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[SMM Metal Breakfast] four consecutive rises in the US dollar under general metal pressure * the operating rate of steel mills for overhaul has increased * the development of 5G in China has led to the demand for cobalt.
Sep 24,2020 07:19CST
translation
Source:SMM
[SMM Metal Breakfast] Glencore extends the life of the Queensland copper smelter in Australia beyond 2022 * the Indonesian government requires the Indonesian free port PT to build a new copper smelter * the overseas steel market gradually resumes the acceptance of metal manganese orders is still weak * four major documents: speed up photoresist, Breakthroughs in areas such as large silicon wafers * the rapid development of 5G in China will lead to an increase in cobalt demand * the latest rare earth oxide listing price in the south has been announced * the overhaul steel mills have entered the resumption period. The impact of production restriction has come to an end. Iron ore V-shaped rebound * Baowu Aluminum Co., Ltd. realizes single-line daily production and double furnaces in 30t melting and casting operation area.
The content below was translated by Tencent automatically for reference.

[overnight market] the US dollar achieves four consecutive gains under general metal pressure. COMEX futures closed at a two-month low.

"[macro outlook] blockbuster data is coming! Us data released in the evening the US Treasury Secretary and Chairman of the Federal Reserve will also speak at the beginning of the week.

Today's focus

[Glencore extends the life of its Queensland copper smelter to 2022] Glencore International (Glencore) and the Australian Queensland government announced on Wednesday that they would spend A $500m (US $356 million) to extend the life of their Queensland copper smelter beyond 2022 after a financing agreement was reached. "View details

[Indonesian government asks Indonesian free port PT to build a new copper smelter] the Indonesian government's senior minister in charge of mining supervision said on Friday that the Indonesian government will ask the Indonesian free port PT to build a copper smelter in Weida Bay. Freeport Indonesia is currently building a US $3 billion smelter in East Java. The construction of the smelter is part of an agreement reached between Freeport-McMoran and the Indonesian government to maintain its mining rights at the Grasberg mine until 2041.

SMM analysis: what is the trend of aluminum price before the festival? The focus is still on consumption] according to the current downstream survey of SMM, consumption in September was flat compared with August, but slightly weaker than expected. In September, aluminum strip and foil improved moderately, and the overall aluminum profile was flat, but the warming of building profiles was not as expected, the alloy plate improved steadily, and the consumption of aluminum cable was flat. At present, the market has a neutral attitude towards October. Due to the pre-holiday demand for raw materials in downstream factories, short-term consumption is expected to be OK, but due to doubts about the future consumption boom in the end market, the future trend of aluminum prices will be more guided by changes in the consumer side, and SMM will continue to pay attention to research. "View details

[annual output of 2000 tons of electronic grade ultra-high purity aluminum and 30, 000 tons of large-scale high-quality aluminum alloy project] recently, invested by Ningbo Jinyue New Materials Co., Ltd., the industrialization project of 2000 tons of electronic grade ultra-high purity aluminum and 30, 000 tons of large-scale high-quality aluminum alloy has been officially settled in Beilun Chaiqiao, Ningbo. Ningbo Jinyue New material Co., Ltd. is mainly engaged in the R & D and production of electronic grade ultra-high purity aluminum and large-scale high-quality aluminum alloy. As such products have been monopolized by foreign countries for a long time, this project will fill the domestic gap and improve China's semiconductor industry chain.

[SMM brief comment: metal manganese orders are still weak in the overseas steel market] according to SMM, although India's domestic steel market is gradually recovering, the adverse impact of the early epidemic on India's consumption and economy will be difficult to recover in the short term. According to some metal manganese exporters, the actual acceptance of orders overseas in September is light, and there is still a weak mood in the later stage. "View details

Plummeting: which string has been broken by the Shanghai Bank? Overall, central banks, including the Federal Reserve, Europe, the United Kingdom and Russia, did not release more stimulus signals in the short term, the loose expectations expected by the market failed, and concerns about the epidemic triggered a shock fall in precious metals. However, in the long run, nominal interest rates on US debt will be dominated by low shocks in the future, and the US election will gradually enter a critical period, and the geographical situation is still expected to support the safe haven demand for precious metals. "View details

