Home / Metal News / Precious Metals / [SMM Metal Breakfast] US stocks plummeted by nearly 5% * Hot roll inventory stopped falling to increase cash price or under pressure * Ternary material inventory pressure cobalt price slightly bearish
[SMM Metal Breakfast] US stocks plummeted by nearly 5% * Hot roll inventory stopped falling to increase cash price or under pressure * Ternary material inventory pressure cobalt price slightly bearish
Sep 4,2020 07:14CST
translation
Source:SMM
[SMM Metal Breakfast] Codelco July copper production decreased 4.4% year on year Escondida copper production increased 3.8% year on year * Regional differences continue to highlight domestic electrolytic aluminum social inventory accumulation of 6000 tons to 761000 tons * fundamental support tin price breaking pressure level encountered rail suppression technical correction * Hot coil inventory to increase spot prices may be under pressure * Ternary material inventory pressure Price slightly bearish * Ball announced plans to build an American beverage aluminum can plant to start in 2021 * Hebei iron and steel industry in August PMI of 52.5% of industry profits significantly increased
The content below was translated by Tencent automatically for reference.

"[overnight] Metal Plus Nickel fell 4%, Copper, Zinc and Tin fell more than 1%, US stocks fell slightly, and the Nasdaq tumbled nearly 5%.

"[macro outlook] focus on the nightly US non-farm payrolls report in August

Today's focus

[SMM Analysis: detailed explanation of the semi-Annual report of 13 Copper smelters in 2020] Statistics on their production plans for 2020 show that their production plans for 2020 totaled 7.1304 million tons, an increase of 307700 tons, or 4.5 percent, over the output of 19 years, and the growth rate has halved from 9 percent in previous years. Thus it can be seen that the peak of production of domestic smelters has passed, and the second peak may not come until the release of new capacity in Daye and Nanguo the year after next. By the end of June, the planned additional output of the above-mentioned smelters had reached 247800 tons, accounting for 80.53% of the total for the whole year, and it is expected that the new production will decrease significantly in the second half of the year. However, the half-year comprehensive completion rate is only 49.22%, and it is expected that in the second half of the year, smelters will moderately catch up with production in the context of slightly loose mine supply. Therefore, we expect that the increment in the second half of the year will be smaller than that in the first half, but the actual increment of the 13 listed smelters for the whole year may exceed the original plan of about 307700 tons. "View details

[Codelco copper production in July fell 4.4 per cent year on year Escondida copper production rose 3.8 per cent year on year] according to the Chilean Copper Commission (Cochilco), Chile's national copper (Codelco) copper production in July totaled 133300 tons, up 1 per cent from the previous month and down 4.4 per cent from a year earlier. Chile's national copper industry produced 131900 tons of copper in June. In the first seven months, Chile's national copper production increased by 2.3% compared with the same period last year. Copper production at mines such as El Teniente and Chuquicamata in northern Chile increased in July, while production at the Andida mine declined. "View details

[regional differences continue to highlight the weekly accumulation of domestic electrolytic aluminum inventory of 6000 tons to 761000 tons] on September 3, SMM counted domestic electrolytic aluminum social inventory (including SHFE warehouse receipts): 120000 tons in Shanghai, 24.1 tons in Wuxi, 81000 tons in Hangzhou, 82000 tons in Gongyi, 175000 tons in the South China Sea, 53000 tons in Tianjin, 6000 tons in Linyi, 3000 tons in Chongqing, The total inventory of aluminum ingots in the place of consumption is 761000 tons, with a weekly accumulation of 6000 tons to 761000 tons.

[USGS: June US primary aluminum production 89000 tons] according to USGS data, the United States produced 89000 tons of primary aluminum in June, with an average daily output of 2980 tons, down 3% from May and slightly lower than the same period last year. The output of aluminium scrap recycled in June was 249000 tonnes, up 4 per cent from the adjusted output in May and 15 per cent lower than the adjusted output in June 2019. Among them, 132000 tons are recycled from waste aluminum, and 117000 tons are recycled from waste aluminum. At the end of June, the inventory of aluminum in the LME US warehouse increased to 163558 tons, while the inventory of recycled aluminum (North American special aluminum alloy contract) fell to 35640 tons.

