SMM2 March 18: the whole non-ferrous metals market was red in the morning. By midday, international copper was up 4.56%, Shanghai copper was up 4.58%, Shanghai aluminum was up 3.03%, Shanghai lead was up 1.05%, Shanghai zinc was up 4.48%, Shanghai nickel was up 2.32%, and Shanghai tin was up 3.69%. Copper prices jumped to a nearly decade high on Thursday as China, the largest consumer of metals, returned after a week-long Lunar New year holiday, buoyed by bright demand prospects and supply concerns. Optimistic US economic data, including retail sales, suggest that the Federal Reserve will maintain a loose policy stance, while hopes for further stimulus measures in the US have also boosted expectations that the global economy will recover quickly from the epidemic.
In terms of copper, today, the spot price of electrolytic copper in Guangdong Province rose 0-20 to the contract for that month, and the average price was 10 yuan / ton higher than the previous trading day; the wet copper newspaper discount 50-40 yuan / ton, the average price discount 45 yuan / ton was the same as the previous trading day. The average price of electrolytic copper is 62595 yuan / ton up 2510 yuan / ton, and the average price of wet-process copper is 62540 yuan / ton up 2510 yuan / ton. On the whole, the post-holiday accumulation will continue, but we do not expect it to be very large, although the rising water will decline in the future, but the decline will not be very large, so we will pay attention to when there will be an inflection point in the future inventory.
February 18 SMM Guangdong copper spot market KuaiBao: copper prices soar downstream low acceptance of consignors to lower Shishui shipment
In terms of lead, Shanghai lead rose 15600 yuan / ton in early trading in the atmosphere of general rise in non-ferrous metals. Most of the traders of waste batteries are in a state of holiday, and the supply of goods in the market is still tight, while some refineries begin to replenish the storage after the festival, so the price of waste batteries is easy to rise and difficult to fall. Lead prices soared, during the holiday period, due to logistics restrictions, the backlog of inventory in recycled lead refineries began to be released, and shipments were still dominated by long orders, while most small and medium-sized refineries had not yet resumed work, and the market restored lead and recycled refined lead bulk supply was still tight. Downstream battery factories only a few return to work, more wait-and-see carefully adopted, light transaction.
[SMM afternoon Review] recycled lead: lead flushing high recycled lead is light.
In terms of zinc, the premium of the mainstream brands in Ningbo market to Shanghai is about 20 yuan / ton. Tiefeng and Yongchang Yun quoted a price of about 90 yuan / ton for the 2103 contract in the first period, and slightly increased water in the second period, but there was no deal between Tiefeng and Yongchang brands in the two periods. Some traders quoted for the high-priced brand Huize 200 yuan / ton for the 2103 contract and about 2103 yuan / ton for Hualian to the factory price, and none of them closed the deal. The Spring Festival holiday has just ended, there are few downstream enterprises that formally return to work, and trading in the Ningbo market is light.
[SMM afternoon Review] Ningbo Zinc: trading in Ningbo Market is light
In terms of black, thread rose 2.94%, hot coil 2.44%, coking coal 1%, coke 4.72%, iron ore 5.53%. In terms of hot coil, according to SMM's latest tracking, the planned hot-rolled commodity volume totaled 10.2955 million tons in February 2021, down 3.7% from January 2021, and domestic and foreign trade volume declined with Synchronize. However, affected by the closure of the Spring Festival, terminal demand is stagnant, so the actual impact of a small amount of production reduction on the market is relatively limited. In addition, due to the poor transportation in the north before the festival, the pace of arrival has been relatively slow. During the Spring Festival, after a slight recovery, the market continued to arrive, hot volume inventory continued to accumulate the pace, is currently lower than the same period last year but higher than the same period in previous years. In view of the year later, SMM believes that there is no need to worry too much. There are more migrant workers on the spot this year, and it is expected that the downstream construction will start ahead of schedule. With the continuous recovery of terminal demand, it is expected that the total amount of accumulated storage will not be too large, relatively speaking, it is still optimistic.
Crude oil rose 7.1 per cent in the previous period, and international oil prices rose $1 on Thursday, extending this week's rally to a 13-month high as cold waves in Texas and surrounding areas shut down at least 1/5 of US refining capacity and millions of barrels of crude oil production capacity. Crude oil inventories fell by 5.8 million barrels to about 468 million barrels in the week ended February 12, according to data released by the American Petroleum Institute (API) on Wednesday, compared with analysts' estimates of a decline of 2.4 million barrels.
In terms of precious metals, Shanghai gold fell 2.93%, while Shanghai silver rose 0.43%. International gold prices rose slightly on Thursday, rebounding from more than two-month lows hit last day, as U.S. Treasury yields fell, but a strong dollar curbed gold's rally. Fed officials debated last month how to lay the groundwork for public acceptance of higher inflation, according to the minutes of the Fed's January 26-27 policy meeting.
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