Metals LME Outperforms SHFE LME Copper Rebounds to 10,000 US Dollar Mark Lithium Carbonate Falls Over 2 Gold Price Hits New High SMM Midday Review

SMM March 20 News: Metal Market: As of midday close, domestic base metals generally fell. SHFE copper rose 1.15%. SHFE nickel fell 1.12%. SHFE aluminum rose 1.16%, SHFE lead fell 0.11%, and SHFE zinc fell 0.34%. SHFE tin fell 0.35%. Additionally, alumina fell 0.89%. Lithium carbonate fell 2.15%, and silicon metal fell 0.2%. The most-traded polysilicon futures contract rose 0.54%. Ferrous metals series mostly fell, with iron ore down 0.39%, rebar slightly down, HRC up 0.33%, and stainless steel down 0.52%. In the coking coal and coke sector, coking coal rose 0.15%, and coke fell 0.63%. Overseas Metals: As of 11:33, overseas base metals generally rose. LME copper rose 0.27% to $10,014/mt, reaching a high of $10,046.5/mt during the session, the highest since October 2024. LME zinc rose 0.26%, LME aluminum rose 0.28%, and LME tin rose 0.57%. LME nickel fell 1.58%. LME lead fell 0.12%. Precious Metals: As of 11:33, COMEX gold rose 0.52%, hitting a record high of $3,065.2/oz during the session; COMEX silver rose 0.7%. Domestically, SHFE gold rose 0.56%, hitting a record high of 710.12 yuan/gram; SHFE silver fell 0.33%. Previously, US Fed policymakers expected two interest rate cuts by the end of this year, which further boosted gold's appeal amid economic headwinds. Dick Poon, manager at Heraeus Metals Hong Kong Ltd, said, "Gold is supported by various market uncertainties, a weaker US dollar, and expectations of further rate cuts by the Fed." Nicholas Frappell, director at ABC Refinery, said, "Given the strong performance of gold in Q1, a pullback is not out of the question. However, so far, the market adjustment has been relatively short, and buying has been good. There may be some resistance around $3,090-3,100." As of midday close, the main European shipping futures contract fell 5.45% to 2,039.9 points. As of 11:33 on March 20, some futures midday performances: SMM Metal Spot Prices on March 20 Spot and Fundamentals Copper: Today, #1 copper cathode in Guangdong was quoted at a premium of 160-210 yuan/mt against the front-month contract, with an average premium of 185 yuan/mt, up 55 yuan/mt from the previous trading day. SX-EW copper was quoted at a premium of 80-100 yuan/mt, with an average premium of 90 yuan/mt, up 70 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 81,605 yuan/mt, up 1,030 yuan/mt from the previous trading day, and the average price of SX-EW copper was 81,510 yuan/mt, up 1,045 yuan/mt from the previous trading day. Spot market: Guangdong inventory has decreased for 13 consecutive days, now 32,500 mt lower than the highest level of the year... Click to view details Macro Front Domestic: [Ministry of Natural Resources Promotes Long-Term Mechanism for Market-Based Trading of Mining Rights in Three Aspects] Recently, the Ministry of Natural Resources promoted the establishment of a long-term mechanism for market-based trading of mining rights in three aspects. First, it standardized the setting of conditions for mining rights transfer. It fully promoted competitive transfer of mining rights, strictly controlled agreement transfers, and ensured fair participation of all types of business entities in market competition. In the transfer of mining rights, it formulated transfer plans, announcements, and related documents according to the policy regulations of the national unified large market. It also formulated a list of preventive measures for improper intervention in competitive transfer transactions of mining rights, prohibiting the setting of local protection and regional barriers, hindering business entities from participating in competitive transfer of mining rights, restricting the free flow of mineral products nationwide, and other hidden barriers that hinder market-based trading of mining rights. Second, it strictly managed the authority of mining rights transfer. All levels of natural resources authorities should strictly follow the prescribed authority to carry out the transfer of mining rights, scientifically and reasonably determine the exploration and mining types of the transfer blocks based on resource reserve scale, economic and social value, and strategic importance, and strictly prohibit overstepping authority. Third, it strengthened monitoring of mining rights transfer transactions. (Cailian Press) [March LPR Quotations Released: 5-Year and 1-Year Rates Remain Unchanged] The People's Bank of China authorized the National Interbank Funding Center to announce that the March loan prime rate (LPR) quotations were as follows: the 5-year LPR was 3.6%, the same as last month. The 