[SMM research: new technology helps the development of laterite nickel mine Meishan compliance nickel mine project] according to SMM, the output of nickel sulfate of Meishan adaptation Power Battery material Co., Ltd. is stable, and its raw materials are made of 100% waste. It has a laterite nickel mine project in the Philippines, and recently applied for a patent for the high pressure nitrate suan method together with Peking University of Science and Technology, and will use this method to make nickel laterite into intermediate products. It is expected that the mine will be put into production in the middle of next year, with an estimated output of 1000 nickel tons in the first year. The new nickel sulfate plant is estimated to be completed in early 2021. The raw materials for the production of nickel sulfate in the new plant will all use intermediate products made from our own mines. "View details

[SMM analysis: fundamental support tin price break pressure level meets track suppression technical correction] rainfall in Myanmar increased year-on-year, superimposed epidemic outbreak, tin imports are expected to be under pressure in the third quarter. The demand is improving, the output of downstream products is higher than the same period last year, and the demand for tin has a sustained and stable growth point. Tight supply and need to increase, basically in the face of tin prices have a strong support. "View details

[lithium battery concept stocks soar demand for battery-grade lithium carbonate gradually repair price will be strong] according to SMM research, the price of battery-grade lithium carbonate has been declining since mid-late March and remained stable in early July. as of September 3, the price of battery-grade lithium carbonate was 40, 000 yuan / ton, down 10250 yuan / ton from the highest level of 50250 yuan / ton since the beginning of the year. Looking forward to the future, SMM believes that the marginal demand downstream of battery-grade lithium carbonate will gradually repair, with the increase in procurement demand at the beginning of the month, large manufacturers will be in a tight state, and there is a strong willingness to raise prices, and the extent of price changes in the future still needs to be observed downstream acceptance. "View details

[SMM hot coil inventory report: hot coil inventory will not decline to increase spot prices may be under pressure] this week's total hot-rolled coil inventory of 3.9487 million tons, month-on-month + 2.06%, + 16.66% compared with the same period last year. According to SMM research, the operating rate of blast furnace in steel mills this week is 89.6%, which is basically the same as last week. In addition, the operating rate and production status of the hot rolling line of the steel mills also remained basically stable, prompting the hot rolling output to maintain a high and stable state this week. However, affected by the high price, the actual terminal digestion is not as good as expected, prompting the total inventory to accumulate this week. "View details

[SMM Iron and Steel]: the blast furnace operating rate in the first week of the month was 89.6%, down 0.2% from last week] according to the SMM survey, the blast furnace operating rate in the first week of September was 89.6%, down 0.2% from the previous week. Recently, the profitability of steel mills has obviously deteriorated, and the willingness of steel mills to overhaul has increased, leading to the continuous weakening of blast furnace operating rate.

[SMM: ternary material inventory pressure cobalt price slightly bearish] as the precursor and downstream pricing methods are more than the previous month average price, the nickel sulfate price increase will still be gradually transmitted to the downstream, the precursor price rise or slow. Ternary material enterprises have partial inventory, precursor prices are under pressure, and battery companies do not accept the previous increase in cobalt salt, which will also put pressure on the price increase of ternary materials.

[iron and Steel] China Iron and Steel Association: the operation of the national economy has maintained a stable recovery trend, steel demand has exceeded expectations, and iron and steel production is operating at a high level. From January to July, the cumulative national output of pig iron, crude steel and steel products was 510.86 million tons, 593.17 million tons and 723.95 million tons respectively, up 3.2%, 2.8% and 3.7% respectively over the same period last year.

Semi-annual report of metal enterprises

[Western Mining's first-half net profit fell 41% compared with the same period last year, the planned completion rate of lead concentrate is 108%] recently, Western Mining Co., Ltd. released its semi-annual report for 2020. During the reporting period, the operating income of the western mining industry was 13.4 billion yuan, down 11% from the same period last year, the total profit realized was 721 million yuan, down 22% from the same period last year, and the net profit was 557 million yuan, down 26% from the same period last year. Of this total, the net profit belonging to the shareholders of the parent company was 346 million yuan, down 41% from the same period last year. The main reason for the decline was that the average sales prices of the company's main products lead concentrate, zinc concentrate and copper concentrate fell by 19%, 25% and 5% respectively compared with the same period last year. "View details

[China Daye Nonferrous Metals] China Daye Nonferrous Metals released its first-half results. The company achieved an income of 12.055 billion yuan (the same as below), down 31% from the same period last year. The owner of the company should have a loss of 13.514 million yuan, compared with a net profit of 1.28 million yuan in the same period last year. The announcement said the decline in earnings was due to poor production and sales of the company's main products.

