Home / Metal News / Precious Metals / [SMM comment] the weakening of the US dollar boosted the metal Shanghai lead, zinc and copper up more than 1%. Last period crude oil rose more than 1%, precious metals fell, Shanghai silver fell 1%.
[SMM comment] the weakening of the US dollar boosted the metal Shanghai lead, zinc and copper up more than 1%. Last period crude oil rose more than 1%, precious metals fell, Shanghai silver fell 1%.
Sep 18,2020 10:01CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

SMM9 March 18: the overnight dollar index weakened sharply, boosting the overall strength of non-ferrous metals in the morning. Most of the LME metal market was red in the morning trading. By around 09:40 in the morning, Lun Zinc rose nearly 0.8%, Lunxi Copper, Lun Aluminum, Lun lead rose nearly 0.6%, Lunxi rose nearly 0.5%, Shanghai Nickel fell nearly 0.1%, most of the domestic non-ferrous metals market was red, Shanghai lead rose nearly 1.7%, Shanghai Zinc rose nearly 1.5%. Shanghai copper rose nearly 1.3%, Shanghai aluminum rose nearly 0.8%, Shanghai nickel fell slightly, and Shanghai tin fell nearly 0.7%.

In terms of copper, the main copper in Shanghai opened at 51520 yuan / ton overnight, fell briefly after the opening, then quickly pulled up, continued to climb to 51970 yuan / ton, and finally closed at 51940 yuan / ton, with a trading volume of 53000 lots and a position reduction of 3381 to 97000 hands. It is expected to be 6790-6850 US dollars / ton for Lun Copper and 51800-52300 yuan / ton for Shanghai Copper today.

[summary of SMM Morning meeting] the continuous decline in the number of initial jobless claims in the United States this week is supported by copper futures.

In terms of lead, lead closed slightly higher overnight, wary of the impact of a rise in the dollar index on lead prices. The trend of lead in Shanghai closely follows the small rise in lun lead at night, and it is expected that the domestic lead price will fluctuate in the short term. The price of lead in SMM1# is expected to rise by 75-125 yuan per ton today.

[SMM lead internal morning meeting record] recycled lead sticker narrows Shanghai lead low rebound

In terms of zinc, in terms of Shanghai zinc, overnight crude oil is strong, Shanghai zinc is also strong, overseas mines continue to be affected by the epidemic, uncertainty of mine supply in the fourth quarter, and smelters prepare for winter storage in advance, the mine end is slightly tight, and the consumption of zinc downstream is relatively stable. Zinc fundamentals are still good, and zinc prices may continue to fluctuate in the short term.

[minutes of SMM Morning meeting] overnight, the performance of zinc in Shanghai was strong and the spot transaction downstream was lower than expected.

In terms of black series, thread rose by nearly 0.6%, hot coil by nearly 1%, stainless steel by nearly 0.5%, coke by nearly 1.2%, coking coal by nearly 0.8%, iron ore by nearly 1.2%. In terms of threads, inventory elimination accelerated this week, but under high production, the average weekly decline since entering the "Golden Nine" has only been maintained at 80, 000 tons, far less than the 416000 tons in the same period last year. The total stock has increased by more than 50% over the same period last year. And at present, electric furnace plants and blast furnace plants still have small profits, and the space for output decline is very limited, and it is difficult for terminal demand to break out centrally under the influence of funds and other factors, high inventory will probably become the norm of the market in the later stage. the space above the rebar price is firmly suppressed by inventory. But fortunately, on the one hand, the current fundamental month-on-month performance is still improving, on the other hand, the cost side still has a certain support for prices, coupled with the National Day before the release of a certain demand for replenishment, so the price downside space is also relatively limited in the short term.

"Thread inventory report of the third week of September: if you go to the warehouse, such as" drawing ", there is a lot of resistance to price increase.

Crude oil rose nearly 1.7 per cent in the previous period, while US oil rose more than 2 per cent on Thursday, after the Organization of Petroleum Exporting countries ((OPEC)) and its allies said the alliance of oil producers would crack down on countries that failed to comply with the production reduction agreement and planned to hold a special meeting in October if the oil market weakens further. Three OPEC+ sources said the team had put pressure on countries that had failed to implement the agreement, such as Iraq, Nigeria and the United Arab Emirates, to step up production cuts to compensate for over-quota production in May-July, while extending the implementation period of compensatory production cuts from September to the end of December.

In terms of precious metals, Shanghai gold fell nearly 0.2%, Shanghai silver fell nearly 1%, and spot gold fell to a more than a-week low on Thursday after the Federal Reserve dashed investors' hopes of more stimulus measures to support the economy hit by the coronavirus. Analysts point out that although the Fed is dovish, it does not seem dovish enough for the gold market.

As of 09:40, the status of contracts in the metals and crude oil markets:

Silver Industry chain Summit Forum

Seminar on the Application of Silver Market in China

Scan the code to participate in the meeting or apply to join the SMM Precious Metals Industry Exchange Group.

SMM comment
exclusive report
headline recommendation

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn