[SMM Metal Morning reference] Today's metal market outlook | the metal industry in some areas has been affected by the spread of the epidemic | the price of molybdenum products has begun to rise.

SMM Morning Review

SMM Steel Morning meeting minutes: iron ore: yesterday even iron continued low shock, the port spot market early quotation lower than last Friday 40 yuan / ton. Coke: the coke market in Shanxi is on the strong side. Thread: last Friday's Politburo meeting released a blockbuster, rectifying the "campaign carbon reduction" punctured the market's strong expectations of a production crackdown in the second half of the year. Hot coil: steel market or shock weak operation, the price center of gravity in August will be lower than last month. [summary of SMM Steel Morning meeting] the steel market may be less volatile and the price center of gravity will be lower in August than last month.

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The market closed overnight.

The market will still face a big data test this week, and the July non-farm payrolls report is undoubtedly a top priority, which is a key guide to the future policy direction of the Federal Reserve. In addition, Federal Reserve Vice Chairman Clarida will give a speech on Tuesday, and Federal Reserve Governor Waller will give a speech on the central bank's digital currency on Thursday. Last night, metal in the outer disk was mixed, with Lun copper down 1%, Lunzn zinc down 0.21%, Lunni down 0.51%, and Lun aluminum, Lun Xi, and Lun lead closed higher. In the internal market, only Shanghai lead recorded a slight increase, an increase of 0.25%.

[overnight market] Metals rise and fall each other and gold and silver rise | the Dow closed down nearly 100 points.

Today we focus on the monthly rate of factory orders in the United States in June, the final monthly rate of durable goods orders in June in the United States, and the annual rate of PPI in the euro area in June.

[macro outlook] focus on the monthly rate of factory orders in the United States in June

U. S. stocks closed mixed on Monday. Investors are weighing strong results against the rapid spread of the delta strain, as falling US bond yields and oil prices worry about the economic outlook. The U.S. Congress is likely to pass a trillion-dollar infrastructure bill this week. The Dow fell 97.31 points, or 0.28%, to 34838.16; the Nasdaq rose 8.39 points, or 0.06%, to 14681.07; and the S & P 500 fell 8.10 points, or 0.18%, to 4387.16.

Crude oil futures fell more than 3 per cent on Monday after weak economic data from China and the US, the world's largest oil consumers, and increased production of (OPEC) crude oil from the Organization of Petroleum Exporting countries raised concerns about weak demand and oversupply.

In precious metals, gold futures edged higher on Monday, boosted by a weaker dollar and lower U.S. Treasury yields, but increased risk appetite reduced some of gold's attractiveness.

LME inventory

Macro focus

[steady growth efforts will be intensified if PMI continues to exceed the "rise and fall line" in July. According to data released by the National Bureau of Statistics a few days ago, China's manufacturing purchasing managers' index ((PMI)) was 50.4% in July. This is the 17th month in a row that the index has been above the tipping point. Analysts said that as one of the important leading indicators of the economy, PMI continued to be in the range of expansion in July, indicating a marked improvement in manufacturing investment. There are many positive changes in the economy, with a strong driving force for steady growth in the third quarter. In view of the outstanding problems such as the pressure on export growth and insufficient demand in the second half of the year, measures to stabilize growth in the third quarter are expected to be strengthened.

[the people's Bank of China and the State Bank of Kazakhstan held the 11th videoconference of the Financial Cooperation Sub-Committee of the China-Kazakhstan Cooperation Committee] recently, the people's Bank of China and the State Bank of Kazakhstan held the 11th videoconference of the Financial Cooperation Sub-Committee of the China-Kazakhstan Cooperation Committee. The meeting was co-chaired by Chen Yulu, Chinese chairman of the subcommittee and vice governor of the people's Bank of China, and Moldabekova, chairman of the subcommittee and vice governor of the State Bank of Kazakhstan. The meeting further discussed issues such as promoting bilateral local currency settlement, deepening inter-bank cooperation, and cooperation in payment systems, financial markets and investment and financing.

The people's Bank of China released the implementation of the standing lending facility in July 2021: the standing lending facility interest rate plays the role of the upper limit of the interest rate corridor, which is conducive to maintaining the smooth operation of money market interest rates. The interest rates of standing lending facilities for overnight, seven-day and one-month loans are 3.05%, 3.2% and 3.55%, respectively.