[0819.HK interim results bucked the trend and revenue data hit a new high] recently, Tianneng Power (Tian Neng Power) released its interim results for the first half of 2020. During the reporting period, Tianneng Power achieved sales revenue of about 22.635 billion yuan, an increase of 14.26 percent over the same period last year; gross profit of about 2.116 billion yuan, up 14.23 percent over the same period last year; and net profit of about 860 million yuan, an increase of 45.57 percent over the same period last year. Under the influence of the novel coronavirus epidemic in the first half of the year, it still maintained a steady development.

[rare earth leader Shenghe Resources was greatly affected by the epidemic, net profit fell 76.88% in the first half of the year compared with the same period last year.] recently, Shenghe Resources released its semi-annual report for 2020. According to the report, the total revenue of Shenghe Resources in the first half of the year reached 3.548 billion, down 7.35 percent from the same period last year, and the net profit was 41.9059 million yuan, down 76.88 percent from the same period last year. It can be seen that it is still difficult for the company to get rid of the impact of the epidemic and other factors in the first half of the year, and its performance has declined greatly. "View details

Important news of metals and industry

[Ivanhoe Mining: the underground development of the Kakoula Copper Mine is expected to be put into production in less than a year] it is reported that the underground development of the Ivankao Mining Kakoula Copper Mine has continued to advance, and so far, the underground development mark of more than 20 kilometers has been completed, 6 kilometers ahead of the planned target. The Kakoula Mine plans to produce its first concentrate in the third quarter of 2021 and is expected to become the world's highest-grade large copper mine. It is estimated that 3.8 million tons of ore can be produced annually in the first five years of production, and the copper grade may exceed 6 per cent. The company said it would release independently verified engineering and economic studies on the Camoa-Kakoula project in late September. "View details

[Su Aluminum Plate and Strip Factory successfully developed the aviation military 2A12, 7075 alloy plate production process] with the unremitting efforts of the technical research and development personnel, recently, the hot rolling workshop of Su Aluminum Aluminum Plate and Strip Plant together with the technical staff of the Technical quality Department has meticulously developed the aviation military 2A12, 7075 alloy plate production process, and the trial rolling is successful. The quality of the offline products has been approved by customers after on-line inspection. The successful research and development of alloy sheet production process provides a strong support for the product structure adjustment and sales market expansion of the plant.

Aluminum alloy curtain wall is very popular because of its excellent characteristics. Aluminum alloy has excellent surface properties and good plasticity, and its surface can be made into a mirror effect comparable to that of a mirror. it can also show rich and colorful colors and unique metal texture through anodizing and coloring processes, and can also create complex curved surface effects. Due to the excellent characteristics of aluminum alloy, many architects and designers will choose to use aluminum alloy in the building curtain wall, giving the building a new vitality and artistic form. At present, more and more museums, theatres and art galleries around the world use aluminum alloy to make curtain walls. "View details

Since the second half of the year, Chinalco Southwest Aluminum (Group) Co., Ltd. has been deployed in accordance with the mid-year work meeting of Chinalco Group, on the premise of continuing to do a good job in epidemic prevention and control, around the annual production and operation target, strive to open up the market, scientific and accurate production, and achieve a steady rise in production and management under adversity. After export output hit a 55-year high in July, Southwest Aluminium's export output rose 12.6% in August from a month earlier, up 32% from a year earlier, and a new record in a single month. Among them, the export output of group companies and business departments increased by 11.6% and 12.9% month-on-month. "View details

[Ball announces plans to start building a US aluminum beverage can plant in 2021] Ball recently announced plans to build a new American aluminum beverage packaging plant in Pennsylvania. The plant is scheduled to start production in mid-2021 and will create about 230 manufacturing jobs. Ball plans to make an initial investment of more than $300m in its Peterston plant over the years. The factory will provide customers with a range of canned products. "View details

[silver Nonferrous: lead and Zinc Plant exceeded production schedule in August] in August, the two systems of the lead and zinc plant were operated synchronously, with a total of 20263.195 tons of electric zinc, 1363 tons over the plan, 21503.415 tons of cathode zinc, 1203 tons more than the plan, 30436 tons of sulfuric acid, 412 tons of alloy zinc powder, 328 tons of blown zinc powder and 33 tons of crude cadmium.