1-year LPR was 3.1%, the same as last month. [National Energy Administration: As of End of February, Total Installed Power Generation Capacity Grew 14.5% YoY] Data from the National Energy Administration showed that as of the end of February, the total installed power generation capacity in the country reached 34.0 billion kW, up 14.5% YoY. Among them, solar power generation capacity was 9.3 billion kW, up 42.9% YoY; wind power capacity was 5.3 billion kW, up 17.6% YoY. From January to February, the cumulative average utilization hours of power generation equipment nationwide was 505 hours, 61 hours less than the same period last year; the investment in power source projects by major power generation companies was 75.3 billion yuan, up 0.2% YoY; the investment in grid projects was 43.6 billion yuan, up 33.5% YoY. [PBOC Net Injects 232.6 Billion Yuan in Open Market] The PBOC conducted 268.5 billion yuan of 7-day reverse repo operations today, with a winning bid rate of 1.50%, unchanged from before. With 35.9 billion yuan of 7-day reverse repos maturing today, the net injection was 232.6 billion yuan. The central parity rate of the RMB exchange rate in the interbank foreign exchange market on March 20 was 7.1754 yuan per US dollar. US Dollar: As of 11:33, the US dollar index fell 0.11% to 103.36. According to CCTV News, the US Fed concluded its two-day monetary policy meeting on Wednesday, announcing that it would maintain the federal funds rate target range at 4.25% to 4.50%. This is the second time since the January meeting that the Fed has decided to keep rates unchanged. Fed policymakers still expect two 25-basis-point rate cuts by the end of this year, consistent with December's forecast. Fed Chairman Powell stated in a press conference that recent signs indicate that consumer spending has slowed after rapid growth in H2 2024. Surveys of households and businesses suggest increased economic uncertainty. On March 19, the US President urged the Fed to cut interest rates, stating that US tariffs are beginning to affect the economy. Other Currencies: Australia's employment numbers unexpectedly declined in February, despite the unemployment rate remaining unchanged, leading to a weaker Australian dollar. Data showed that net employment fell by 52,800 from January, well below the market expectation of an increase of 30,000. The unemployment rate remained at 4.1%, in line with market expectations. (Forex Live) Data: Today, the upper and lower limits of the federal funds rate target for the week ending March 19, US Q4 current account, US March Philadelphia Fed Manufacturing Index, US initial jobless claims for the week ending March 15, US February existing home sales, UK January unemployment rate (ILO standard), UK March CBI industrial order difference, UK January average earnings including bonuses, UK March central bank benchmark rate, Australia February seasonally adjusted unemployment rate, Australia February employment change, Switzerland Q1 central bank policy rate, New Zealand Q4 GDP annual growth (production method, seasonally adjusted) will be released. Additionally, the FOMC will release its interest rate decision and economic projections, and Fed Chairman Powell will hold a monetary policy press conference. ECB President Christine Lagarde will speak at the European Parliament's Economic and Monetary Affairs Committee, the Swiss National Bank will release its interest rate decision, and the Bank of England will release its interest rate decision. Crude Oil: As of 11:33, crude oil futures were up, with WTI rising 0.55% and Brent rising 0.54%, supported by a decline in US fuel inventories. After the EIA reported a larger-than-expected drop in distillate inventories, oil prices rose. Distillate inventories, including diesel and heating oil, fell by 2.8 million barrels, exceeding the forecast of a 300,000-barrel decline. However, US crude inventories increased by 1.7 million barrels, more than the expected 512,000-barrel rise. On Wednesday, it was reported that the CEO of Chevron requested a 60-day extension from the US government to continue its operations in Venezuela, with the original deadline set for April 1. Earlier reports indicated that PDVSA planned to continue using its joint venture with Chevron to export oil. (Webstock Inc.) Spot Market Overview: Supply Reduction, Suppliers Firm on Quotes, Stimulating Premiums to Rise Significantly [SMM South China Copper Spot] Copper Prices Surge, Downstream Buyers Lose Interest, Market Sees Only Sporadic Transactions [SMM North China Copper Spot] [SMM Nickel Sulphate Daily Review] March 20, Nickel Salt Smelter Inventory at Low Levels Other metal spot reviews will be updated later, please refresh to check~