Domestic market outperforms overseas market in metals; cast aluminum rises over 4% on its listing debut, SHFE zinc drops over 1%, silicon metal leads gains [SMM Midday Review]

SMM, June 10:

Metal Market:

As of the midday close, domestic base metals showed mixed performance. SHFE copper rose by 0.57%, SHFE zinc fell by 1.22%, SHFE aluminum dropped by 0.12%, SHFE lead increased by 0.87%, SHFE tin gained 0.44%, and SHFE nickel declined by 0.89%.

In addition, the main continuous futures contract for foundry aluminum surged on its first trading day, closing up 4.63% by midday. Alumina rose by 0.38%. Lithium carbonate increased by 0.53%, silicon metal rose by 1.16%, and polysilicon fell by 0.22%.

The ferrous metals series mostly rose, with iron ore down by 0.21%, rebar up by 0.13%, and HRC up by 0.19%. Stainless steel fell by 0.99%. For coking coal and coke: coking coal rose by 0.7%, and coke increased by 0.52%.

In overseas metal markets, as of 11:46, LME metals were mostly down, with LME zinc falling by 0.3%, LME copper down by 0.37%, LME aluminum dropping by 0.36%, LME lead on par with $1,986.5/mt, LME tin declining by 0.23%, and LME nickel falling by 0.23%.

In precious metals, as of 11:46, COMEX gold fell by 0.78%, and COMEX silver dropped by 0.4%. Domestically, SHFE gold fell by 0.55%, SHFE silver rose by 0.89%, and SHFE silver hit a new high since listing in the night session, reaching 9,020 yuan/kg.

As of the midday close, the most-traded contract for the Europe Containerized Freight Index was on par with 2,061.8.

As of 11:46 on June 10, midday futures market movements for some contracts:

》SMM Metal Spot Prices on June 10

Spot and Fundamentals

Aluminum: This morning, the center of SHFE aluminum prices dropped to around 20,500 yuan/mt before reversing in a V-shaped trend, rising again above 20,100 yuan/mt. In east China, after the futures market fell, purchasing sentiment improved, and major players purchased in the market. The market traded at parity to a premium of 10 yuan/mt against SMM transactions, with premiums and discounts firming. Today, SMM A00 aluminum was reported at 20,160 yuan/mt, down 50 yuan/mt from the previous trading day, with a premium of 70 yuan/mt against the June contract, unchanged from the previous trading day... 》Click for details

Macro Front

Domestic:

[National Development and Reform Commission (NDRC): Will propose a batch of major strategic tasks, policy initiatives, and engineering projects in the field of people's livelihood]The State Council Information Office held a press conference at 10 a.m. today. Xiao Weiming, Deputy Secretary General of the National Development and Reform Commission, and relevant officials from the Ministry of Education, Ministry of Civil Affairs, Ministry of Finance, Ministry of Human Resources and Social Security, and National Health Commission introduced policies to further safeguard and improve people's livelihood and answered questions from reporters. Xiao Weiming, Deputy Secretary General of the National Development and Reform Commission (NDRC), stated at a press conference held by the State Council Information Office that the NDRC will implement the decisions and arrangements of the CPC Central Committee. Based on thorough surveys, it will collaborate with various parties to formulate the "15th Five-Year Plan," proposing major strategic tasks, policy initiatives, and engineering projects in the field of people's livelihood, and integrating the construction of people's livelihood into the national development blueprint for the "15th Five-Year Plan." 》Click for details

[PBOC's Open Market Operations Net Withdraw 255.9 Billion Yuan Today]The PBOC conducted 198.6 billion yuan in 7-day reverse repo operations today. As 454.5 billion yuan in 7-day reverse repos matured today, a net withdrawal of 255.9 billion yuan was realized on the day.

►The central parity rate of the RMB exchange rate in the interbank foreign exchange market on June 10 was 7.1840 RMB per US dollar.

US dollar:

As of 11:46, the US dollar index rose by 0.13%, reporting at 99.15. A report released by the Federal Reserve Bank of New York on Monday showed that US citizens' anxiety about the future inflation path eased in May, and their outlook on personal financial conditions became more optimistic. The market is awaiting the US inflation data to be released on Wednesday, which may adjust expectations regarding the timing of the US Fed's interest rate cut. Meanwhile, the market is also focusing on the ongoing China-US trade talks in London.

Other currencies:

Kazuo Ueda, Governor of the Bank of Japan, stated that if the economy and prices face strong downward pressure, the Bank of Japan has limited room to support the economy through interest rate cuts, with the short-term interest rate currently maintained at 0.5%. "If we have sufficient confidence that the underlying inflation rate is close to or fluctuating around 2%, we will raise interest rates." (Caijing)

Data:

Today, data such as China's M2 money supply annual growth rate for May, China's total social financing for the year to date in May, China's new RMB loans for the year to date in May, the UK's unemployment rate for April (ILO standard), the UK's average weekly earnings including bonuses for the three months to April (annual growth rate), Australia's ANZ consumer confidence index for the week ending June 8, Switzerland's consumer confidence index for May (seasonally adjusted), and the Eurozone's Sentix investor confidence index for June will be released. In addition, the deadline for the EU's public consultation is June 10, 2025. This date marks the final window of peace before the EU considers imposing retaliatory tariffs on US goods worth up to 95 billion euros. He Lifeng visited the UK from June 8 to 13 and held the first meeting of the China-US economic and trade consultation mechanism.

Crude oil:

As of 11:46, crude oil futures fluctuated rangebound, with US oil up by 0.11% and Brent oil up by 0.18%. The market is awaiting the outcome of Sino-US negotiations, which may help ease trade tensions and improve fuel demand.

Additionally, a survey found that OPEC's oil production growth in May was lower than planned, as Iraq further cut production to compensate for earlier overproduction, while Saudi Arabia and the UAE also increased production by less than their quotas. (Webstock Inc.)

Spot Market Overview:

►Copper prices rise, but downstream players are reluctant to rush to buy amid continuous price rise and restock; overall trading activity is weaker than yesterday. [SMM South China Spot Copper]

►Operating rates of processing enterprises recover, and market trading activity improves. [SMM North China Spot Copper]

►The center of gravity pulls back in the morning session, and just-in-time procurement in the market improves. [SMM Aluminum Spot Midday Review]

►Shanghai zinc: futures market declines significantly, and premiums struggle to rise. [SMM Midday Review]

►The pace of production resumptions in Myanmar's Wa region is slow; SHFE tin prices may fluctuate rangebound in the afternoon session. [SMM Tin Midday Review]

►[SMM Nickel Midday Review] On June 10, nickel prices fell by over 1,000 yuan, and China's CPI index declined by 0.2% MoM.

Midday reviews of other metal spot prices will be updated later. Please refresh to view.