[31 provinces reported 1.669527 billion doses of novel coronavirus vaccine] according to the website of the State Health Commission, 31 provinces (autonomous regions, municipalities directly under the Central Government) and Xinjiang production and Construction Corps reported a total of 1.669527 billion doses of novel coronavirus vaccine as of August 1, 2021.

[a total of more than 35 million confirmed cases by novel coronavirus in the United States] according to the latest statistics from Johns Hopkins University, the cumulative number of confirmed cases in the United States has exceeded 35 million, reaching 35002148, including 613224 deaths. Statistics from the US Centers for Disease Control and Prevention show that the number of confirmed cases of novel coronavirus in the United States increased by 64.1% in the week to July 30 compared with the week before. In addition, Varensky, director of the US Centers for Disease Control and Prevention, said that more than 97 per cent of novel coronavirus patients admitted to hospitals in the United States were not vaccinated against novel coronavirus.

Today's focus

Note that the metal industry in some areas has been affected by the spread of the epidemic! Affected by epidemic prevention and control measures, the exits or entrances of 22 expressway toll stations in Nanjing, Taizhou, Yangzhou, Nantong and Suzhou are closed. According to SMM, the delivery and sales of some metal industry chain enterprises are affected to varying degrees, and there are enterprise feedback in some areas, logistics is limited, it is difficult for traders to find cars, and some spot delivery may be delayed. Click to view the latest survey summary to view details

[weekly copper inventory data in SMM mainstream areas] as of Monday, August 2, SMM national mainstream copper market inventories increased by 5700 tons to 155900 tons compared with last Friday. The national electrolytic copper inventory increased slightly over the weekend, the first increase since May 21. Recently, the import window opened and imported copper began to flow into the country is the main reason for the increase in inventory. We are concerned about whether the imported copper can continue to flow in large quantities in the future. If so, the inventory may have a base. "View details

[SMM data domestic electrolytic aluminum social inventory fell 15000 tons to 743000 tons compared with the previous Thursday] on August 2, SMM counted domestic electrolytic aluminum social inventory of 743000 tons, down 15000 tons from the previous Thursday. The arrival of goods in Wuxi and Gongyi area increased slightly compared with the previous week, but the current Longhai road section gives priority to the protection of passenger transport, and the freight efficiency is still hindered to a certain extent. "View details

[SMM data: expanded delivery warehouse continues to increase lead ingots need to pay attention to epidemic situation and power cuts this week] according to SMM research, as of Monday, the total inventory of SMM lead ingots in the five places reached 177700 tons, up about 5000 tons from last Friday; up 11600 tons from Monday. "View details

[SMM data SMM Seven zinc ingots social inventory increased by 5400 tons compared with last Friday] according to SMM, as of Monday, the total inventory of SMM seven zinc ingots was 121400 tons, an increase of 5400 tons over last Friday and 5700 tons over last Monday. Inventory increased in the seven places over the weekend, including the Shanghai market, where smelters continued to arrive on the way. After the first batch of goods were sold and stored in the downstream plants, the downstream external purchasing demand decreased and inventory increased. "check the details.

[laterite Nickel Weekly Review prices continue to squeeze Ferro Nickel profits despite strong demand] the average price of 1.5%CIF this Friday is 81.50 US dollars / wet ton, which is 2.50 US dollars / wet ton higher than that of last Friday. The trading situation of nickel ore market this week is still relatively quiet, and there is a big difference between mainstream transaction prices and quotations. The current 1.4%CIF price is as high as 80 US dollars / wet ton. 1.5%CIF quotation to 90 US dollars / wet ton, the market quotation is much higher than the psychological price of the market transaction. "View details

[nickel pig iron mainstream transaction price rise under strong stainless steel demand] the average price of SMM8-12% high nickel pig iron is 1400 yuan / nickel point (including factory tax) this Friday, up 50 yuan / nickel point compared with last Friday; the average price of Indonesian nickel pig iron is 1405 yuan / nickel point (including tax), up 50 yuan / nickel point compared with last Friday. Ferronickel quotation continued the upward trend this week, some bulk orders showed the highest transaction price of 1430 yuan / nickel point, but beyond the mainstream transaction price range, the current acceptable price willingness of steel mills is basically between 1380 yuan and 1430 yuan / nickel point (including factory tax). "View details

