SMM10 March 13: most of the domestic non-ferrous metals are red this morning. By midday trading, Shanghai Aluminum rose 0.55%, Shanghai Nickel rose 0.31%, Shanghai Copper rose 0.18%, Shanghai lead rose 0.1%, and Shanghai Zinc and Shanghai Tin were flat. The dollar hovered near a three-week low on Tuesday as investors believed the United States would unveil a massive fiscal plan to boost the epidemic-hit economy after the November 3 election, supporting risky currencies. Despite market scepticism about the possibility of a bipartisan stimulus package before the election, Democratic presidential candidate Joe Biden expanded his lead over Trump, prompting investors to expect large stimulus measures after the election.
In terms of lead, after a high of 14905 yuan / ton in Shanghai in early trading, it fell back to 14750 yuan / ton above the horizontal adjustment. Affected by low profits, the price of waste batteries remains generally flat despite the rise in lead prices. Recycled lead follows the market, the willingness to ship is strong, the downstream is carefully picked according to demand, and the transaction activity is weaker than that in the early stage.
[SMM afternoon Review] recycled lead: Shanghai lead Exploration High fall back Light consumption of recycled lead
In terms of zinc, the mainstream trading of zinc ingots in Tianjin market was 19650-19750 yuan / ton, Zijin was traded at 19710-19780 yuan / ton, Huludao was quoted at 21800 yuan / ton, zinc was generally quoted around 420 yuan / ton to 470 yuan / ton to 2011 contract, Zijin to November contract was quoted around 480,500 yuan / ton, and the Tianjin stock market remained around 140yuan / ton compared with Shanghai stock market.
[SMM afternoon Review] Tianjin Zinc: the spot transaction has not returned to the pre-festival level, and the market is down and up.
In terms of black series, thread fell 0.38%, hot coil fell 0.32%, stainless steel fell 1.34%, coke rose 1.79%, coking coal rose 2.56%, iron ore fell 1.15%, hot roll, according to SMM estimates strictly according to documents, the total impact of production restrictions in autumn and winter 2020-2021 on total pig iron is 9.595 million tons (excluding relocation), which is significantly lower than that in autumn and winter 2019-2020. At the same time, in terms of actual implementation, the implementation of environmental protection production restrictions in steel mills last year was less than 50%. So far this year, it is understood that the production limit of steel mills is still based on the documents issued during the double-section period, and the new production limit policy for the heating season has not yet been formally implemented. In view of this, in the short term, the impact of production restriction in heating season on steel output in Tangshan area is relatively limited, and the boost in mentality is more significant. Follow-up SMM will continue to track the intensity of production restrictions, if the implementation is low, then the news surface heat, steel prices will be under pressure.
Crude oil fell 2.4% in the previous period, while US crude oil fluctuated in a narrow range. According to the news, Libyan oil production could rise to 600000 barrels in the future, which will challenge the efforts of OPEC and its allies, including Russia, to curb supply to support oil prices. The governor of Libya's central bank has called on the industry to increase oil production to 1.7 million barrels a day, which would exceed the country's production of 1.2 million barrels a day before the oil port blockade.
In terms of precious metals, Shanghai gold fell 0.32%, Shanghai silver fell 0.58%, spot gold fell slightly, once lost the 1920 mark to around 1917.38, overnight the decline of the dollar postponed, making some gold short-term bulls profit-taking, but the increase in SPDR positions has been approaching again for more than seven and a half years, suggesting that institutional investors and medium-and long-term bullish sentiment are still high. The eyes of the market began to focus on the news related to the US election. Opinion polls show that Biden is more likely to win the election. Analysts pointed out that if Biden wins the election, gold will rise by another 5%.
By the close of noon, the contracts in the metals and crude oil markets were as follows:
