"[overnight market] the price of metal in the outer disk rose by more than 1%. Gold futures rose slightly to reach a two-week high.

"[macro outlook] focus on the employment of ADP in the United States in August and the monthly rate of durable goods orders in July in the United States.

Today's focus

The 12th meeting of the standing Committee of the 13th National people's Congress of the people's Republic of China adopted the Resource tax Law of the people's Republic of China at its 12th meeting on August 26th, 2019. The new tax Law will come into effect on September 1, 2020, and the interim regulations of the people's Republic of China on Resource tax promulgated by the State Council on December 25, 1993 shall be annulled at the same time. "View details

The Resource tax Law is implemented today. All the copper bosses care about is here! This resource tax legislation adheres to the framework of the current tax system and the overall level of tax burden remains unchanged, and generally speaking, the burden does not change much. However, in order to give full play to the role of resource tax in promoting resource conservation, the vast majority of resource products are taxed ad valorem. According to SMM, the detailed rules for the implementation of the interim regulations of the people's Republic of China on Resource tax, which came into effect on November 1, 2011, adopts ad valorem levy on copper ore, while the latest resource tax law adopts ad valorem levy on copper ore. "View details

[SMM special topic: the first half of the epidemic hit the car market lead-acid battery enterprises performance is mixed! In the first half of 2020, due to the impact of novel coronavirus's epidemic, the automotive industry was hit hard, resulting in a certain weakening of lead battery demand and a drag on the performance of storage enterprises. for example, Li Shi International's operating income in the first half of the year was 3.684 billion yuan, down 7.1% from the same period last year. Net profit was 25.16 million yuan, down more than 70% from the same period last year. Xiongtao shares' net profit belonging to shareholders of listed companies in the first half of the year was 31 million yuan, down more than 60% from the same period last year. But some lead-acid battery companies are still doing well in the countercurrent, such as Tian Neng Power, one of China's largest suppliers of power batteries for electric vehicles, whose first-half net profit rose 45.57% from a year earlier. "View details

[SMM monthly outlook: lead battery consumption season is not buoyant September lead price operation center of gravity further down] SMM believes that the increase in recycled lead in September may still exist, while the lead battery consumption peak season is not prosperous, the battery factory procurement demand is unlikely to increase, the overall oversupply trend is still there, the fundamentals are difficult to increase lead prices, but the price of waste batteries may become a support, lead prices are expected to maintain a volatile trend in the early September. However, the consumption of lead ingots in late September is not clear, and it is expected that the overall focus of lead prices in September will be further lower than that in August. "View details

[SMM analysis: Shanghai zinc rose more than 2% in the short term, looking toward the 21000 front line] SMM believes that the macro mood is optimistic, and the superimposed dollar index has fallen below 92, the lowest since May 2018. The weak trend of the US dollar has led to a rise in zinc prices. Today, zinc in Shanghai continued to pull higher, refreshing the new high of 20460 yuan / ton since May 2019. At present, the trend of zinc price is still strong, looking towards 21000 yuan / ton in the short term. "View details

[SMM monthly outlook: nickel market fundamentals are good and short-term prices are expected to fluctuate strongly] SMM believes that at present, the short-term fundamentals of nickel are good, and in the long run, it is also better than originally expected; in the third quarter, 300 series stainless steel high output assist high nickel pig iron has changed from leftover to deficiency, and in the fourth quarter or tight balance, the excess range is less than originally expected, so some nickel market fundamentals of nickel pig iron are good. In terms of pure nickel, although consumption is not good, the decrease in domestic spot nickel imports adjusts the market to a certain extent, so that the domestic social inventory is basically balanced and the market performance is relatively stable. SMM believes that the price is too strong and volatile in the short term. It is expected that this week Shanghai nickel will be 118000-125000 yuan / ton and Lunni will be 15000-15800 US dollars / ton. However, the role of the news in the face of fundamentals is limited, and there is a short-term technical pullback in the later stage, but after consolidating the support below, it still maintains a multi-momentum. "View details