[Brazil tightens security inspection rules for tailings dams and imposes high fines] the Brazilian Senate recently passed a bill to tighten security inspection rules for tailings dams in the mining industry and impose fines of up to 1 billion reais (US $187 million) for violations. Brazil has adopted legislation to strengthen its strict attitude towards the ban on upstream tailings dams in order to avoid a repeat of similar mining accidents in 2019. The latest bill also prohibits the construction of any tailings in downstream areas within 10 kilometers or 30 minutes of driving from residential areas.

[BHP Billiton plans to buy back $1.9 billion of bonds to reduce debt and optimize capital institutions] it is reported that BHP Billiton plans to buy back up to $1.9 billion of bonds to reduce debt, reduce related interest costs and continue to optimize the group's capital institutions. The world's largest mining company has made huge profits from iron ore, which soared to more than $100 a tonne and now has large cash reserves. BHP's underlying profit from continuing operations for the year ended June 30 was $9.06 billion, mainly due to the negative impact of the epidemic offset by higher iron ore prices. "View details

[BHP Billiton buys renewable energy to reduce energy costs and emissions] BHP Billiton has signed a renewable energy purchase agreement with CleanCo, a state-owned clean energy producer and retailer in Queensland, so that half of the electricity needs of BHP Billiton's Queensland coal mines can be met, significantly reducing carbon emissions through the use of renewable energy such as solar and wind energy. By 2025, the agreement is expected to help the mine reduce electricity consumption by 50% compared with fiscal year 2020, equivalent to a reduction of about 1.7 million tons of carbon emissions between 2021 and 2015. "View details

[the deep integration of 5G technology and rare earth industry is expected to change from quantitative change to qualitative change] due to the gradual introduction of the national policy on the rare earth industry, it will promote the sustainable development of the rare earth industry. With the continuous penetration of 5G technology in various fields, especially in the rare earth industry, the development model and pattern of China's rare earth industry are being rewritten by 5G thinking, and the rare earth industry is expected to cause "qualitative change" by "quantitative change". In other words, rare earth resources far away from the lives of ordinary people will be reshaped and integrated by 5G technology to gradually form a new economic form. "View details

[Hebei iron and steel industry's PMI in August was 52.5% industry profits increased significantly] in August 2020, the purchasing manager index of Hebei iron and steel industry (PMI) was 52.5%, up 0.7% from the previous month, staying above the rise and fall line for four consecutive months, and industry profits increased significantly. Wang Dayong, vice president and secretary general of Hebei Metallurgical Industry Association, believes that the PMI index in August was 52.5%, which was in the expansion range for four consecutive months. Among the main sub-indices, compared with the previous month, the raw material purchase price index, raw material purchase volume index, output index and finished material ex-factory price index increased, while the new order index rose slightly. Raw material inventory index and finished material inventory index are the same as last month. The index of new export orders rebounded slightly after two consecutive months of decline in June and July. The backlog index fell. "View details

[central shares: semiconductor 12-inch wafer production capacity of 70,000 wafers per month] Central shares answered questions from investors on the interactive platform of the Shenzhen Stock Exchange that the company's semiconductor 12-inch wafer current production capacity: Tianjin factory 20,000 wafers per month. Yixing factory 50,000 wafers per month. At present, some products of Tianjin factory have been verified and produced according to the order, while Yixing factory promotes production and verification. Product output depends on capacity release and customer verification.

[rare earth] on September 2, Science and Technology Innovation Board IPO of Baotoutianhe Magnetic Materials Technology Co., Ltd. was formally accepted by the Shanghai Stock Exchange. The company specializes in high-performance NdFeB permanent magnets and high-performance samarium cobalt permanent magnets.

Macro focus

Ministry of Commerce: from January to July this year, the bilateral trade volume between China and Japan fell 2.2% from the same period last year, 0.7 percentage points lower than that from January to June, and the monthly import and export volume has resumed growth since March. In the face of the impact of the epidemic, Sino-Japanese economic and trade cooperation has shown strong resilience. In addition, the catalogue of China's Technology for banning and restricting Export, which was revised and issued this time, is a routine adjustment of the 2008 catalogue in accordance with the situation of scientific and technological development and the needs of promoting international scientific and technological exchanges and cooperation, and is not targeted at specific enterprises.

