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[SMM Metal Breakfast] lead concentrate-waste battery supply is tight * Zinc concentrate processing fees are lower than the previous month * Tangshan has worked out a pollution control plan for steel enterprises.
Sep 22,2020 07:15CST
translation
Source:SMM
[SMM Metal Breakfast] continuous Depot removal cycle domestic electrolytic aluminum social inventory decreased by 5000 tons to 735000 tons compared with the previous Thursday * lead concentrate & waste battery supply is tight * domestic zinc concentrate supply tight zinc concentrate processing fee month-on-month decline * lithium mica lithium extraction cost advantage large-scale development * Tangshan worked out 11 steel enterprises pollution control "one plant, one volume" precision control scheme * short There is room for rebar prices to fall, but the long-term trend is not pessimistic * three major aluminum projects in Xingxian County, Shanxi Province will be put into production in October * Huayou Cobalt Industry: the Indonesian project is a key link in the layout of the company's nickel industry chain, which is related to the production capacity of nickel sulfate.
The content below was translated by Tencent automatically for reference.

[overnight market] the US dollar soared for six weeks and US stocks collectively closed down. Gold fell sharply under pressure from metals at home and abroad.

"[macro outlook] focus on the data on sales of existing homes in the United States in August and the consumer confidence index in the euro zone in September.

Today's focus

[Jiang Copper North China newly built 220000 ton copper rod production line completed and put into production] September 16, Jiang Copper "three-year innovation doubling" key project-Jiang Copper North China (Tianjin) Copper Co., Ltd. new 220000-ton copper rod production line completion ceremony and QME (Qianhai Joint Trading Center) designated settlement warehouse opening ceremony was held. "View details

[domestic electrolytic aluminum social inventory dropped 5000 tons to 735000 tons compared with the previous Thursday] on September 21, SMM counted the domestic electrolytic aluminum social inventory (including SHFE warehouse receipts): 123000 tons in Shanghai, 24.9 tons in Wuxi, 75000 tons in Hangzhou, 69000 tons in Gongyi, 162000 tons in the South China Sea, 48000 tons in Tianjin and 6000 tons in Linyi. Chongqing 3000 tons, consumer stocks of aluminum ingots totaled 735000 tons, down 5000 tons from the previous Thursday to 735000 tons.

SMM analysis: lead concentrate & waste battery supply is tight. How strong is the rebound of lead price? On the supply side, in terms of primary lead, the production of the smelter is stable, and the smelter that was overhauled before resumes normal production. In terms of recycled lead, affected by the solid waste law, recycled lead smelting enterprises encounter problems such as difficult inter-provincial transportation and high transportation costs of using hazardous waste vehicles, and the supply of waste batteries is tight; while the production enthusiasm of recycled lead factories is boosted by the expected consumption of reserve stores on National Day, the enthusiasm for purchasing waste batteries is high, the price of waste batteries is easy to rise and difficult to fall, and the high cost of recycled lead gives strong support to the price of lead. "View details

[SMM analysis: domestic zinc concentrate supply is tight. Zinc concentrate processing fees decreased month on month] according to SMM research, the output of zinc concentrate in August was 280300 tons, down 3.1% from the previous month and 22.1% from the same period last year. Due to the great impact of the epidemic in the early stage, the mine end recovered less than expected from the same period last year. Since August, the TC of imported ore has been declining, which to some extent reflects that the supply of imported ore is tight, and the balance of domestic ore needs to be adjusted by import, and the decrease in import leads to an increase in demand for domestic zinc concentrate, so the supply of domestic zinc concentrate is tight. "View details

According to SMM, as of Monday, the total inventory of SMM seven zinc ingots was 160100 tons, down 700 tons from last Friday and an increase of 6100 tons from last Monday. Overall inventories fell over the weekend, with a significant decline in Guangdong, while inventories in Shanghai and Tianjin continued to increase. With the increase of smelter output and the increase of market arrival in Shanghai, coupled with the inflow of imported zinc, the inventory increased obviously, and individual traders in Guangdong picked up the goods from the warehouse to East China at the weekend, resulting in a substantial increase in the output of the warehouse and obvious removal of the market. Tianjin galvanized profits weakened, some small and medium-sized factories even showed losses, coupled with the impact of a rapid rebound in prices, downstream procurement demand is general, while the smelter normal arrival, inventory accumulation. Overall, the inventory of the three places in Shanghai, Guangdong and Tianjin increased by 1000 tons, while the inventory of seven places across the country decreased by 700 tons.