[SMM investigation on partial blockade of domestic new energy manufacturers in Jiangsu, Hunan and other places has no obvious restrictions for the time being] according to SMM research, due to the impact of the epidemic, logistics restrictions have occurred in some areas with serious epidemic conditions in Jiangsu and Hunan, but the start-up of mainstream cobalt-lithium new energy enterprises has not been significantly affected for the time being. "View details

[SMM stainless steel futures review ss contract high drop focus on the lower support] throughout the day, the SS2109 contract closed at the Changyin column, and the overall operation was below the daily moving average. The K-column punctured the 5-day moving average of 19461 yuan / ton, and the top of the K-column was faced with the pressure of 20299 yuan / ton on the Bol line. Affected by the falling price of the black series, the ss contract fell back high and fell sharply. The lower 19100 yuan / ton first-line support is better. Follow-up pay attention to the support under the SS contract. "check details."

[SMM molybdenum spot KuaiBao molybdenum product price high operating market narrow fluctuation] at present, the high market price has led to a certain psychological resistance downstream, the overall trading atmosphere weakens. However, the strong overall demand, the prolonged overhaul of Jinduicheng and the end of the off-season in the international market form a certain support for prices, and short-term prices are expected to be mainly stable. "check the details.

Jinduicheng Shaanxi molybdenum mining area affected by heavy rain, what is the impact of shutdown on molybdenum city? According to the relevant staff, some pump drills in Jinduicheng mining area were flooded due to the rainfall. Due to the safety of employees and equipment, the company completely stopped the mining of molybdenum ore and the refining of molybdenum concentrate since the early morning of July 23. SMM learned about the question of when to return to work. "View details

[what is the reason for the sharp reduction in China's molybdenum concentrate imports in June? It is understood that on July 12, the Chilean Ministry of Health confirmed that the border closure policy would be extended until July 25, and there was also news in the market that Chile would resume normal trade in August. SMM expects China's molybdenum concentrate imports to remain low in July. "View details

[the rising bidding prices of Henan molybdenum mining enterprises push molybdenum concentrate prices higher] it is understood that the increase in the number of participants in this auction and the rise in bidding prices have played a certain role in promoting the rise in molybdenum concentrate prices, superimposed by the rising prices of Heilongjiang mining enterprises, and the willingness of other raw material enterprises to follow the rise has gradually increased. SMM learned from market people that on the 29th, the tender price of 45% molybdenum concentrate of Henan Changqing Mining rose to 2370 yuan / tonnage, about 20 yuan / tonnage higher than the previous day's market price. "View details

[demand and supply double support molybdenum product prices begin to rise] at present, due to the previous continuous mine shutdown events led to the consumption of molybdenum concentrate inventory, the market supply gradually began to tighten. At the same time, mine overhaul time exceeding expectations, ferromolybdenum supply reduction and other positive factors support the molybdenum market price rise, the overall market bullish attitude is more consistent, it is expected that short-term prices may continue to rise. "View details

[SMM magnesium ingot spot KuaiBao continues to keep up with the rising magnesium price] the mainstream ex-factory price of 90 magnesium ingots in Fugu area is 21000-21100 yuan / ton, and the mainstream ex-factory price of 95B magnesium ingots is 21700-21800 yuan / ton. The ex-factory price of 90 magnesium ingots in the main producing areas is 200 yuan / ton higher than that of last Friday. Please see the detailed quotation and reasons for the increase as follows. . "View details

Important news of metals and industry

[Escondida Copper Union rejects deal BHP seeks negotiations] the workers' union at BHP Billiton's Escondida copper mine in Chile said on Saturday that it had voted to reject the company's final labor contract offer, prompting BHP Billiton to ask the government to mediate in a last-ditch effort to postpone the strike. "View details

[China Copper Southeast Copper slag separation system has made great progress] in the first half of the year, the indicators of the slag separation system have been greatly improved compared with 2020. The production cost of the same caliber was 3.5% lower than the same caliber last year; the copper content in tailings decreased by 12.5% year-on-year, which was 30% lower than the design value; and the operation rate increased by 15.5% year-on-year, reaching an all-time high of 93.37% in June. In addition to the treatment of accumulated slag, the balance of production and consumption of melting slag has been achieved.

