Basic metals are generally rising, lithium carbonate hit a three-month high and then weakened, and the black metal sector is all trading lower.

Published: Mar 4, 2024 23:19

Source: SMM

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Overall, in the domestic market, basic metals such as aluminum oxide and nickel fell, while other metals showed slight increases. LME metals fluctuated, with aluminum, nickel, and tin falling, and other metals rising slightly. Lithium carbonate fell after reaching a new high, while industrial silicon rose. The black metal sector closed lower, with coke, stainless steel, and coal falling, and gold and silver in Shanghai rose. In terms of spot and fundamentals, stainless steel prices rose due to high opening of steel mill prices, but with weak consumption demand and increased production, market confidence is low. For lithium carbonate, limited supply and rising prices for scattered orders are reported.

SMM Daily Report: As of the close of the daytime trading on March 4th, basic metals in the domestic market generally rose, with Shanghai nickel falling by 0.87% and aluminum oxide falling by 0.68%, while other metals showed increases of less than 1.00%. As of 15:34 today, LME metals fluctuated, with aluminum in London falling by 0.67%, nickel falling by 0.35%, tin falling by 0.17%, and other metal prices rising by around 0.20%. Lithium carbonate fell by 0.93% after hitting a new high since November 24, 2023, at 125,000 yuan/ton, and industrial silicon rose by 0.34%. The black metal sector closed lower, with coke falling by 1.40%, stainless steel falling by 1.24%, and coal falling by 1.02%, while other metals fell by less than 1.00%. Gold and silver in Shanghai rose by 1.45% and 1.49%, respectively. As of 15:34 today, COMEX gold and silver fell by 0.08% and 0.34% respectively, while the European line shipping main contract closed up by 0.98%.

Spot and fundamentals:

Regarding stainless steel, last week, the rise in futures prices for stainless steel was influenced by the high opening of steel mill prices, which led to a short-term surge in spot prices. With the digestion of low-price warehouse receipts, the spot market rose, but with high nickel inventories in Shanghai and the expansion of overseas nickel iron production capacity, the supply of nickel iron is expected to increase again in April, strengthening the bearish forces in the nickel industry chain. Actual downstream consumption demand for stainless steel is weak, and combined with a significant increase in stainless steel production in March, market confidence is low. Agents are having difficulty selling at limited prices, and it is expected that steel mill prices may adjust this week, with spot prices for stainless steel expected to continue to trade weakly.

Regarding lithium carbonate, due to some lithium salt companies still being in the early stages of repair and maintenance, the supply of long orders available for sale is relatively limited. Some individual lithium salt companies are considering subsequent warehouse deliveries, and overall, lithium salt companies continue to sell long orders at higher prices, while the prices for scattered orders continue to rise.

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