[SMM analysis: Guangdong zinc spot rising water has support Shanghai-Guangdong price gap still narrowing space] after the futures change month, Guangdong zinc ingot spot water rose again to continue the performance of rising water after the previous month change, but the difference is that Guangdong zinc rose to a new high for the current month contract and the next month contract. For the future, we believe that a steady rise in downstream orders will boost overall demand, the current low inventory still provides support for spot rising water, and the price gap between Shanghai and Guangdong has also narrowed after rising to 160 yuan / ton. it is expected that there is still room for narrowing the price gap between Shanghai and Guangdong in the short term. "View details

[SMM analysis: Shanghai nickel diving fell by more than 2%, but short-term nickel mine price rise support! SMM believes that the recent nickel price fluctuates mainly with macro factors, and the market releases the power of adjustment after a wave of weak market in the early days of the US dollar. in addition, many short-term factors are apparent in the fundamentals, in addition to the positive rising prices of nickel mines, there are also negative effects of stainless steel prices peaking to put pressure on nickel prices, so although nickel prices do not have a long-term sharp downward trend, they are also relatively lack of power to pick up in the short term. It is estimated that this week, Shanghai nickel is 114000-120000 yuan / ton, Lunni is 14800-15400 US dollars / ton. "View details

[SMM Forecast: stainless steel futures fell by more than 8% in September under the cost support of brakes in the fourth quarter! The price of 300 series stainless steel fluctuates greatly. After rising continuously in July and August, there was a sharp correction in September. On the one hand, due to the high price increase in the previous period, it is difficult for the current market demand to support the high price. On the other hand, the decline of nickel price and stainless steel contract price has a certain pressure impact on the stainless steel spot market. However, under the support of cost, the downward space of stainless steel is limited, and it is expected that it will be stable in the fourth quarter. "View details

[SMM analysis: lithium mica lithium extraction cost advantage large-scale development] the lithium oxide reserves of Jiangxi Yichun mine resources is about 5 million tons of lithium carbonate equivalent, which is the largest lithium mica mining area in the world. With the development of lithium mica lithium extraction technology, production equipment transformation and project extension, it is expected that the future production capacity can be increased by more than 20%. "View details

[Zhangyuan Tungsten Industry long order quotation for the second half of September 2020]. Wolframite concentrate (WO3 ≥ 55%): 84000 yuan / standard ton; 2. Scheelite concentrate (WO3 ≥ 55%): 82500 yuan / standard ton; 3. Ammonium paratungstate (national standard zero): 128500 yuan / ton. "View details

Tangshan Atmospheric Office relies on professional third-party organizations to carry out on-site inspection of 11 iron and steel enterprises one by one, and compiles "one plant and one volume" according to the current situation of the enterprises. that is, "Precision Control implementation Plan" and "Precision Control Law Enforcement Manual". The main purpose of this control is to reduce emissions by implementing "slow air reduction" to blast furnace at night, supporting to reduce pollution emissions from sintering, lime, steelmaking, steel rolling and other processes, and at the same time by controlling transport vehicles to reduce tail gas pollution. "View details

[SMM Steel: Chongqing Iron and Steel blast furnace (1750m ³) will resume production on September 22nd] Chongqing Iron and Steel Plant blast furnace (1750m ³) will resume production soon. In order to ensure the smooth start-up of the blast furnace on September 22nd, Liu Jianrong, the general manager of the company, visited the blast furnace construction site in person to conduct on-the-spot inspection and guidance on the construction and opening preparation of the project. The average daily output of hot metal is about 4000 tons.

Market voice: black series "gold nine silver ten" becomes "late spring cold" Why? Up to now, the expected "Golden Nine" has not appeared for a long time, and iron ore and spiral rolls have gone down all the way this month. Today, ferrous metals fell sharply again, the main contract for iron ore fell 2.88%, the main thread fell 1.59%, and the hot coil fell 1.37%. Futures prices are at their lowest level in the last two months or so. The market as a whole believes that terminal demand is lower than expected, the growth rate of real estate and infrastructure investment is limited, overdraft peak season expectations and other factors lead to the black peak season is not prosperous. "View details

[SMM interview: short-term rebar prices have room to fall but the long-term trend is not pessimistic] up to now, the expected "Jinjiu" has not appeared for a long time, and iron ore and spiral volumes have gone down all the way this month. SMM interviewed Liu Huifeng, an analyst at Donghai Futures. "the decline in rebar prices since September is mainly due to the recovery of demand during the peak season, which is lower than the expected high level of superimposed supply," he said. The gap between supply and demand of rebar (demand-supply) has been negative since July and turned positive only slightly in the second week of September, indicating that rebar is still in a state of oversupply and prices are expected to continue to be under pressure in the short term. " "View details

