchewan] on Monday, Canadian Rio Tinto exploration company (Rio Tinto Exploration Canada) said it had worked with ALX Resources Corp. Agreement was reached on the latter's nickel project, which is located about 20 kilometres north-west of (Stony Rapids) in Stoni La Pez. Under the deal, Rio could buy up to 80 per cent of the project. "View details

[Ningde Times first-half net profit fell 7.86% compared with the same period last year, lithium battery sales revenue dropped by 46.53% compared with the same period last year] today, Ningde Times New Energy Technology Co., Ltd. half-yearly report for 2020. During the reporting period, the operating income of Ningde Times was 18.829 billion yuan, down 7.08% from the same period last year, and the net profit attributed to shareholders of listed companies was 1.937 billion yuan, down 7.86% from the same period last year. Mainly due to the macroeconomic impact of the COVID-19 epidemic, a serious decline in market demand, resulting in a sharp decline in new energy vehicle production and sales compared with the same period last year, the company's power battery sales revenue decreased. "View details

[Xianglu tungsten industry's first-half net profit decreased by 63.76% compared with the same period last year, cemented carbide and precision cutting tools increased by 55.59% and 56.93% respectively] Xianglu tungsten industry recently released its 2020 interim report. During the reporting period, the company faced the complex and changeable situation at home and abroad. Efforts were made to consolidate the basic management of the enterprise, and various descendant companies and relevant functional departments made great efforts to reduce costs and increase efficiency, and strive to improve the company's profitability. The company achieved an operating income of 610.2027 million yuan, a decrease of 18.01% over the same period last year, a total profit of 11.4649 million yuan, a decrease of 75.17% over the same period last year, and a net profit of 13.9582 million yuan belonging to a listed company, a decrease of 63.76%. "View details

[Russian MMK Steel Mill says blast furnace workshop has produced 650 million tons of pig iron] Russian steelmaker Magnitogorsk Steel Plant (MMK) announced that its blast furnace workshop has produced 650 million tons of pig iron since the first blast furnace was put into production in 1932. According to a statement issued by the company on the 26th, MMK's blast furnace workshop, which consists of eight blast furnaces with an annual capacity of 10 million tons of pig iron, is the largest in Russia. The construction of the new No. 11 blast furnace will produce 3.7 million tons of pig iron, which will be another breakthrough in the production of MMK blast furnace. The furnace will be started in 2025. Install blast furnace gas filtration system and blast furnace slag granulation system. The furnace will be equipped with green technology such as local reverse circulation water supply system. MMK said the introduction of the new blast furnace would enable the plant to shut down three existing blast furnaces and reduce emissions by 6600 tons a year.

[tracking of the latest situation of production restriction in Tangshan Environmental Protection] according to SMM's current understanding, most of the steel mills affected are mainly limited sintering (sintering production limit is not particularly strong), and blast furnaces are little affected. Among them, 1080 of the blast furnaces of Rongcheng Iron and Steel and Jingan Iron and Steel stopped production because of recent routine maintenance. Tang Bru stopped 450 blast furnaces, mainly for routine annual inspection, which began in mid-August and is expected to stop until the middle of next month. At present, there is no shutdown of blast furnace production in other steel mills, and the follow-up SMM steel decline continues to follow.

Macro focus

[key points of Federal Reserve Chairman Colin Powell's speech] inflation target: it is hoped that inflation will grow by an average of 2% over a period of time, and no formula is provided to define the average inflation rate of 2%. Any excess inflation will be moderate; employment target: the downside risk of employment has increased, put employment before inflation, seek to ensure that employment will not fall below the maximum level, will not set employment targets; Federal interest rate: there will be a public review of policy strategies over the next five years, and the federal funds rate is likely to be constrained by the effective floor more frequently than in the past; in other areas: progress is being made on the main Street project; except in the areas affected by the epidemic, the economy remains healthy; the problem lies in the real economy, not the financial sector.

[5.85 million cases of COVID-19 in the United States] according to the epidemic statistics of novel coronavirus at Johns Hopkins University in the United States, as of 1729 Eastern time on the 27th, the number of confirmed novel coronavirus infection in the United States reached 5858857, and the death toll exceeded 180000 to 180494. In the past 24 hours, there have been 41657 new confirmed cases and 1150 new deaths in the United States.