[important documents of the four departments: speeding up breakthroughs in photoresist, large silicon wafers, etc.] in order to expand investment in strategic emerging industries and cultivate and strengthen new growth poles, we should give better play to the important engine role of strategic emerging industries, speed up the construction of a modern industrial system, and promote high-quality economic development. The National Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Industry and Information Technology and the Ministry of Finance jointly issued the guidance on expanding Investment in Strategic emerging Industries and cultivating and strengthening New growth poles. "View details

[SMM: China's rapid development of 5G will lead to an increase in cobalt demand] with the increasing maturity of 5G technology and the strong support of national policies, there will be a huge amount of space for 5G development in the future, which means an increase in demand for rechargeable batteries, which will boost the demand for cobalt to some extent. Therefore, SMM estimates that China's 3C consumer electronics sector will demand 24000 tons of cobalt in 2020. It is estimated that the demand for cobalt in China's 3C consumer electronics sector from 2021 to 2022 will be 26000 tons and 29000 tons respectively, and the demand for cobalt will increase. "View details

[SMM research: Chizhou Xian 200000 tons lithium battery material comprehensive recycling project officially started on September 23.] according to SMM's recent understanding, Chizhou Xian New material Technology Co., Ltd. officially started the 200000 ton lithium battery comprehensive recycling project on September 23, 2017. prior to this, November 21, 2017, Chizhou Xian New material Technology Co., Ltd. handled 200000 tons of lithium battery comprehensive recycling project signing ceremony was held. "View details

[southern rare earths announced the latest rare earth oxide listing prices] A few days ago, the southern rare earth official website released the latest rare earth oxide listing prices, individual product quotations declined, and the prices of most products were the same as last week. In terms of price changes, the quotation of gadolinium oxide was reduced by 1000 yuan / ton and that of holmium oxide by 5000 yuan / ton.

[SMM silicomanganese] on September 23rd, the national price of silicomanganese continued to be weak, and the mainstream price in the northern market was 5900-6000 yuan / ton, and the high price gradually decreased. According to the preliminary understanding of SMM, the output of silicon and manganese from the main producing areas will increase in September, and the spot circulation of silicon and manganese will resume in the coming period of time. Some operators expressed concern about the short-term decline in raw material prices and the compression of profits in downstream steel mills. Whether it will lead to some steel moves in October delayed to start after National Day holiday, resulting in further alloy decline risk.

[SMM analysis: overhauling steel mills have entered a resumption period, operating rates have stopped falling] since the beginning of this week, following a sharp drop in the outer disk over the weekend, the US Secretary of State's visit to Taiwan impacted China's bottom line, and renewed tension in relations across the Taiwan Strait, financial markets staged Black Monday, and market sentiment continued to weaken, although Tangshan once again introduced tighter environmental protection measures, but the market interpreted it as negative iron ore demand, driving iron ore down sharply and dragging down the performance of other varieties. Recently, there have been continuous disturbances in the external market, which has aggravated the market volatility. However, there are not many trading days left before the National Day holiday, the demand for funds to leave the market for risk aversion is increasing, the short-term sharp decline may have come to an end, and the market may be pulled back in the short term. "View details

[SMM exclusive: some steel enterprises have finished overhauling, electric furnace operating rate has rebounded slightly] according to SMM research, as of 9.23, the operating rate of 34 independent electric arc furnace steel mills was 79.44%, up 1.2 percentage points from last week. However, the increment mainly comes from the resumption of production of individual steel mills overhauled in the early stage, which has no trend reference significance. From the perspective of this survey, the recent decline in steel prices, scrap prices are also lower Synchronize, the profitability of most steel mills has not changed much, production conditions are also relatively stable. "View details

[SMM hot volume: the latest tracking of production restrictions on environmental protection in Tangshan-- substantial production restrictions are on the way] recently, documents on further tightening atmospheric control in Tangshan have been issued frequently, but unlike before, the intensity of production restrictions and the enforcement of steel mills are indeed stricter than in the previous period. According to the document, on the basis of the implementation of the Tangshan Air quality Assurance Plan from August to September 2020, measures to limit sintering production in multiple regions and steel mills will be taken from 20:00 on September 22nd (with further notice of the lifting time). "View details