Important news of metals and industry

[mobilization meeting for green development evaluation of iron and steel, coking, electrolytic aluminum, alumina and chemical fertilizer industries in Henan Province] on September 17, the Department of Ecological Environment of Henan Province organized a mobilization meeting for green development evaluation of iron and steel, coking, electrolytic aluminum, alumina and chemical fertilizer (coal-to-nitrogenous fertilizer) industries in Henan Province, to summarize the work and effectiveness of green development evaluation in 2019, and arrange for a new round of green development evaluation. The meeting fully affirmed the work done by the Green Development Association of the iron and steel, coking, aluminum industry, chemical fertilizer and other industries and its contribution to raising the level of green development of the industry, and stressed the need to maintain strategic strength and shoulder the responsibility of tackling key problems. We will resolutely implement the spirit of General Secretary Xi Jinping's speech at the symposium on ecological protection and high-quality development in the Yellow River basin, and unswervingly promote green development and high-quality development. "View details

[three major aluminum projects in Xingxian County, Shanxi Province will be put into production in October] according to information from the government of Xingxian County, located in Xingxian Economic and technological Development Zone, Baotou Yihe rare Earth Aluminum Co., Ltd. 50,000 tons of aluminum alloy rod 50,000 tons of alloy aluminum wire project, Shanghai Zhengan material Trading Co., Ltd. 50,000 tons of cast aluminum alloy and supporting castings project, Hebei Yatai Electric Power hardware Co., Ltd. 80,000 tons of aluminum power hardware project will be put into production in October this year.

[Ningbo Jinyue New Materials Co., Ltd. ultra-high purity aluminum project settled in Chaiqiao] recently, the annual production of 2000 tons of electronic grade ultra-high purity aluminum and 30, 000 tons of large-scale high-quality aluminum alloy industrialization project officially settled in Zhejiang Ningbo Chaiqiao street, the project belongs to the high-end aluminum industry, involving high-purity metal purification, smelting and casting process. Ningbo Jinyue New Materials Co., Ltd., the investor of the project, was established in December 2017 and settled in "Xigang Town" in Chaiqiao Street.

[Huayou Cobalt Industry: the Indonesian project is a key link in the layout of the company's nickel industry chain, which is related to the production capacity of nickel sulfate] with the promotion of the high nickelization of power batteries, the proportion of nickel in batteries is gradually increasing. The company's wet smelting project with an annual output of 60,000 tons of crude nickel and cobalt hydroxide, and the planned annual production of 45000 tons of nickel metal high nickel matte related products are the main raw materials for further production of nickel sulfate. nickel sulfate can be used to produce ternary cathode material precursor products for lithium batteries. "View details

[inner Mongolia (Naiman) Jingan Nonferrous Metals Co., Ltd. Nickel-based alloy new material project construction content of Inner Mongolia (Naiman) Jingan Nonferrous Metal Materials Co., Ltd. the construction content of the new nickel-based alloy project is to build an annual output of 1.2 million tons of Ni-Fe alloy, 600000 tons of Si-mn alloy, 400000 tons of high-carbon ferrochromium production line and 1.2947 million tons of steelmaking production line. The total investment of the project is 15 billion yuan, of which 18 nickel-iron production lines in the first phase are planned to invest 5 billion yuan, with a total investment of 5.069 billion yuan since the start of construction. "View details

12:08 on September 21st, the No. 2 supercritical coal-fired generating unit of Weidabe Industrial Park in Indonesia was successfully converted and connected to the grid. At present, the system status and parameters of No. 2 unit are normal, the operation is stable, and the parameters meet the requirements of the design specification. "View details

[Merafe Resources: the price of ferrochromium in the fourth quarter of 2020 is the same as that in the third quarter of 2020] recently, Merafe Resources Limited announced that the price of ferrochromium in the fourth quarter of 2020 was announced by shareholders of the company, and the benchmark price of ferrochromium in Europe in the fourth quarter of 2020 was set at 114 cents per pound, the same as in the third quarter of 2020. "View details

