Metal trading early mixed strong shock of Shanghai aluminum rose more than 1.5% coking coal rose 4.26% [SMM comment]

SMM12 March 20 news, the dollar climbed Friday morning after the opening of the week turned to downside shock, there is a slight decline. Crude oil maintained its previous decline and continued to decline.

At the beginning of the metal session, there were mixed ups and downs, with only Shanghai Aluminum and Shanghai Nickel floating red. Shanghai Aluminum continued to expand, up 1.59%. SMM analysis in the low inventory boost, Shanghai Aluminum will remain strong shock in the short term. Shanghai lead led the decline by 1.02 per cent, while Shanghai zinc fell by nearly 1 per cent at one point. Shanghai Copper and Shanghai Tin fell slightly. The black sector was red across the board, and iron ore remained volatile after opening, rising slightly by 0.81 per cent as of 09:30. Thread and hot coil continued to rise after opening, both rising by more than 1.3%. Stainless steel turned red after the opening, with a slight increase of 0.44%. Shuangjiao continued to rise all the way up, with coking coal rising by more than 4.2% and coke by 1.7%.

The outer disk is slightly inferior to the inner disk, only Lun aluminum slightly increased by 0.31%, which is much smaller than the previous increase. Lun Copper continued to wobble after the opening of trading. Len Zinc led the way with a 0.8% decline, followed by Len lead, followed by Len Nickel, which fell slightly by 0.28%.

As of 09:30, the metal futures market:

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On the copper side, the dollar index rebounded sharply yesterday, hit by an unexpected 15 basis point increase in benchmark interest rates by the Bank of England and the first step of tightening by the European Central Bank. In addition, the Federal Reserve (Federal Reserve / FED) optimistic economic forecasts boosted market sentiment, overnight copper pressure fell. It is expected to be today.

"the surge in O'Micron cases in England novel coronavirus continues to curb the rise in copper prices [minutes of SMM Copper Morning meeting]

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In terms of aluminum, the profit state of domestic electrolytic aluminum has improved, but due to the influence of environmental protection and dual control, the domestic supply side is still operating at a low level. In addition, according to the feedback of some aluminum factories in Xinjiang, there has been a backlog of aluminum products on the Xinjiang platform recently, and there has been a lack of goods in East and South China.

"the profit improvement of the electrolytic aluminum industry is expected to slow down the pace of going to the warehouse this week [minutes of SMM Aluminium Morning meeting]

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As for lead, the demand for reserve of raw materials before the end of December and the demand for funds at the end of the year increased, and the enthusiasm for shipping increased. The mainstream quotation of the original refinery left the factory at a discount of 50 to 50 yuan per ton, while the discount for the recycled refinery was expanded to 400-500 yuan per ton. On the demand side, the demand for funds at the end of the year is also strong, superimposed lead prices rebounded on Friday, downstream wait-and-see, purchasing sentiment is low, the market turnover is few.

"Macro-tightening is expected to strengthen the weak volatility of lead prices at the end of the year [minutes of SMM lead Morning meeting]

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On the zinc side, power shortages in the supply side and Europe have led to production cuts in smelters again, and domestic smelters have also recovered less than expected due to frequent disturbances on the supply side. On the consumer side, domestic downstream consumption has entered the off-season, and the market will to receive goods is not high after the rise in zinc prices.

"the competition for high prices aggravates the surge and decline of zinc prices in the two cities [minutes of the SMM Zinc Morning meeting]

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Tin, 2201 contract prices fell in the middle of the week last week rebounded quickly, showing a V-shaped reversal trend during the week. As of Friday's close, prices were still on the middle axis of the high horizontal range, and last week's price dip did not destroy the recent high horizontal range. The rebound in the process of a large number of funds leaving the market also shows that with the contract delivery approaching, the speculative heat of the contract gradually decreased. Therefore, under the condition of stable spot supply and demand in the near future, the trend is more likely to maintain horizontal finishing.

"the steady trend of supply and demand has greatly increased the probability of continuing the horizontal market [minutes of the SMM Xi Morning meeting]

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In terms of nickel, at present, the advantage of nickel is that the absolute inventory is too low, but from the performance of monthly difference, the market does not seem to pay attention to the positive set of monthly difference of nickel, and the follow-up still needs to pay attention to the situation of import window; in addition, the price difference between ferronickel and pure nickel has been opened to 20,000 yuan / ton, the demand for nickel sulfate is still pessimistic, and the fundamental support of nickel as a whole is not enough.

"Import window short-term opening pure nickel inventory a small amount to replenish the spot market tension has eased this week [minutes of SMM Nickel Morning meeting]

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In terms of iron and steel, Liantie continued to be strong and volatile on Friday, with the main contract 2205 closing at 676.5, up 1.88 per cent throughout the day. The price quoted by the spot traders at the port has increased by 20 yuan / ton compared with the previous day. Some merchants are more enthusiastic in shipping, and steel mills purchase on demand. The atmosphere of spot transactions at the port was poor last Friday. Last Friday period snail trend is weak, the terminal wait-and-see mood fermentation, the transaction slightly weakens.

"Liantie continues to be strong, concussion and snail trading is slightly weaker [minutes of SMM Iron and Steel Morning meeting]

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