[SMM brief comment: the impact of production restrictions is over iron ore V-shaped rebound] on the whole, the supply side of iron ore is gradually steadily improving, the structural problems of inventory have been improved to a certain extent, and the problem of pressure on the port has gradually alleviated and the overall inventory has rebounded steadily. The current period of iron ore arrival and departure are significantly lower than the month-on-month, superimposed some steel mills still have pre-festival replenishment demand, for the recent continuous decline in the current market may have a certain boost. "View details

[SMM hot roll: North wood southward "channel closed" southern arrival reduction is significant! The arrival of mainstream market resources this week is expected to be 184000 tons, 87000 tons less than last week, or-32% month-on-month. According to SMM, although the production of hot coils in steel mills is still increasing recently, due to the closure of the southward passage of northern wood, the arrival of resources in the north has gradually decreased, leading to a significant reduction in the arrival of goods in the southern market this week. "check for details

[notice by Zheng Shang] notice issued by Zheng Shang on the time of night trading during the 2020 Mid-Autumn Festival and National Day: no night trading will be held on the night of September 30, 2020. 8:55-9:00 on October 9, 2020 will be the collective bidding time for all futures and options contracts, and night trading will resume that night. "View details

Important news of metals and industry

[Freeport creates Copper Mark in production transactions to fulfill responsible production in the Mining Industry] recently, US copper giant Freeport-McMoran (Freeport-McMoRan) announced its commitment to "Copper marked (Copper Mark)", a global standard that ensures responsible production and trading of copper and its contribution to the United Nations sustainable development goals. "View details

[Camoa-Kakoula starts the second phase of the project] according to the Ivanhoe Mining announcement, the Kamoa-Kakoula copper mine joint venture will order long-cycle equipment for the concentrator with an annual ore capacity of 3.8 million tons. this will increase the mineral processing capacity of the mine from 3.8 million tons / year to 7.6 million tons / year.

[high-end aluminum industry project is located in Ningbo Beilun] 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 Ningbo Beilun Chaiqiao. It is reported that the project investor Ningbo Jinyue New Materials Co., Ltd. was established in December 2017 and settled in Chaiqiao Street Dao Xingang Town, Beilun District, Ningbo City. The company is mainly engaged in the R & D and production of electronic grade ultra-high purity aluminum and large-scale high-quality aluminum alloy. As these products have been monopolized by foreign countries for a long time, the implementation of this project will fill the domestic gap and improve China's semiconductor industry chain.

[Baowu Aluminum Industry 30t melting and casting operation zone to achieve single-line daily production of double furnaces] recently, good news came from the factory's 30-ton melting and casting operation area: aluminum ingot single-line daily production reached two furnaces, which has been raised to a higher level on the basis of one furnace per day in the previous period. At about 17:40 on September 19th, the aluminum ingot of the second furnace length 5449mm of Class A finished casting. This is the second single-line production of two furnaces per day after September 16, marking the success of the production rhythm of single-line daily production and twin-furnace production in the melting and casting area of 30 tons.

[sales of Shengsai Die casting products increased by 20% in the previous 8 months] with years of experience in lightweight design and production of spare parts, Shengsai Precision Die casting (Yangzhou) Co., Ltd. successfully won an order for a new energy heat source system from a high-tech enterprise in Zhenjiang. With the increasing market demand for lightweight aluminum alloy parts. Sheng Seth launched all kinds of lightweight products in time to meet the needs of the market. From January to August this year, enterprise sales increased by 20% compared with the same period last year.

[the first 150 tons of metal lithium production equipment of Sheng Wei Lithium Co., Ltd., a subsidiary of Weihua Co., Ltd., has been put into trial production] Sichuan Shengwei Zhiyuan Lithium Industry Co., Ltd., a wholly owned subsidiary of Guangdong Weihua Co., Ltd., has recently put into trial production the first group of 150 tons of metal lithium production equipment of the 600 ton metal lithium project. Shengwei Lithium Industry plans to build 1000 tons of metal lithium project, which is located in Sichuan Shehong Economic Development Zone Lithium Industry Park, in which the first phase plans to build 1000 tons of metal lithium per year.