[Jiangxi Copper Group] from July 20 to 21, the Economic activity Analysis meeting of Jiangxi Copper Group Co., Ltd. for the first half of 2021 was held in Guixi. The meeting summarized and analyzed the economic operation and existing problems in the first half of the year, and arranged for the next step of work. Yu Tong, the company's chief financial officer, attended the meeting. In the first half of the year, the company closely focused on the work requirements of fine production organization, high-quality operation and management, and market efficiency maximization. Business income increased by 45.83%, profits increased by 327.5%, and economic value added grew by 54.41% over the same period last year. High-quality achieved the "double more than half" goal.

[Zijin Mining's first-half net profit exceeded 6.6 billion yuan] on July 30, Zijin Mining released a semi-annual report for 2021, showing that the company achieved a net profit of 6.649 billion yuan in the first half of the year, an increase of 174.6 percent over the same period last year and exceeding the level for the whole year of 2020. The company's main economic indicators have achieved leapfrog growth, and have made a good start to the five-year plan and ten-year goals in an all-round way.

[Tianhua ultra-clean: the total annual production capacity of 100000 tons of lithium hydroxide will be completed ahead of schedule] Tianhua ultra-clean said in the record sheet of investor relations activities that the production of Tianyi lithium industry's first phase of 20, 000 tons of battery-grade lithium hydroxide project has reached the design scale. the technical transformation will be completed in August this year, and the production capacity will be further increased. After the first and second phases reach production, the total production capacity of battery-grade lithium hydroxide in Tianyi lithium industry will reach about 50,000 tons. The company's third and fourth phases of the project have also entered the preparatory stage. At present, the feasibility study, environmental assessment, safety assessment and energy assessment have been carried out. It is planned to build a separate production line with an annual output of 25000 tons of lithium carbonate or lithium sulfate causticized lithium hydroxide in 2022. The company's total annual production capacity of 100000 tons of lithium hydroxide will be completed ahead of schedule.

[Longli Technology's first-half net profit 146 million Lithium Iron Phosphate sales 2831.58 tons] Longli Technology's operating income in the first half of the year was about 1.276 billion yuan, an increase of 55.67 percent over the same period last year; the net profit belonging to shareholders of listed companies was about 146 million yuan, an increase of 60.89 percent over the same period last year. In the first half of the year, the company's main product lithium iron phosphate sales volume of 2831.58 tons, operating income of 130 million yuan.

[Hubei Rongtong Hi-Tech Advanced Materials Co., Ltd. put into production of 20,000 tons of lithium iron phosphate new production line] on August 2, Hubei Rongtong Hi-Tech Advanced Materials Co., Ltd. officially put into production the third production line of 20,000 tons of lithium iron phosphate. The new production line took only 2 months from equipment installation, commissioning to production. The overall plan of Lithium Iron Phosphate this year is to expand its production capacity to 95000 tons. This is the second lithium iron phosphate workshop to be expanded this year, with a total capacity of 50, 000 tons, ranking among the top three in the industry.

[Baosteel shares: 1.86% shares have been repurchased at a cost of 3.12 billion yuan] according to the announcement of Baosteel shares, in July, the company bought back a total of 107 million shares through centralized bidding transactions, accounting for about 0.48% of the company's total share capital, with a total amount of 800 million yuan paid. As of July 31, the company has bought back a total of 415 million shares through centralized bidding transactions, accounting for about 1.86% of the company's total share capital. The highest purchase price is 8.07 yuan per share, the lowest price is 6.41 yuan per share, and the total amount paid is 3.12 billion yuan.

[Tangshan Golden Horse Steel withdrew] at 13:51 on July 31, 2021, Tangshan Golden Horse Iron and Steel officially stopped production. It is understood that Tangshan Golden Horse Iron and Steel Group Co., Ltd. was founded in the 1990s, restructured in 2009 to establish Luanxian (Luanzhou City) Golden Horse Industry Co., Ltd., and Tangshan Golden Horse Iron and Steel Group Co., Ltd. was established in December 2017, the company is located in Hebei Luanzhou Economic Development Zone, is a set sintering, ironmaking, steelmaking, steel rolling as one of the iron and steel joint enterprises. The main production equipment is 2 180 kilo sintering machines, 2 96 kilo sintering machines, 1 12 kilo shaft furnace, one 500m ³, 1080m ³, 1350m ³blast furnace, two 120t converters, one 750mm and 850mm hot strip production line, 1250mm cold rolling and pickling galvanizing production line, sewage treatment station and other ancillary facilities. The company has an ironmaking capacity of 2.59 million tons and a steelmaking capacity of 2.4 million tons.

[the first set of demonstration industrialization project of solid waste and carbon dioxide mineralization in the world is expected to be released between February and March next year.] recently, the first phase and second phase of the comprehensive utilization project of carbonized iron and steel slag of Baotou Iron and Steel Co., Ltd. started construction of 100000 tons demonstration industrialization project in the plant area of Baotou Iron and Steel Group Co., Ltd. The project is also the first demonstration industrialization project of solid waste and carbon dioxide mineralization in the world. The first phase and second phase of the 100000-ton demonstration industrialization project plans to complete the installation of civil engineering and main equipment by the end of this year, hot commissioning will begin in February next year, and the first batch of products are expected to be available between February and March.

Terminal information

[Samsung is said to be likely to increase wafer foundry prices] Samsung Electronics, a major South Korean wafer foundry, revealed last week that it would raise wafer foundry prices. According to reports on technology websites Tom's Hardware and SoyaCincau, Ben Suh, senior vice president of Samsung's investor relations department, said at a legal conference a few days ago that Samsung wafer foundry is expected to accelerate its growth, mainly by expanding the Pingze S5 production line and adjusting pricing to support the future investment cycle.

[Volkswagen talks about shortage of automotive chips: the third quarter will still face very big challenges.] Alexander Seitz, chief financial officer of the Volkswagen brand, said on Friday: "although there are signs that semiconductor supply bottlenecks are beginning to ease, from a supply point of view, we expect to face very big challenges in the third quarter." Audi, Volkswagen's biggest profit contributor, said there were signs of a severe supply situation in the coming months, adding that "Audi will continue to step up its research on countermeasures, but in view of continuing shortages, it is not expected to fully make up for the losses caused by production cuts within this year."

[new Jie Neng: at present, it has carried out business cooperation with a number of well-known customers in the photovoltaic field, and the overall sales scale has increased rapidly] Xinjie Neng said on the interactive platform that the company's products have a wide range of market applications. At present, it has carried out business cooperation with a number of well-known customers in the photovoltaic field, and the overall sales scale has increased rapidly. The company has carried out business cooperation with Sunshine Power supply, mainly importing photovoltaic miniature inverter products of Sunshine Power supply.

[China Nuclear Titanium dioxide: engaged in the investment, construction and operation of comprehensive smart energy such as photovoltaic and wind power with the Ningde Times Joint Venture] said on the interactive platform that the company and the Ningde time joint venture are engaged in the investment, construction and operation of comprehensive smart energy such as photovoltaic and wind power, and invest and operate centralized large-scale surface photovoltaic power stations, distributed roof photovoltaic power stations, land wind power and other projects in Gansu Province.

[Xiaopeng Motor: delivery of 8040 vehicles in July increased by 228% over the same period last year] Xiaopeng announced on the Hong Kong Stock Exchange that it delivered 8040 smart vehicles in July 2021, an increase of 228% year on year and 22% month on month, setting a record for the company's highest monthly delivery. as of July 31 this year, the company's total delivery volume reached 38778, an increase of 388% over the same period last year. The company plans to officially release P5 in the third quarter of 2021 and is expected to deliver it in the fourth quarter of 2021.

[us pure electric vehicle sales exceeded 100000 for the first time in the second quarter] in the second quarter of this year, the US auto market rebounded by nearly 50% year-on-year, with sales exceeding 4.4 million units. Among them, sales of pure electric vehicles grew even faster, surging 255 per cent to 118233 from 33312 in the same period last year, accounting for 2.7 per cent of the overall car market.