[World Health Organization (WHO): it is very dangerous to allow the virus to spread to obtain mass immunity] World Health Organization (WHO) held COVID-19 's regular press conference on August 27th local time. Maria Van Kohof, technical director of World Health Organization (WHO) 's health emergency project, said: to obtain mass immunity, a certain population is required to be vaccinated, which makes it difficult for the virus to spread between humans. However, if the virus is allowed to spread, it is very dangerous to gain mass immunity naturally. A large number of people will be infected, and many people will need to be hospitalized or even die. Sumia Swaminathan, chief scientist of World Health Organization (WHO), says no infectious disease has ever been controlled by natural immunity.

[profits of Chinese industrial companies grew at the fastest pace in two years] China's industrial profits rose the most in more than two years in July due to improved market demand and lower production costs. Industrial profits rose 19.6% in July from a year earlier, the third consecutive month of growth, according to data released by the National Bureau of Statistics on Thursday. Profits from January to July fell 8.1% from a year earlier. The rebound in profits has been accompanied by a recovery in the value added of industrial enterprises since April. However, profits so far this year are still down from the same period last year as the epidemic caused a sharp decline in profits in the first quarter.

Terminal information

[China Automobile Association: the year-on-year decline in profits of the automobile industry from January to July this year has significantly narrowed] according to the data compiled by the China Association of Automobile Manufacturers, from January to July 2020, the year-on-year decline in profits of the automobile industry narrowed significantly compared with the first half of the year, and the signs of the industry's recovery are becoming more obvious. From January to July, the cumulative profits of the automobile industry totaled 251.45 billion yuan, down 5.9 percent from the same period last year, 14.8 percentage points lower than that in January-June, 17.3 percentage points lower than the same period last year, accounting for 8.1 percent of the total profits of industrial enterprises above scale, 0.5 percentage points higher than in January-June and roughly the same as in the same period. The profit of the automobile manufacturing industry narrowed compared with the same period last year, reflecting that the automobile industry is gradually getting rid of the haze of the epidemic, the production and marketing situation has picked up, and the demand for steel has released a bullish signal.

[Ministry of Communications: national fixed asset investment increased by more than 9.4% in the previous July by more than 20%] on August 27, the Ministry of Communications held a regular press conference for August online. From January to July this year, investment in transportation fixed assets reached 1.7957 trillion yuan, an increase of 9.4 percent over the same period last year, and the growth rate accelerated by 3.4 percent over the first half of this year. Of this total, 345.8 billion yuan was completed in July, an increase of 26.7% over the same period last year, and the growth rate was 6.4% faster than that in June. The investment in highways and waterways was 1.3537 trillion yuan, an increase of 12.1 percent over the same period last year, and 75.2 percent of the target of 1.8 trillion yuan for the whole year.

[Tesla occupies nearly 80 per cent of the US electric vehicle market share] according to the latest market research, Tesla currently occupies nearly 80 per cent of the market share of the US electric vehicle industry. Tesla's share price has surged more than 400 per cent so far this year, with a market capitalization of more than $400 billion, making it the world's largest car company by market capitalization. In 2019, the United States accounted for 20 percent of the world's total number of electric vehicles registered in use, ranking third in the world, after China and Europe, according to the International Energy Agency.

Tesla: maybe a cheaper hatchback electric model will be launched, which is designed to compete with Volkswagen ID.3 and Peugeot Emai 208. It is speculated that Tesla positioned the new hatchback as an entry-level model and limited the price to around 35000 euros in order to attract more potential buyers of similar models.

[South Korea's largest auto parts maker will expand electric car parts production] according to reports, (Hyundai Mobis Co.) of Hyundai Mobis, South Korea's largest auto parts maker, said on Wednesday that it would invest 36 billion won (US $30 million) to expand the production capacity of electric car parts. In addition to expanding the plant, Hyundai Mobis will invest more in developing chassis modules and smart cockpit systems not only for self-driving cars but also for all-electric models, the company said.

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