[Tesla is building a cathode factory and is involved in lithium mining.] at Tesla's Battery Day event, Musk said the company officially entered the mining business. Tesla has acquired ownership of a 10, 000-acre lithium clay deposit in Nevada, Musk said at a press conference. The plan aims to make cheaper and more efficient batteries, which will eventually enable Tesla to lower car prices. Drew Baglino (Drew Baglino), senior vice president of power systems and energy engineering for Musk and Tesla, outlined the company's plans and progress that will eventually lead to an annual battery production of 10 to 20 megawatt hours.

[Tianyuan Manganese Nickel Iron Factory Si-mn ore furnace was ignited successfully] on September 11, accompanied by acoustic firecrackers, the 6 × 25500kVA closed silicon-manganese ore furnace in the Nickel-Iron Plant, which lasted more than 4 months, completed the technical transformation and ignited smoothly. Ma Zixiang, secretary of the party committee of the group, Wang Yan, vice president, Dong Prong, Zhang Runsheng, Shi Yan, chief engineer of Jian'an, and responsible persons of various production units attended the lighting ceremony. "View details

[construction of the second phase of Shizong 1.57 million ton stainless steel industry] on September 21, the start ceremony of key projects in Qujing City in September 2020 was held in Shizong County. This month, the city will focus on 21 key projects, with a total investment of 10.3 billion yuan. at the ceremony, it was announced that the construction of the second phase of the 1.57 million-ton stainless steel industry and the new environmental protection building materials project of Shizong would start. "View details

[Yongjin shares: the acquisition of Qingtuo Shangke is currently in the due diligence stage] Yongjin shares said in response to investors' questions recently that the company's acquisition of Qingtuo Shangke is to further optimize the management process, clarify equity relations, and reduce related party transactions. is currently in the due diligence stage. "View details

[Qingshan and Guangxin plan to invest 4 million tons of stainless steel in Yangjiang] on September 22nd, Xiang Guangda, chairman of Qingshan Industrial Board, and Bai Tao, chairman of Guangxin Group, went to Yangjiang City, Guangdong Province to meet with Jiao Lansheng, secretary of the Yangjiang Municipal CPC Committee. Wen Zhanbin, deputy secretary of the Yangjiang municipal party committee and mayor of Yangjiang, held talks. The two sides had in-depth exchanges on Guangqing's continued investment in Yangjiang and promoting the development of the local stainless steel industry. The two sides jointly agreed to increase the production of 4 million tons of stainless steel and a new 2250 rolling mill in Yangjiang, which will continue to contribute to the social and economic development of Yangjiang. "View details

[the construction of the world's largest gallium nitride plant has been completed in Suzhou] recently, the third-generation semiconductor base in Innosecco Suzhou held a ceremony for the introduction of equipment. This means that the third-generation semiconductor base in Suzhou begins to move from the plant construction stage to the mass production preparation stage, which marks the formal completion of the construction of the world's largest gallium nitride plant, and also marks a new era in the history of semiconductor innovation in China. "View details

[WGC:8 strategic gold allocation rose upstream gold demand improved] the people's Bank of China's gold reserves remained unchanged in August. As of August, the people's Bank of China's foreign exchange reserves totaled $3.1646 trillion, up $10.2 billion from July, according to the State Administration of Foreign Exchange ((SAFE)). The PBoC's gold reserves have remained at 1948 tonnes since September 2019 and now account for 3.7 per cent of total foreign exchange reserves. "View details

[Tangshan Dachuang conduction cooperates with Tsinghua University to develop converter steelmaking temperature measurement spectrum chip] the management committee of Tangshan High-tech Zone helps Dachuang conduct in-depth cooperation with Tsinghua University to jointly develop the spectral imaging chip technology used in converter steelmaking temperature measurement. At present, the spectral chip has been developed and is in the stage of spectral experimental testing.