The tax rates on raw ore and mineral processing of nickel enterprises remain unchanged! What impact will it have after the implementation of the Resource tax Law] in the new resource tax law, the floating tax rate on domestic nickel mines as a whole is 2% Mur10%, while according to SMM, the areas where the relevant domestic nickel mines are located, Gansu raw ore or mineral processing is 4.0%, Xinjiang raw ore or mineral processing is 4.0%, Liaoning raw ore or mineral processing is 2%, Qinghai raw ore is 6%, mineral processing is 5%. The above four regions are consistent with the resource tax rates announced in the 2016 Circular on comprehensively promoting the Reform of Resource tax. "View details

[SMM brief Review: in view of the impact of the epidemic on construction machinery, etc., the United States will take more measures to import steel from Mexico and Brazil.] according to the Office of the United States Trade Representative, the United States will take additional measures to solve the problem of steel imports from Mexico and Brazil. The U.S. government will continue to exempt certain steel imports from Mexico and plans to hold more negotiations in December. According to a previous announcement, in view of the downturn in the US steel market, the US government announced a reduction in the quota of semi-finished steel imports from Brazil. Brazil's quota for semi-finished products in 2020 will be reduced from 350000 tons to 60, 000 tons, the Office of the United States Trade Representative said in a statement on Monday. Other steel products maintain existing quotas and plan to discuss steel import quotas for 2021 with Brazil in December. "View details

[brief comment on SMM: the total suspension of production of Yangjiang medium frequency furnace equipment and the removal of 400 series stainless steel] according to recent reports, according to the requirements of document No. 169of Yangfu letter [2020], it is required that the comprehensive and thorough cleaning and elimination of medium (industrial) frequency furnaces and related equipment in stainless steel belt enterprises in the region must be completely cleaned and eliminated by August 30th, 2020, and the medium (industrial) frequency furnaces and related equipment must be completely dismantled. Yangjiang medium frequency furnace equipment began to be dismantled in September. According to SMM research, the annual production of stainless steel in Yangjiang area is about 300000 tons, of which more than 80 percent are 400 series stainless steel, and 300 series accounts for relatively small. After all production is stopped, the impact of 300 series is about 30, 000 tons per year, and the market impact is relatively small. "View details

[the mineral processing tax rate on heavy rare earths in the Resource tax Law has been reduced to 20%] starting from September 1, 2020, the Resource tax Law of the people's Republic of China has been formally implemented. At the same time, the interim regulations of the people's Republic of China on Resource tax promulgated by the State Council on December 25, 1993 were repealed. In the resource tax law, the fixed tax rate for medium and heavy rare earths is reduced from 27% to 20%, while the floating tax rate for light rare earths is 7%, 12%, and the specific tax rate is determined by the people's government at the provincial level. Among them, Baotou mine tax rate is 11.5%, Sichuan mine is 9.5%, Shandong mine is 7.5%. "View details

SMM hot roll arrival report: when will the market supply be relatively stable and fluctuate to the end of the "bald" market? Mainstream market resources are expected to arrive at 248000 tons this week, an increase of 6000 tons over last week. Recently, the hot coil output has basically remained stable, and the market arrival volume is also relatively stable. "View details

Semi-annual report of metal enterprises

[Societe Generale Mining's first-half net profit fell 135.58% compared with the same period last year] recently, Inner Mongolia Xingye Mining Co., Ltd. released its semi-annual report for 2020. During the reporting period, the company achieved an operating income of 235.8736 million yuan, a decrease of 30.16% over the same period last year; a total profit of-231.0536 million yuan, a decrease of 160.85% over the same period last year; and a net profit of-183.8538 million yuan belonging to shareholders of listed companies, a decrease of 135.58% over the same period last year. The company's operating performance declined compared with the same period last year, mainly due to the delayed resumption of work by the company and its subsidiaries, resulting in a decrease in the production and sales of the company's main products compared with the same period last year. "View details

[Chihong zinc and germanium production exceeded the standard by 8.261 billion yuan in the first half of the year] recently, Yunnan Chihong Zinc and Germanium Co., Ltd. released its semi-annual report for 2020. During the reporting period, the operating income in the first half of 2020 was 8.261 billion yuan, down 15.21% from the same period last year; the net profit of shareholders belonging to listed companies was 369 million yuan, down 47.08% from the same period last year. "View details

Important news of metals and industry

[Yulong Copper Mine Reconstruction and extension Project Noma Nonggou tailings Reservoir initial Dam successfully closed] on the afternoon of August 23, the initial dam of the Yulong Copper Mine Reconstruction and extension Project, which lasted 509 days, was successfully capped, marking the solution of the "bottleneck" problem restricting the progress of the Nuomalonggou tailings dam project, and a solid step for the timely commissioning of the Yulong Copper Mine reconstruction and expansion project. The initial dam construction of Nuomalonggou tailing reservoir can be divided into groundwater diversion layer construction and dam body filling. Four groundwater diversion pipes are arranged at the bottom of the dam, and a gravel guide layer is laid at the upper part of the dam. Two seepage collection pipes are arranged horizontally at the elevation of 4372m, and four seepage pipes are arranged longitudinally. "View details

[Yunnan Aluminum Yixin Hydropower and Aluminum Project passed Special acceptance] on August 28, 9 experts from five acceptance units in Heqing County planned the special acceptance of the company's green low-carbon hydropower and aluminum processing integrated Heqing project. After examination, the acceptance group agreed that the company's total building area, volume ratio, building density and green space rate met the requirements of land use planning and approval plan, and agreed to pass the acceptance. Zhao Gang, deputy general manager of the company, surveying and mapping units and related personnel attended. "View details

[Nanning accelerates the implementation of the "High-end High-precision Aluminum Heat treatment equipment Project". From August 25, 2020 to August 26, 2020, the Nanning Municipal Bureau of Industry and Information Technology organized a liaison and promotion meeting on the "2019 High-end High-precision Aluminum Heat treatment equipment Project". The complete set of high-end high-precision aluminum heat treatment equipment project is a national high-quality development key special project, which is led by Nanning Industry and Information Bureau to promote the implementation of Guangxi Nannan Aluminum processing Co., Ltd. in cooperation with Northeast University and Guangxi Advanced Aluminum processing Innovation Center. Give full play to the advantages of "politics, production, learning, research, application and gold" platform to solve the key technical problems existing in the development of domestic high-quality aluminum alloy plates, strips and profiles in the development of complete sets of equipment for profile heat treatment production lines, and fill in the domestic blank. Reach the domestic and international advanced level, and reduce the manufacturing cost of high-end high-precision aluminum alloy, and realize the independent control of the major short board production line. "View details

[Qingdao medium range: the company will gradually mine and sell its nickel ore in the future] Qingdao medium distance said that the owner of the RKEF nickel smelting project in Qingdao Indonesia Comprehensive Industrial Park is PT.. Metal Smeltindo Selaras . The company is the EPC general contractor for the RKEF nickel smelting project, which strictly complies with the relevant requirements and laws and regulations of the Indonesian government during the construction of the project. The company holds nickel ore exploration rights, mining rights and other related procedures are complete, in the future the company will gradually carry out mining, sales of nickel ore, and further develop mineral related business. "View details

[Dongfang Special Steel's annual capacity of 120000 tons of stainless steel plate technical renovation project successfully completed acceptance] on August 31, Dongfang Special Steel annual capacity of 120000 tons of stainless steel plate technical renovation project successfully completed acceptance. This indicates that the project has reached the capacity of design and production, and effectively consolidated the group's unique and differentiated competitive advantage in the field of stainless steel. Group Chairman and President Zhang Yuqiang, Vice Presidents Wang Yuan, Zhang Jiankan and Liu Xiaoya attended the project completion acceptance report meeting. Shao Panfeng, deputy secretary of the Nanhu District CPC Committee and district mayor, was present for guidance. "View details

[southern rare earths announce the latest rare earth oxide listing price gadolinium oxide price is reduced by 4000 yuan / ton] China Southern rare Earth Group Southern rare Earth International Trading Co., Ltd. announced the latest listing price of medium and heavy rare earth oxides, and the prices of individual rare earth oxides have been adjusted. In terms of price changes, gadolinium oxide is listed at 183000 yuan / ton, down 4000 yuan / ton compared with the previous period. The prices of other varieties are the same as the previous period, including samarium oxide 12000 yuan / ton, europium oxide 300000 yuan / ton, terbium oxide 4.95 million yuan / ton, dysprosium oxide 1.95 million yuan / ton, holmium oxide 435000 yuan / ton, erbium oxide 170000 yuan / ton, ytterbium oxide 100000 yuan / ton, lutetium oxide 4.75 million yuan / ton, yttrium oxide 22000 yuan / ton. Scandium oxide is listed at 9 million yuan / ton.

