SMM3 March 4: before noon, non-ferrous metals generally fell, Shanghai Nickel fell by the limit. By midday trading, Shanghai copper was down 0.9%, Shanghai Aluminum was up 0.92%, Shanghai zinc was down 2.19%, Shanghai lead was down 1.4%, Shanghai nickel was down 6%, Shanghai tin was down 2.68%, and international copper was down 0.96%.
Today, Shanghai Nickel opened down the limit at 130490 yuan / ton, down 6 per cent. Renni also fell sharply yesterday, falling at one point to $17200 a tonne, nearing the 17000 mark, a drop of more than 7 per cent at one point. Spot price, SMM nickel electrolytic nickel at 132250 yuan / ton, down 7350 yuan / ton compared with yesterday. Yesterday, it was reported that Qingshan Industry and Huayou Cobalt, Zhongwei shares signed a high ice nickel supply agreement. The three parties jointly agreed that Qingshan Industries will supply 60,000 tons of high matte nickel to Huayou Cobalt Industry and 40,000 tons of high matte nickel to Zhongwei shares within one year from October 2021.
[SMM brief Review] Shanghai Nickel fell by the limit! A piece of news triggered the collapse of the nickel market, the balance of supply and demand will change?
In terms of aluminum, aluminum futures continued a strong trend in early trading, reaching a new high in nearly 10 years. Shanghai Aluminum maintained a high concussion before noon. The monthly contract concentrated around 17600 yuan / ton, and the spot discount narrowed to 30-10 yuan / ton. East China spot transactions concentrated 17560-17580 yuan / ton. Middlemen are still active in receiving goods, coupled with some downstream taking goods on demand, the liquidity of aluminum ingots is relatively not very abundant.
[current aluminum afternoon review] the spot discount for the expansion of aluminum back structure is narrowed.
In addition, SMM statistics on March 4th domestic electrolytic aluminum social inventory of 1.173 million tons, weekly accumulation of 91000 tons. Wuxi, South China Sea and Gongyi region continue to contribute major increments, need to continue to pay attention to the arrival of goods and the strength of downstream recovery.
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Reduction lead refinery price, recycled lead refinery sales sentiment, some even quoted SMM1# lead average price of the factory, downstream procurement bias towards primary lead, recycled lead market trading is general.
[SMM afternoon Review] recycled lead: lead expected to fall to Wanwu recycled lead cherish selling price
For the black system, the thread fell by 0.21%, the iron ore rose by 1.95%, and the hot coil fell by 0.12%. He Wenbo, executive director of the China Iron and Steel Industry Association, pointed out that the primary task of the iron and steel industry is to ensure supply, give full play to the regulatory role of the import and export market, and appropriately increase imports of primary products, especially billets, to meet domestic iron and steel demand. this is also in line with the country's "double cycle" development pattern and the orientation of opening wider to the outside world. China's iron and steel industry is facing the double constraints of resources and environment, and the two constraints are becoming more and more stringent. The appropriate expansion of imports is the solution under the dual constraints. While meeting the needs of the domestic market by expanding imports, it is also necessary to prevent unfair competition and prevent excessive imported products that are not suitable for domestic demand from attacking the domestic market and infringing upon the interests of domestic steel mills.
Crude oil rose 1.4% in the previous period. Oil prices rose for a second straight day on Thursday as OPEC producers may decide not to increase crude oil production at a key meeting later today and US refined oil inventories fell sharply last week. Brent crude futures are now up 0.6% to $64.44 a barrel. Us crude oil futures rose 0.5% to $61.57 a barrel. OPEC sources said the OPEC, made up of the Organization of Petroleum Exporting countries ((OPEC)) and other oil-producing countries, is considering extending production cuts to April rather than increasing production, as the recovery in oil demand caused by the novel coronavirus crisis remains fragile.
In terms of precious metals, Shanghai gold fell 1.26% and Shanghai silver fell 1.88%. Gold plunged to $1711.19 an ounce yesterday, its lowest level in nearly nine months, as rising US bond yields and a stronger dollar undermined gold's attractiveness. In addition, the Senate vote on the stimulus bill may be pushed to the weekend, which could be a further drag on gold prices. But Fed officials' comments on yield control could boost gold prices, with the market paying particular attention to Fed Chairman Colin Powell's speech on Thursday.
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