[base pricing model to create a win-win ecological circle for domestic mines and steel enterprises] A seminar on domestic mine pricing models supported by large businesses was held in Shanghai a few days ago. The Futures Daily reporter learned at the meeting that the current pricing model of domestic mines is relatively single, large factories and mines are mainly priced directly by steel mills, independently operate mines or set prices by reference index, but the overall say is not strong, and in the long run this is not conducive to the further development of domestic mines. Some market participants believe that with the increasing financial degree of iron ore, enterprise pricing can explore more ways to solve the shortcomings of the current pricing mechanism, so that enterprises focus on improving their core competitiveness and better achieve stable operation. "View details

[in mid-September, the daily output of crude steel in key steel enterprises increased by 0.42% month-on-month and 1.94% over the same period last year] according to CISA statistics, in mid-September 2020, iron and steel enterprises produced a total of 21.4559 million tons of crude steel, 18.9559 million tons of pig iron, 20.4522 million tons of steel and 3.1565 million tons of coke. The average daily output in this decade is 2.1456 million tons of crude steel, up 0.42% from the previous month and 1.94% over the same period last year; pig iron is 1.8956 million tons, down 0.03% from the previous month and up 0.47% from the same period last year; and steel is 2.0452 million tons, up 2.3% from the previous month and 4.05% from the same period last year.

According to a recent report, according to GlobalData's transaction database, the total transaction value of the global metals and mining industry reached 2.13 billion US dollars in July 2020. Compared with $4.12 billion the previous month, the value was down 37.4% from the previous month and 48.4% from the average of $4.12 billion in the last 12 months. "View details

[gold] the world's largest gold ETF--SPDR Gold Trust position decreased by 11.09 tons or 0.87% compared with the previous day, and the current position is 1267.14 tons.

Macro focus

Ministry of Finance: from January to August, the total operating income of state-owned enterprises was 38.25686 trillion yuan, 1.4 percentage points lower than the decline in January-July; the total profit was 1.81698 trillion yuan, down 24.2% from the same period last year, 6.2 percentage points lower than the decline in January-July. At the end of August, the asset-liability ratio of state-owned enterprises was 64.6 percent, an increase of 0.4 percentage points over the same period last year.

The General Office of the CPC Central Committee and the General Office of the State Council: issued the opinions on adjusting and improving the scope of income from Land transfer to give priority to supporting Rural Revitalization. Since the first year of the 14th five-year Plan, all provinces (autonomous regions and municipalities directly under the Central Government) have steadily increased the proportion of land transfer income used for agriculture and rural areas year by year; by the end of the 14th five-year Plan period, it will be calculated on the basis of provinces (autonomous regions and municipalities directly under the Central Government). The proportion of land transfer income used in agriculture and rural areas has reached more than 50%.

UNCTAD: the global economy is expected to contract by more than 4 per cent this year, global output will fall by more than $6 trillion, global trade will fall by about 1/5, and foreign direct investment is likely to fall by 40 per cent. Output in developed countries has fallen the most, with some countries seeing double-digit declines this year. Developing countries will suffer severe trauma, but China's economy will still maintain positive growth (growth is expected to be 1.3%). Experts say China is one of the few economies that are not expected to contract and is expected to grow very rapidly next year.

China Foundation Association: openly solicit opinions on the supporting business rules for the public offering of infrastructure securities investment funds. Among them, the "guidelines on due diligence of Public offering Infrastructure Securities Investment funds (trial)" defines the drafting basis of the rules, the implementation subject of due diligence and the connotation of relevant due diligence, as well as the principles of due diligence.

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%.

Redfield, director of the Centers for Disease Control and Prevention, said at a hearing before the Senate Health Committee on Wednesday that he was not suggesting last week that there would be enough novel coronavirus virus miao for all Americans to be vaccinated until the second half of next year. Redfield said there should be about 700 million doses of the vaccine by April, echoing the timetable given last week by Paul Mango, deputy chief of staff of the Department of Health and Human Services. The most well-developed candidate vaccine will require a two-dose regimen, he said. Testifying before another Senate committee last week, he said the vaccine may not be distributed to all Americans who want it until the end of July.