[Shenghe Resources: plans to increase rare earth metal production capacity to more than 20000 tons / year] recently, according to Shenghe Resources Investor Relations activity record table, it is proposed to increase rare earth metal production capacity from the current 12000 tons / year to more than 20000 tons / year. In the future, with the commissioning of Lianyungang zirconium-titanium mineral processing project, the raw material processing capacity of zirconium-titanium seashore placer will be increased to 2 million tons / year, and the output of monazite is expected to increase greatly. "View details

[battery metal demand falling pattern or reversing? The lithium industry is expected to meet the performance inflection point ahead of schedule] Last week, driven by improved economic data from China and Europe, the prices of basic metals fluctuated and the price of lithium salt rebounded, and the price of industrial-grade lithium carbonate rose 1.5% month-on-month, which is an important lithium material. On the news side, the sales of electric cars in Europe continued to recover in August, domestic car companies and leading power battery enterprises continued to improve their production plans, the operating rate is expected to reach this year's peak, and the output of battery core materials increased significantly in August compared with the same period last year. Societe Generale's point of view is that the increment of market demand is mainly driven by "C-end", the demand structure is obviously optimized, and the peak season demand of the terminal market may rise in an all-round way. "View details

[Chinalco Light Research New magnesium rare Earth Alloy rolled sheet came out] A few days ago, Chinalco Light Research Alloy Technology Co., Ltd. successfully developed a wide width magnesium rare earth alloy plate with high strength and excellent weldability and realized industrial batch production. the maximum tensile strength of the new magnesium rare earth alloy rolled sheet is 365MPa, the yield strength is 310MPa, and the elongation is more than 6%.

[us rebar exports rose 4.1 per cent in July] according to US Commerce Department export data, US rebar exports totaled 18063 tons by July 2020, an increase of 4.1 per cent over June and 14.8 per cent over July 2019. In value terms, rebar exports totaled US $12 million in July, compared with US $11.4 million last month and US $11.6 million in the same period last year. "View details

[the new material base of Baotou rare Earth High-tech Zone fills the gap of "no electroplating". Since it was completed and put into production in July this year, the two production lines have been running smoothly, orders have been arranged to the end of the year, and the output value this year can reach 30 million yuan. " An Yongping, general manager of Baotou Huizhong Magnetic Valley rare Earth Technology Co., Ltd. And general manager of Baotou rare Earth High-tech Zone Science and Technology Entrepreneurship Center, told reporters that the two production lines have many advantages, such as high degree of automation, good product consistency and stability. Compared with ordinary electroplating, the labor cost can be saved by 80%, the salt spray time of metal surface coating can be increased by 33.3%, and the offline products have high technology content and good product performance, which are well received by the market. "View details

[Yunnan Germanium Company and its subsidiaries received a total of 13.1476 million yuan in government subsidies] Yunnan Lincang Xinyuan Germanium Industry Co., Ltd. and its subsidiaries Yunnan Dongchang Metal processing Co., Ltd., Yunnan Xinyao Semiconductor Materials Co., Ltd., Yunnan Zhongke Xinyuan Crystal material Co., Ltd., Kunming Yungermanium High-tech Co., Ltd., Wuhan Yunjingfei Optical Fiber Materials Co., Ltd. received a total of 15 government subsidies from June 30, 2020 to September 17, 2020. The total amount is 13.1476 million yuan. "View details

[Luliang Jianlong (formerly Haiwei Iron and Steel) ironworks 1800m ³blast furnace ignition] on September 16, the ironmaking plant of Luliang Jianlong Company held the ignition ceremony of 1800m ³blast furnace hot stove. Since November 2018, Wenshui Haiwei Iron and Steel Co., Ltd. has stopped production and implemented the renovation and upgrading project of environmental protection facilities. After the actual controller of the company was detained in May 2019, the environmental protection transformation project was interrupted and the enterprise has stopped production ever since. The Luliang Jianlong project is located in Wenshui County with an annual steel production capacity of 3 million tons. The project has started to resume work and production since June 17 to ensure that high-quality work can be resumed and put into production by the end of October.

[Baosteel shares: shares in the establishment of European smelter Industrial products Co., Ltd. Registered capital 4 billion] Baosteel shares announcement, the company and its holding subsidiary Baoxin Software, with the company's controlling shareholder China Baowu and its subordinate holding companies Ma Steel, Bayi Iron and Steel, Shaoguan Steel Songshan, Echeng Iron and Steel, Ouye Yunshang, a total of eight companies jointly invested in the establishment of Ouye Industrial products Co., Ltd., with a registered capital of 4 billion. Among them, Baosteel and Baoxin Software contributed a total of 1.66 billion yuan and held a 41.5% stake in European smelter industrial products. European smelter industrial products are positioned as a platform service supplier for the procurement of equipment and materials.