Overnight shibor was 1.7420%, down 35.20bp. 7-day shibor was 2.1970%, down 0.40 basis points. Three-month shibor was 2.6540%, up 0.80bp.

China Foundation Association: as of the end of July, the total size of private equity management business of securities and futures institutions totaled 17.74 trillion yuan, a decrease of 85.3 billion yuan, or 0.5%, compared with the end of last month. The size of channel products was 8.04 trillion yuan, down 3.4% from the end of last month, while the size of active management products was 9.18 trillion yuan, an increase of 2.1% over the end of last month.

According to statistics released by Johns Hopkins University in the United States, as of 23:28 on September 3, the number of confirmed cases of COVID-19 in the world had risen to 26102099, including 864153 deaths. In the United States, the number of new confirmed cases of novel coronavirus remained around 40, 000 in a single day, with a total of 6115276 confirmed cases by COVID-19 and 185958 deaths.

On Thursday (3rd), US stocks, which had been hitting record highs, made a sharp pullback. The three major stock indexes closed sharply lower, with the Nasdaq down nearly 5%, the S & P 500 down more than 3%, and the Dow down more than 2%. Apple plunged more than 8 per cent, the biggest one-day drop since March 16, while Tesla fell nearly 10 per cent, but some cyclical stocks bucked the trend and cruise and airline stocks outperformed the market. By the close, the Dow was down 807.77 points, or 2.78%, at 28292.73; the Nasdaq was down 598.34 points, or 4.96%, at 11458.10; and the S & P 500 was down 125.78 points, or 3.51%, at 3455.06. The S & P 500 technology sector closed down 5.83%, ending 10 consecutive gains.

Terminal information

[Jubilee Technology: the carbon fiber composite materials of the participating subsidiary are used in the power battery box of new energy vehicles] Jubilee Technology said on the interactive platform: the company's carbon fiber composite materials are used in the power battery box of new energy vehicles. It is mainly the products of Suzhou Yinxi New Energy Composite Co., Ltd., which accounts for a relatively small share of revenue, does not meet the letter standard, and is not included in the consolidated statement of the company.

[Jingke Science and Technology: plans to issue convertible bonds to raise no more than 3 billion yuan] Jingke Science and Technology announcement that the company intends to raise funds by issuing convertible bonds to unspecified objects, and the total amount of public offering shall not exceed RMB 3 billion yuan (inclusive). After deducting the issuance costs, the net funds raised are intended to be invested in a number of photovoltaic power generation projects and to repay loans from financial institutions.

[Ministry of Industry and Information Technology: national production of 3.741 million electric bicycles increased by 49.5% year on year in July] the official website of the Ministry of Industry and Information Technology released on September 3 the operation of the bicycle industry from January to July 2020 according to data from the China Light Industry Information Center. Data show that in July, the national production of two-wheeled bicycles was 4.498 million, an increase of 32.1 percent over the same period last year, and that of electric bicycles was 3.741 million, an increase of 49.5 percent over the same period last year.

[Ministry of Industry and Information Technology: the national output of lithium-ion batteries was 1.62 billion in July, an increase of 11.1% over the same period last year.] the official website of the Ministry of Industry and Information released on September 3 the operation of the battery industry from January to July 2020, according to data compiled by the China Light Industry Information Center. Data show that from January to July 2020, among the main products of the national battery manufacturing industry, the output of lithium-ion batteries was 8.84 billion, down 0.5 percent from the same period last year; the output of lead-acid batteries was 117.758 million kilovolt amperes, an increase of 9.1 percent over the same period last year; and the output of primary batteries and primary battery packs (non-buckle type) was 21.7 billion, down 4.0 percent from the same period last year. In July, the national output of lithium-ion batteries was 1.62 billion, an increase of 11.1 percent over the same period last year; the output of lead-acid batteries was 21.414 million kilovolt amperes, an increase of 26.2 percent over the same period last year; and the output of primary batteries and primary battery packs (non-buckle type) was 3.88 billion, an increase of 7.9 percent over the same period last year.

[Ministry of Industry and Information Technology: from January to July, the operating income of the national household electrical appliances industry was 746.98 billion yuan] the Ministry of Industry and Information Technology: from January to July, the operating income of the national household electrical appliances industry was 746.98 billion yuan, down 12.0% from the same period last year; the total profit was 54.12 billion yuan, down 13.3% from the same period last year.

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