[groundwater process supervision and terminal treatment measures in rare earth mines have been successfully demonstrated by experts] on August 30, 2020, Ganzhou rare Earth Mining Co., Ltd. organized the "Evaluation report on the effect of groundwater process Supervision and Terminal treatment measures in the Longnan Huangsha and Dingnan Egongkeng basins of Ganzhou rare Earth Mine" and the "Construction Plan of groundwater pollution Prevention and Control measures for the Ganzhou rare Earth Mine Integration Project (Phase I)". According to the meeting, The technology of groundwater process supervision and terminal treatment measures is basically feasible. The construction plan of the first phase of integrated groundwater pollution prevention and control measures in the mining area is arranged scientifically, the process route is feasible, and the investment estimate is reasonable.

[Ningxia Tianyuan Manganese Group's announcement on Mine profit Sale] seriously affected by COVID-19 's epidemic situation, Ningxia Tianyuan Manganese Group conscientiously implemented the decision and deployment of "six stability" and "six guarantees" of the CPC Central Committee and the State Council. to help the manganese industry form a "new development pattern with domestic and international cycles as the main body and domestic and international cycles promote each other." Decided to adjust the sales price of (Consolidated Minerals Limited) Ghana Manganese Mine of United Mining Co., Ltd. Through mining profits, make every effort to maintain the stability of the industrial chain supply chain, keep warm together, tide over the difficulties together, and support the development of the real economy. "View details

[Taiyuan City will close the city's carbonization chamber height of 4.3 meters and clean heat recovery coke ovens before October 31.] Taiyuan City's "notice on completing the reduction and phase-out of coking capacity on schedule" pointed out that before October 31, 2020, shut down the city's carbonization chamber height of 4.3 meters and clean heat recovery coke ovens. The list involves a total of 8.6 million tons of coking capacity of coke enterprises, and a total of 12.5 million tons of coking capacity in Taiyuan City, of which 3.3 million tons of coking in Taiyuan Iron and Steel Company and 600000 tons of 5.5m coke ovens in Shanxi Xishan Coal Gasification Plant, a total of 3.9 million tons are not included in the phase-out range. in other words, after the coke enterprises completed the phase-out task on October 31st, Taiyuan retained only 3.9 million tons of coking capacity.

[all blast furnaces and rolling lines in the old plant of Tangshan Iron and Steel Co., Ltd. were shut down and relocated smoothly] it is understood that on the evening of August 31, the last 3200m ³blast furnace in the southern district of Tangshan Iron and Steel Co., together with two bar production lines and one section steel production line, was shut down, with a daily reduction of about 7300 tons of pig iron and about 6000 tons of thread. At this point, all blast furnaces and rolling lines in the old plant of Tangshan Iron and Steel Co., Ltd. have been shut down and relocated smoothly. At the same time, the 2050mm hot coil production line of Ligang was completed on August 6th and is still in the commissioning stage; subsequently, a 2922m ³blast furnace in the base of Ligang is scheduled to be put into production in mid-September, and the bar production line is scheduled to be put into production after October. SMM will continue to track the commissioning of the rest of the equipment.

[South Africa finalizes and levies taxes on imported screw and bolt products for three years] the International Trade Commission of South Africa made a final decision on the case of safeguard measures for imported screw and bolt products and decided to levy taxes for three years. The tax rates are: March 27, 2020-March 26, 2021, 54.04%; March 27, 2021-March 26, 2022, 52.04%; March 27, 2022-March 26, 2023 50.04%.

Macro focus

People's Bank of China: in August 2020, the people's Bank of China carried out standing loan facilitation operations for financial institutions totaling 950 million yuan, all for an one-month period. The standing lending convenience interest rate plays the role of the upper limit of the interest rate corridor, which is conducive to maintaining the smooth operation of money market interest rates. The balance of the standing loan facility at the end of the term is 950 million yuan.