Russia's COVID-19 epidemic Prevention and Control Command announced on the 23rd that there have been 6431 new cases of COVID-19 infection in Russia in the past 24 hours, the largest number of infections since July. As for the rebound of the current epidemic, Popova, director of the Russian Consumer Protection Bureau, said that the recent increase in new infections is related to the beginning of the autumn and winter season. The overall epidemic situation in Russia is stable. At present, there is no need to adopt new restrictions across the country. She called on the public to continue to abide by the epidemic prevention and health regulations to prevent the further spread of the virus. Zvarev, academician of the Russian Academy of Sciences, also said that Russia will not re-implement quarantine. Churanov, chief infectious disease expert of the Russian Ministry of Health, believes that there will not be a second wave of novel coronavirus infection in Russia.

According to the latest data released by the Brazilian Ministry of Health on the evening of September 23, there were 33281 new confirmed cases of COVID-19 in a single day, with a total of 4624885 confirmed cases, and 869 new deaths and a total of 138977 deaths. Brazil still ranks third in the world in confirmed cases, after the United States and India.

Terminal information

[SMM special topic: Tesla launches the new wind direction of cobalt-free battery with high nickel and low cobalt power battery? At 04:30 in the morning on September 23rd, Tesla held a press conference. Tesla, as one of the weather vanes of new energy vehicles, has always been the focus of public attention. Musk's annual shareholders' meeting and Battery Day held by Tesla at the Fremont factory in California is Tesla's first press conference specifically on battery technology. The new "4680" battery released by Tesla has a 16% increase in mileage, a 5-fold increase in energy density, a 6-fold increase in electricity compared with polar ears, and the new battery can reduce the cost per kilowatt-hour by 14%. "View details

[Osong Electronics 6-inch MEMS sensor chip production line officially put into operation] in 2020, Guangzhou Osong Electronics Co., Ltd. 6-inch MEMS semiconductor sensor chip production line officially put into operation, the successful output of temperature and humidity, flow, gas, differential pressure, wind speed and other sensor chips, and for part of the Pearl River Delta customers to provide MEMS semiconductor chip OEM services. "View details

[Sichuan Province hydrogen energy industry development plan released, the application scale of fuel cell vehicles will reach 6000 in 2025] "Sichuan Province hydrogen energy industry development plan (2021-2025)" was officially released. In terms of target, by 2025, the application scale of fuel cell vehicles (including heavy trucks, medium and light logistics, passenger cars) has reached 6000, the supporting system of hydrogen energy infrastructure has been initially established, 60 hydrogenation stations of various types have been built, and 25 leading domestic enterprises have been nurtured. It covers the fields of hydrogen production, hydrogen storage and transportation, hydrogenation, hydrogen energy utilization and so on. Among them, there are 2 core raw material enterprises, 7 hydrogen production enterprises, 6 storage, transportation and hydrogenation enterprises, and 10 fuel cell and vehicle manufacturing enterprises.

[development and Reform Commission and other four ministries and commissions: speeding up the construction of basic supporting capacity of intelligent and new energy vehicle industry] "guiding opinions on expanding investment in strategic emerging industries and cultivating and strengthening new growth poles" put forward, we will carry out a comprehensive demonstration of electrified urban vehicles in the public domain, and increase the proportion of vehicles electrified in urban public transport, rental, sanitation, urban logistics and distribution, and other areas. Speed up the construction of new energy vehicle charging / changing power stations, and improve the coverage of fast charging / changing power stations in highway service areas and public parking spaces. We will implement intelligent network-connected vehicle road testing and demonstration applications, strengthen the construction of vehicle-connected vehicle-road coordination infrastructure, and speed up the application and industrialization of intelligent vehicles in specific scenarios.

[BYD Automobile enters Finnish Market] BYD officially entered the Finnish market by signing an order for 106 pure electric buses with Nobina, the largest public transport operator in northern Europe, on Sept. 22, local time. This is another major breakthrough in BYD's European territory after Germany. This is BYD's first order for an all-electric bus in Finland and the largest order for an all-electric bus in Finnish history. All vehicles are expected to be delivered in the summer of 2021, including 64 in the Finnish capital Helsinki and 42 in the coastal city of Turku in southwestern Finland.

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