Metals Generally Decline, with Polysilicon, Lithium Carbonate, SHFE Silver, Coking Coal and Coke Among Top Losers, While HRC Rises Over 1% [[SMM Midday Review]]

SMM April 28 News:

In the metal market:

As of the midday close, base metals in the domestic market all fell, with SHFE copper down 0.26%. SHFE tin dropped 0.5%, SHFE nickel fell 0.81%. SHFE aluminum declined 0.23%, SHFE lead decreased 0.24%, and SHFE zinc dropped 0.97%.

In addition, alumina rose 0.17%. Lithium carbonate fell 1.58%, silicon metal dropped 0.79%, and polysilicon declined 1.64%.

The ferrous metals series showed mixed performance, with iron ore down 0.63%, rebar up 0.84%, HRC up 1.12%, and stainless steel slightly up. In the coking coal and coke sector, coking coal fell 1.14%, and coke dropped 1.04%.

In the overseas metal market, as of 11:47, base metals showed mixed performance. LME tin fell 0.83%. LME nickel rose 0.26%. LME lead increased 0.62%, LME copper slightly declined, LME aluminum rose 0.14%, and LME zinc dropped 0.25%.

In the precious metals sector, as of 11:47, COMEX gold rose 0.15%, while COMEX silver fell 0.73%. Domestically, SHFE gold dropped 1.18%, and SHFE silver fell 1.25%. The world's largest gold-backed ETF, SPDR Gold Trust, announced that as of Friday, its gold holdings decreased by 0.24% to 946.27 mt. The latest Kitco News weekly gold survey showed that after days of selling pressure on gold prices, only a few industry experts and retail traders remained bullish on gold.

As of the midday close, the most-traded contract for European container shipping rose 0.78% to 1,386.9 points.

As of 11:47 on April 28, some futures midday market conditions:

》April 28 SMM Metal Spot Prices

Spot and Fundamentals

Copper: Today, Guangdong #1 copper cathode spot prices against the front-month contract were reported at a premium of 180 yuan/mt to 230 yuan/mt, with an average premium of 205 yuan/mt, unchanged from the previous trading day. SX-EW copper was reported at a premium of 120 yuan/mt to 140 yuan/mt, with an average premium of 130 yuan/mt, unchanged from the previous trading day. The average price of Guangdong #1 copper cathode was 77,620 yuan/mt, down 515 yuan/mt from the previous trading day, while the average price of SX-EW copper was 77,545 yuan/mt, down 515 yuan/mt from the previous trading day. Spot market: Guangdong inventory has declined for 18 consecutive days, with strong downstream consumption being the main reason. Inventory fell significantly after the weekend and is now close to breaking the 20,000 mt mark... 》Click for details

Macro Front

Domestic:

【Pan Gongsheng: Implement a moderately loose monetary policy to promote high-quality development of China's economy】 The State Council Information Office held a press conference at 10:00 this morning, inviting Zhao Chenxin, Deputy Director of the National Development and Reform Commission (NDRC), Yu Jiadong, Vice Minister of Human Resources and Social Security, Sheng Qiuping, Vice Minister of Commerce, and Zou Lan, Deputy Governor of the People's Bank of China (PBOC), to introduce policies and measures for stabilizing employment and the economy to promote high-quality development, and to answer questions from reporters. Zhao Chenxin of the NDRC: China will introduce and implement several measures to stabilize employment and the economy to promote high-quality development; Yu Jiadong of the Ministry of Human Resources and Social Security: In Q1, 3.08 million new urban jobs were created nationwide; Sheng Qiuping of the Ministry of Commerce: The implementation of the consumer goods trade-in policy has boosted consumption by over 720 billion yuan; Zou Lan of the PBOC: The central bank will adjust the reserve requirement ratio (RRR) and interest rates in a timely manner based on domestic and overseas economic conditions and financial market operations. 》Click for details

【PBOC injects a net 103 billion yuan into the open market】 The PBOC conducted 279 billion yuan in 7-day reverse repo operations today, with the operation rate at 1.50%, unchanged from the previous rate. As 176 billion yuan in 7-day reverse repos matured today, the net injection was 103 billion yuan.

► On April 28, the central parity rate of the RMB against the US dollar was 7.2043 yuan per dollar.

US Dollar:

As of 11:47, the US dollar index was flat at 99.62. A series of economic data will be released this week, including the PCE price index on Wednesday and the non-farm payroll report on Friday, which are expected to provide guidance for the market to judge the future policy direction of the US Fed.

Other Currencies:

US-Japan trade negotiations enter deep waters! In the finance ministers' meeting that just concluded last week, Japan seemed to have avoided direct pressure from the US on yen appreciation, but upon closer examination of the statements from both sides, the exchange rate issue and the Bank of Japan's policy remain the "sword of Damocles" hanging overhead. As the second round of negotiations is about to begin, the game concerning the economic lifelines of the two countries is undercurrent. Japanese Finance Minister Kato Katsunobu insisted that "no exchange rate target was discussed," but revealed that there will be "close dialogue on the exchange rate issue" during the trade negotiations. The US did not directly accuse Japan of manipulating the exchange rate, but Trump has long held the view that "the yen is deliberately devalued." NLI Research Institute experts warned: If trade negotiations are blocked, the exchange rate issue will immediately surface. (Huitong Finance)

Data:

Today, the UK's April CBI retail sales difference and other data will be released. In addition, it is worth noting that Canada is holding a federal election.

Crude Oil:

As of 11:47, crude oil futures rose slightly, with US oil up 0.33% and Brent oil up 0.26%. The uncertainty of the trade situation continues to cloud the global growth and fuel demand outlook, while the prospect of OPEC+ production increases has added to market gloom, limiting oil price gains.

The market expects that some members of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, will recommend that the group accelerate production increases for the second consecutive month at the May 5 meeting.

US energy services company Baker Hughes said in its closely watched report on Friday that US energy companies added oil and gas rigs for the second consecutive week, the first time since February. Data showed that as of the week of April 25, the total number of US oil and gas rigs, a leading indicator of future production, increased by 2 to 587. (Webstock Inc.)

Spot Market Overview:

► Pre-holiday stockpiling is moderate, suppliers insist on high premiums for shipments [SMM South China Copper Spot]

► The price spread between futures contracts widened, downstream buying interest was poor, and spot premiums/discounts fell [SMM North China Copper Spot]

► The spot-futures price spread narrowed, some suppliers lowered premiums, downstream pre-holiday rigid demand stockpiling supported transaction resilience [SMM Daily Review]

Other metal spot midday reviews will be updated later, please refresh to view~