Macro focus

Central bank and safe: solicit opinions on the regulations on the management of funds invested by foreign institutional investors in China's bond market. Under the principle of basic matching of local and foreign currencies, the restriction on the proportion of remittance of investment in single currency (RMB or foreign currency) shall be abolished; if foreign institutional investors invest in "RMB + foreign currency", only certain matching requirements will be imposed on the outward remittance of foreign currency. the proportion of remittance will be relaxed from 110% to 120% to effectively meet the fund remittance needs of foreign institutional investors.

State Council: release the overall plan of China (Beijing) Free Trade pilot Zone. The free trade pilot zone covers an area of 119.68 square kilometers, covering three areas: scientific and technological innovation area, international business service area and high-end industrial area. We will support the Institute of Digital money of the people's Bank of China to set up a financial science and technology center, build a legal tender pilot area and a digital financial system.

Central bank: on Monday, the central bank launched 100 billion yuan 7-day reverse repurchase operation and 40 billion yuan 14-day reverse repurchase operation, with a net investment of 60 billion yuan due to the expiration of 80 billion yuan reverse repurchase on the same day.

According to CME Fed Watch, the probability of the Fed keeping interest rates in the 0.5% range in November is 100%, and the probability of raising interest rates by 25 basis points to 0.25% is 0%, while the probability of keeping interest rates in the 0.25% range in December is 100%, and the probability of raising interest rates by 25 basis points is 0%.

Norway wants its sovereign wealth fund to increase its exposure to North American stocks, which have outperformed Europe this year. According to the finance ministry's white paper, the plan requires the transfer of about 6.5 per cent of the fund's equity portfolio from European equities to North American equities, equivalent to about $51 billion. The finance ministry also said it was still reviewing the fund's emerging market equity allocation.

According to the latest data released by the Brazilian Ministry of Health on the evening of Sept. 21, there were 13439 new confirmed cases of COVID-19 in a single day, with a total of 4558068 confirmed cases, and 377 new deaths and a total of 137272 deaths. Brazil still ranks third in the world in confirmed cases, after the United States and India.

House Speaker Nancy Pelosi: the Centers for Disease Control and Prevention has suddenly cancelled guidelines on the airborne spread of novel coronavirus, the latest sign of the Trump administration's poor response to the novel coronavirus crisis.

Terminal information

[16000 new photovoltaic related enterprises were added in China in the second quarter of this year] at present, there are more than 286000 photovoltaic related enterprises in China whose names or business scope include "photovoltaic", and the status is in operation, survival, moving in and out of photovoltaic related enterprises, of which, more than 30% of the related enterprises have registered capital of more than 10 million. As of Sept. 18, subject to industrial and commercial registration, data from SkyEye Professional Edition show that China has added more than 36000 photovoltaic-related enterprises (all enterprise status) this year, including 16000 in the second quarter, an increase of more than 114.5% month-on-month. "View details

Recently, Wang Binggang, head of the national new energy vehicle innovation project expert group, revealed at the global new energy vehicle supply chain innovation conference that the 2.0 version of "Energy Saving and New Energy vehicle Technology Roadmap" has passed the expert review. Wang Binggang pointed out that the 2.0 version of the "Energy Saving and New Energy vehicle Technology Roadmap" has passed the expert review. The overall goal of the latest new energy development technology roadmap is to each account for about 50% of energy-efficient vehicles and 50% of new energy vehicles in 2035, and the automobile industry will basically achieve electrified transformation. "View details

[Baltic dry bulk Freight Index rose due to higher Strait Shipping rates] the Baltic dry bulk Freight Index rose 18:00 or 1.4% to 1314 on Monday. The capesize index rose 40 points, or 2.1%, to 1940, with an average daily profit of $328 to $16089. The Panamanian freight index rose 6 points, or 0.5%, to 1321, with an average daily profit of $56 to $11891. The index of super-convenient ships rose 9 points to 950.

On September 21, the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, the Development and Reform Commission, and the National Energy Administration issued a circular on the implementation of fuel cell vehicle demonstration applications. The circular proposes that the subsidy policy for the purchase of fuel cell vehicles will be adjusted to support the demonstration and application of fuel cell vehicles, and reward the qualified urban agglomerations for tackling key problems and demonstrating the application of key technologies of fuel cell vehicles, so as to form a new development model of fuel cell vehicles with reasonable layout, different emphasis, and coordinated promotion.

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