[SMM Analysis] LCO Prices Remain Stable, December Production Declines  

SHFE 2404 tin contract saw limited fluctuations last Friday night, closing at 226,800 yuan/mt, down 0.24%.

At last Friday’s night session, the most-traded SHFE 2405 aluminum contract opened at 19,445 yuan/mt, with its lowest and highest at 19,400 yuan/mt and 19,595 yuan/mt before closing at 19,510 yuan/mt, up 110 yuan/mt or 0.57%.

Tesla has reduced production of electric cars at its China factory due to slow growth in new energy car sales and fierce market competition. Employees have been instructed to work 5 days a week instead of the usual 6 and a half days, with no clear timeline on when normal production will resume. Competition in China is increasing, with Tesla's shipments down in the first two months of 2024, and demand for electric cars in other major regions like the US and Europe also slowing down. Some production lines at Tesla's Shanghai factory, including the battery workshop, are facing longer shutdowns, with production restrictions expected to extend until April.

HRC futures moved sideways today, closing down 0.76% at 3,921 yuan/mt.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on Aug 11, 2023

Overnight July 20, SHFE 2308 aluminum contract opened at 18,315 yuan/mt, the lowest point was 18,205 yuan/mt, the highest point was 18,325 yuan/mt, and it closed at 18,225 yuan/mt, down 50 yuan/mt or 0.27%.

The price of LCO rose last week, mainly caused by the increase in the price of Co3O4.

This is a roundup of global macroeconomic news last night and what is expected today.

The price difference between high and medium-grade ore expanded last week, while that between medium and low-grade ore narrowed. At Qingdao port, the price difference between mainstream high-grade ore (IOCJ fines) and medium-grade ore (PB fines) widened 9 yuan/mt to 93 yuan/mt, while that between mainstream medium-grade ore (PB fines) and low-grade ore (super special fines or SSF) shrank 8 yuan/mt to 135 yuan/mt. Last week, the profits of steel mills expanded slightly, and the price difference between high-grade and medium-grade ores narrowed below 84 yuan/mt.

SHANGHAI, May 15 (SMM) - The futures technical indicators suggest that the most-traded SHFE aluminium contract will fluctuate downwards or bottom out slightly this week.