US dollar declines, metals generally fall, alumina rises over 5%, lithium carbonate, coking coal and coke drop over 2% [SMM Midday Review]

SMM May 19:

Metal Market:

As of the midday close, domestic base metals closed lower across the board, with SHFE zinc, SHFE aluminum, SHFE lead, and SHFE tin all falling within 0.4%. SHFE copper dropped 0.87%, and SHFE nickel fell 0.47%.

In addition, alumina rose 5.06%. Lithium carbonate fell 2.17%, silicon metal declined 1.69%, and polysilicon remained flat at 36,960 yuan/mt.

The ferrous metals series all closed in the red, with iron ore down 1.17% and stainless steel down 0.19%. Both rebar and HRC fell over 1%. For coking coal and coke: coking coal dropped 2.31%, and coke fell 2.27%.

In overseas metal markets, as of 11:52 a.m., LME metals showed mixed performance. LME copper, LME lead, and LME tin all rose within 0.2%, while LME aluminum fell 0.4%, LME zinc dropped 0.15%, and LME nickel declined 0.12%.

In precious metals, as of 11:52 a.m., COMEX gold rose 1.11%, and COMEX silver increased 0.51%. Domestically, SHFE gold rose 0.46%, and SHFE silver gained 0.3%.

As of the midday close, the most-traded contract for the Europe-to-Asia container shipping futures rose 2.19% to 2,305.7 points.

As of 11:52 a.m. on May 19, midday futures market movements for some contracts:

》SMM Metal Spot Prices on May 19

Spot and Fundamentals

Aluminum: In terms of inventory, according to SMM's domestic aluminum ingot inventory data, domestic aluminum ingot inventory stood at 585,000 mt on May 19, up 4,000 mt from the previous day. In the short term, with high aluminum prices and an increase in inventory arrivals, market transactions have slowed, and there is insufficient upward momentum for premiums. It is expected that premiums and discounts will remain in the doldrums in the following period... 》Click for details

Macro Front

Domestic Aspects:

[National Bureau of Statistics (NBS): In the next stage, a significant reduction in tariffs between China and the US will benefit trade growth for both sides]① Fu Linghui, spokesperson for the NBS, stated that the fundamental factors supporting China's economic improvement remain unchanged, and there are many favorable conditions for sustained economic recovery. ② In the next stage, it is necessary to implement special actions to boost consumption, continue to enhance residents' consumption capacity, increase the supply of high-quality goods and services, improve the consumption environment, and better unleash consumption potential. ③ In the next stage, a significant reduction in tariffs between China and the US will benefit trade growth for both sides and also contribute to the global economic recovery. 》Click for details

[NBS: China's national economy withstood pressure and maintained stable growth in April, with industrial added value above designated size up 6.1% YoY]In April, China's national economy withstood pressure and maintained stable growth, continuing the trend of new and positive developments. In April, the value-added industrial output of enterprises above designated size nationwide increased by 6.1% YoY and 0.22% MoM. By industry sector, the value-added output of the mining industry increased by 5.7% YoY, that of the manufacturing sector grew by 6.6%, and that of the production and supply of electricity, heat, gas, and water rose by 2.1%. The value-added output of the equipment manufacturing sector increased by 9.8% YoY, and that of the high-tech manufacturing sector grew by 10.0%, which were 3.7 and 3.9 percentage points faster, respectively, than the growth rate of the value-added industrial output of all enterprises above designated size.By economic type, the value-added output of state-controlled enterprises increased by 2.9% YoY; that of joint-stock enterprises grew by 6.6%, that of foreign-invested enterprises and enterprises invested in by Hong Kong, Macao, and Taiwan increased by 3.9%; and that of private enterprises grew by 6.7%. By product, the production of 3D printing equipment, industrial robots, and NEVs increased by 60.7%, 51.5%, and 38.9% YoY, respectively. From January to April, the value-added industrial output of enterprises above designated size nationwide increased by 6.4% YoY.In April, the total retail sales of consumer goods reached 3,717.4 billion yuan, up 5.1% YoY...》Click for details

[The CSRC will soon introduce policy measures to deepen reforms of the STAR Market and ChiNext. Currently, the valuation level of A-shares remains relatively low.]The Shenzhen Stock Exchange (SZSE) hosted the two-day 2025 Global Investors Conference in Shenzhen from May 19 to 20. Themed "New Quality Productive Forces: New Investment Opportunities in China - Shenzhen's Open and Innovative Market," the conference showcased the investment value of Chinese assets and the A-share market through keynote speeches, panel discussions, company roadshows, and other formats. Li Ming, Vice Chairman of the China Securities Regulatory Commission (CSRC), stated at the conference that the current valuation level of A-shares remains relatively low, with the CSI 300's price-to-earnings ratio at 12.6, significantly lower than the major indices of overseas markets, further highlighting its allocation value. Li Ming said that in the near future, the CSRC will also introduce policy measures to deepen reforms of the STAR Market and ChiNext, providing more suitable and inclusive institutional support for the innovative growth of enterprises.》Click for details

The People's Bank of China (PBOC) conducted 135 billion yuan of 7-day reverse repo operations today, with an operating interest rate of 1.40%, unchanged from the previous rate. As 43 billion yuan of 7-day reverse repos matured today, a net injection of 92 billion yuan was achieved.

►The central parity rate of the RMB exchange rate in the inter-bank foreign exchange market on May 19 was 7.1916 RMB per US dollar.

US dollar:

As of 11:52, the US dollar index continued its decline from the previous trading day, falling by 0.13% to 100.83.

Other currencies:

Junichi Ueda, Deputy Governor of the Bank of Japan (BOJ), stated during a parliamentary hearing on Monday that if the Japanese economy reaccelerates and core inflation steadily approaches the 2% target, the BOJ will continue to raise interest rates. He emphasized that the outlook for global trade policies is highly uncertain, and adjustments to monetary policy will depend on whether economic and price performances align with central bank forecasts, rather than following a predetermined path. (Huitong Finance)

Macro Aspects:

Today, data including China's total electricity consumption for April (monthly), the final unadjusted year-on-year harmonized CPI for the Eurozone in April, and the final unadjusted year-on-year core harmonized CPI for the Eurozone in April will be released. Additionally, attention should be paid to: NVIDIA CEO Jensen Huang's attendance and speech at Computex Taipei, where he will share the latest progress and breakthroughs in "AI and accelerated computing technology"; a speech by US Fed Vice Chair Jefferson; and a speech by FOMC permanent voter and New York Fed President Williams.

Crude Oil:

As of 11:52, crude oil futures dropped slightly, with US crude oil down 0.42% and Brent crude oil down 0.43%. (Webstock Inc.)

Spot Market Overview:

►Downstream restocking sentiment improves, market trading activity heats up [SMM North China Spot Copper]

►Social inventory experiences slight buildup, premium expectations weaken, market trading remains moderate [SMM Spot Aluminum Midday Review]

►[SMM Daily Nickel Sulphate Review] On May 19, demand for nickel salts weakens

►Silver prices consolidate, downstream players adopt a wait-and-see approach, market trading remains slightly sluggish [SMM Daily Review]

Midday reviews for other metal spot markets will be updated later. Please refresh to view~