Ministry of Foreign Affairs: state Councilor and Foreign Minister Wang Yi said that the 2025 Strategic Plan for China-EU Cooperation should be signed as soon as possible. The 2020 strategic plan is about to expire, and the two sides should make a new five-year cooperation plan to provide a blueprint and framework for China-EU dialogue and cooperation. It is necessary to strengthen cooperation in the digital economy, persist in opening up markets to each other, strengthen cooperation in the technology industry, and promote the formulation of global standards and rules in the digital field.

China Futures Industry Association: the trading volume of the national futures market increased in August compared with the previous month. On a unilateral basis, the turnover of the national futures market in that month was 551598975 lots, with a turnover of 45.967258 trillion yuan, an increase of 38.32% and 55.21% respectively over the same period last year, down 2.83% and 1.2% respectively from the previous month.

The United States Trade Representative has asked the United States International Trade Commission to investigate imports of blueberries and to negotiate with Mexico on the import of perishable products from Mexico.

Us: the final value of Markit manufacturing PMI in August was 53.1, and the initial value was 53.6; in August, the ISM manufacturing PMI was 56, compared with the previous value of 54.2. Us manufacturing activity accelerated to a more than one-and-a-half-year high in August as new orders surged but employment still lagged behind, supporting the view that the job market recovery had lost momentum.

Institutional comments on US ISM manufacturing PMI: US manufacturing activity accelerated to a more than one-and-a-half-year high in August as new orders surged, but employment still lagged behind, supporting the view that the job market recovery has lost momentum. The data showed that the US ISM manufacturing PMI rose to 56 in August, the highest level since January 2019. But the continued improvement in manufacturing has been uneven, with the COVID-19 pandemic leading to a shift in spending from equipment for service industries such as restaurants and bars to goods such as household appliances.

According to statistics from Johns Hopkins University, as of 17:33 Eastern time on September 1, the number of COVID-19 infection cases in the United States had reached 6068139 and the number of deaths had reached 184320. Between 17:33 local time on 31 August (6023368 confirmed cases and 183431 deaths) and 17:33 on 1 September (24 hours), there were 44771 new cases and 889 new deaths.

Terminal information

[Litong Electronics: plan to raise no more than 600 million yuan] Litong Electronics disclosed the pre-plan for a non-public offering, and the total amount of funds to be raised shall not exceed 600 million yuan. Used for Yiming 5 large screen LCD TV structure intelligent (automation) production line project, Mexico Tijuana annual production of 3 million large screen LCD TV precision metal structure project, Mexico Juarez annual production of 3 million large screen LCD TV precision metal structure project and supplementary liquidity. After the project is completed and put into production, the company's production capacity will further increase, form a more obvious scale advantage, and improve the intelligent level and production efficiency of the company's production line.

On September 1, the China Automobile Circulation Association released the latest issue of the "Automobile consumption Index": the automobile consumption index in August 2020 was 76.6, which was higher than that of the previous month. In September, the automobile market entered the peak season, superimposed by auto shows, new cars on the market, policies and other factors, car sales are expected to increase more.

[BYD Brazilian iron battery factory officially starts production of 18000 battery modules] BYD's lithium iron phosphate battery factory in Manaus, Brazil has been officially put into production, with an annual production capacity of 18000 battery modules. This is BYD's third factory in Brazil and the first lithium iron phosphate battery factory in Brazil, with an investment of about 15 million reais (US $2.7 million) and covers an area of 5000 square meters.

[Tesla production acceleration Model Y delivery time reduced to 2-4 weeks] Tesla's official website information shows that the delivery time of, Model Y models has been shortened from 4-6 weeks to 2-4 weeks. This means that North American customers will be able to receive their car orders by the end of the third quarter.

[manufacturing] Minister of Industry and Information Technology Xiao Yaqing: from August 30 to September 1, he investigated the development of large aircraft and aero-engines, integrated circuit technological innovation and industrial chain construction in Shanghai. It is stressed that it is necessary to speed up the pace of innovation and develop China's large aircraft, aero-engine and integrated circuit industries. It is necessary to give full play to the advantages of information technology and speed up the digital and intelligent transformation of the industry.

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