Base metals generally declined, with alumina and lithium carbonate falling nearly 1%, while ferrous metals series all rose [SMM Midday Review]

SMM News on June 16:

Metal Market:

As of the midday close, domestic base metals generally declined, with SHFE copper slightly up by 0.08%, SHFE aluminum down by 0.27%, SHFE zinc down by 0.62%, SHFE lead and SHFE tin slightly down, and SHFE nickel down by 0.28%.

In addition, the main continuous futures contract for foundry aluminum rose by 0.13%, while the main continuous contract for alumina fell by 0.97%. Lithium carbonate fell by 0.9%, silicon metal fell by 0.48%, and polysilicon rose by 1.47%.

The ferrous metals series all rose, with iron ore up by 0.21%, rebar up by 0.91%, and HRC up by 0.88%. Stainless steel rose by 0.2%. In terms of coking coal and coke: coking coal rose by 1.87%, and coke rose by 1.11%.

In the overseas metal market, as of 11:45, LME metals all declined, with LME copper, LME tin, LME lead, and LME nickel all falling within 0.1%. LME aluminum fell by 0.8%, and LME zinc fell by 0.34%.

In precious metals, gold prices rose, approaching a two-month high, as escalating conflicts between Israel and Iran sparked concerns about a broader regional conflict, prompting the market to seek safe-haven assets. As of 11:45, COMEX gold rose by 0.01%, reaching an intraday high of $3,476.3/oz, refreshing the highest level since April 22; COMEX silver fell by 0.32%. Domestically, SHFE gold rose by 0.55%, and SHFE silver fell by 0.07%.

As of the midday close, the most-traded contract for the European container shipping index fell by 1.81%, closing at 2077.2.

As of 11:45 on June 16, some midday futures market movements:

》SMM Metal Spot Prices on June 16

Spot and Fundamentals

Copper: Today, spot #1 copper cathode in Guangdong was quoted at a discount of 50 yuan/mt to a premium of 50 yuan/mt against the front-month contract, with an average premium of 0 yuan/mt, down 25 yuan/mt from the previous trading day. SX-EW copper was quoted at a discount of 110 yuan/mt to a discount of 90 yuan/mt, with an average discount of 100 yuan/mt, down 10 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 78,590 yuan/mt, down 285 yuan/mt from the previous trading day, and the average price of SX-EW copper was 78,490 yuan/mt, down 270 yuan/mt from the previous trading day. Spot Market: Guangdong's inventory increased significantly after the weekend, mainly due to weak downstream purchasing sentiment amid a large price spread between futures contracts and the approaching delivery date...》Click for details

Macro Front

Domestic Aspect:

[National Bureau of Statistics (NBS): Industrial Added Value Above Designated Size Grew 5.8% YoY in May, Overall National Economy Remained Stable with Steady Progress] The NBS showed that in May, the industrial added value above designated size actually grew by 5.8% YoY. On a MoM basis, the value-added of industrial enterprises above designated size increased by 0.61% in May compared to the previous month. From January to May, the value-added of industrial enterprises above designated size increased by 6.3% YoY. By industry, in May, 35 out of 41 major industry categories maintained YoY growth in value-added. Specifically, the coal mining and washing industry grew by 5.5%, the oil and natural gas extraction industry by 5.3%, the agricultural and sideline food processing industry by 7.6%, the liquor, beverage, and refined tea manufacturing industry by 4.1%, the textile industry by 0.6%, the chemical raw material and chemical product manufacturing industry by 5.9%, the non-metallic mineral products industry declined by 0.6%, the ferrous metal smelting and rolling processing industry by 4.8%, the non-ferrous metal smelting and rolling processing industry by 8.1%, the general equipment manufacturing industry by 6.3%, the special equipment manufacturing industry by 2.3%, the automobile manufacturing industry by 11.6%, the railway, shipbuilding, aerospace, and other transportation equipment manufacturing industry by 14.6%, the electrical machinery and equipment manufacturing industry by 11.0%, the computer, communication, and other electronic equipment manufacturing industry by 10.2%, and the electricity, heat production, and supply industry by 2.0%. Overall, in May, with the continuous release of the combined effects of policies, the effects of stabilizing the economy and promoting development became evident. The national economy maintained a generally stable and steady development trend with progress, fully demonstrating the resilience and vitality of China's economy. However, it should also be noted that there are many external unstable and uncertain factors, and the endogenous momentum for expanding domestic demand still needs to be strengthened. The foundation for the sustained rebound and improvement of the economy still needs to be consolidated.》Click for details

The People's Bank of China conducted 242 billion yuan of 7-day reverse repo operations today, with an operating interest rate of 1.40%, unchanged from the previous rate. As 173.8 billion yuan of 7-day reverse repos matured today, a net injection of 68.2 billion yuan was achieved.

►On June 16, the central parity rate of the RMB against the US dollar in the inter-bank foreign exchange market was 7.1789 yuan per US dollar.

US dollar aspect:

As of 11:45, the US dollar index rose by 0.22% to 98.34. The US Federal Reserve is scheduled to hold a policy meeting from June 17 to 18 and make a decision on Wednesday. Although it is widely expected that the US Fed will keep interest rates stable, the market is eagerly anticipating signals of possible interest rate cuts in the coming months.

Data aspect:

Today, data such as the total reserve assets of the Eurozone in May, the New York Fed's Empire State Manufacturing Survey for June, and the New York Fed's Empire State Manufacturing Survey's six-month outlook index for June will be released. In addition, the New York Fed's Empire State Manufacturing Survey's six-month outlook index for June.

Crude oil aspect:

Both crude oil futures continued to climb. As of 11:45, US crude oil rose by 0.67%, and Brent crude oil rose by 0.59%. The intensifying conflict between Israel and Iran has fueled market concerns that tensions in the Middle East could escalate across the region and severely disrupt oil exports from the Middle East, thereby supporting oil prices.

The latest developments have heightened market fears of potential blockages in the Strait of Hormuz, a vital shipping lane. Approximately one-fifth of the world's total oil consumption, or around 18-19 million barrels per day of oil, condensate, and fuel oil, passes through the Strait of Hormuz. (Webstock Inc.)

Spot Market Overview:

►With delivery approaching and a significant price spread between futures contracts, downstream users exhibit strong wait-and-see sentiment. [SMM Spot Copper in South China]

►Market activity cools on delivery day, with sluggish trading performance. [SMM Spot Copper in North China]

►[SMM Nickel Midday Review] On June 16, nickel prices declined slightly, with total retail sales of consumer goods in May up 6.4% YoY.

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