SMM10 March 23: the domestic metal market is red and thin this morning. By midday, Shanghai Tin fell 0.85%, Shanghai Copper fell 0.4%, Shanghai Nickel fell 0.35%, Shanghai Aluminum fell 0.2%, Shanghai lead rose 0.21%, Shanghai Zinc rose 0.4%, and the US dollar took a break on Friday. Since the beginning of this week, the trend has been depressed, falling about $0.01against the euro and the biggest weekly decline against the yen in a month. Investors are betting on Biden's victory and the possibility of a massive stimulus package in the United States. The dollar has been selling this week as the prospect of a stimulus package underpinned investor sentiment and appetite for riskier currencies, while potential caution boosted the safe-haven currency, the yen.
In terms of lead, Shanghai lead failed to break through the first line of 14450 yuan / ton several times in early trading, falling back above the daily moving average. The refinery is afraid of falling, and the price of waste battery is flat. Recycled lead shipments are active, the discount is expanded, and the mainstream quotation of recycled refined lead is 100-250RMB / ton on the average price of SMM1# lead, which is carefully picked downstream according to demand, and the trading activity is low.
[SMM afternoon Review] recycled lead: Shanghai lead under pressure 14450 recycled lead sticker expanded
In terms of zinc, the market willingness to receive goods suddenly heats up. In the first period of time, a large number of SMM average prices were floated 10-20 yuan / ton to pick up goods, leading to an increase in market activity. In the second trading period, the quotation was quickly raised to about 100 yuan / ton, and the transaction was more smooth. The domestic market received more and less, and the quotation jumped again to about 120 yuan / ton. It is slightly more difficult to close the deal, and the desire to hoard goods is not high when we do demand purchasing in the lower reaches of the weekend. The domestic import price gap widened to about 40 yuan / ton in the later period, and the overall transaction was mainly contributed by traders.
[SMM afternoon Review] Shanghai Zinc: the market is willing to receive goods and the quotation picks up slightly.
In terms of black, thread rose 0.41%, hot coil rose 0.29%, stainless steel rose 0.14%, coke rose 0.77%, coking coal remained flat, iron ore fell by 1.19%. In terms of hot rolls, although the accumulation of hot rolls after the National Day is amazing, judging from the recent speed of falling stock, the market performance is good, and there is also some support for spot prices. Follow-up, the supply side, steel mills centralized maintenance gradually reduced, hot coil production may pick up, supply pressure will increase compared with these two weeks. On the demand side, although the bright spot has not yet been seen, the actual demand is not weak, but in the case of the compression of its own processing profits, it is difficult to maintain a strong demand, and there is basically no problem to maintain it. In view of this, it is expected that the reduction will continue next week, but the extent of reduction will continue to narrow. Spot prices will also be supported by inventory reductions in the short term.
The previous period of crude oil fell 0.04%, US oil fell slightly, the United States is expected to reach a stimulus deal, and the employment data unexpectedly improved, but the outlook for global demand remains cloudy, the epidemic in the United States worsened, and further controls in Europe. Russian President Vladimir Putin said that Russia does not rule out the possibility of postponing the OPEC+ production plan. This suggests that OPEC+ may limit oil production for longer as the epidemic depresses demand again.
In terms of precious metals, Shanghai gold fell 0.62%, Shanghai silver fell 1.44%, and international spot gold fell slightly, as the dollar index rose for the second day in a row. Hopes of introducing a novel coronavirus aid plan before the US election have weakened, and there has been a surge in new cases of novel coronavirus infection around the world. so that the dollar hit bottom and rebounded. As the dollar index rebounded and regained the 93.00 mark, there were signs of stabilization, the yield on 10-year US Treasuries reached a new high in more than four months, the ETF position in gold fell, the short-term bearish signal on the technical side of gold increased, and the gold price faced further downside risks in the short term.
By the close of noon, the contracts in the metals and crude oil markets were as follows:
