Galaxy Securities Says Demand in Building Materials Industry Will Gradually Recover

SHANGHAI, Jun 21 (SMM) - The market is worried about the economic outlook in the context of US and European interest rate hikes to fight soaring inflation, weighing on base metals. SHFE zinc hit its lowest since May 16 at 25,165 yuan/mt yesterday.

In the futures market, LME copper opened at $8,879/mt yesterday and rose to $8,892.5/mt after falling to $8,851/mt.

the annual promotion volume of new energy vehicles in Shanghai in 2021 stood at 254,000 units, a year-on-year increase of 110%.

Nonetheless, iron ore prices are likely to remain stable with some downward potential as the fundamentals have changed little.

Shanghai nonferrous metals closed mixed on the first trading day after the Dragon Boat Festival. The market was relatively bullish as the demand side in China continues to pick up amid policy support. Meanwhile, on May 31 local time, Biden and Powell met and supported a 50bp rate hike at the June and July meetings, easing the worries over a potential 75bp rate hike.

In addition, the lower-than-expected economic data released last week has once again led to the accumulation of bearish sentiment, and the terminal demand was weak. In the short term, the pandemic situation is still evolving, and the downward pressure on the domestic economy has increased, and the downstream demand for HRC will continue to be pressured.

The mainstream transaction price of praseodymium-neodymium oxide today declined slightly to 930,000-940,000 yuan/mt , and the mainstream transaction price of praseodymium neodymium alloy declined to1.13-1.14 million yuan/mt.

US Secretary of the Treasury, Janet Yellen, said on Wednesday (May 18) local time that she advocated the abolition of some punitive tariffs on China.

According to the data released by INSG on Wednesday, the supply deficit in the global nickel market expanded to 11,100 mt in March.

Shanghai and LME base metals all closed with losses when overnight risk aversion sentiment rose as market players were still worried about economy prospect in light of the recent speech from US Fed Chair Powell.