Base metals generally rose, with SHFE lead and silicon metal leading the gains. Polysilicon fell nearly 2%, and most ferrous metals series prices fell [SMM Midday Review]

SMM June 25 News:

Metal Market:

As of the midday close, domestic base metals generally rose, with SHFE nickel up 0.65%. SHFE copper rose 0.19%, while SHFE aluminum fell slightly. SHFE zinc rose 0.21%, and SHFE tin fell 0.33%. SHFE lead rose 1.15%.

In addition, the main continuous futures contract for foundry aluminum rose 0.15%, while the main continuous contract for alumina fell 0.03%. Lithium carbonate rose 0.5%, silicon metal rose 1.01%, and polysilicon fell 1.88%.

The ferrous metals series mostly fell, with iron ore down 0.85%, rebar down 0.47%, and HRC down 0.35%. Stainless steel rose 0.77%. In terms of coking coal and coke: coking coal fell 0.69%, and coke fell 0.48%.

In overseas metal markets, as of 11:39 a.m., LME metals were nearly all up, with LME copper up 0.39%, LME nickel up 0.27%, LME zinc up 0.43%, LME tin up 0.25%, LME lead up 0.35%, and LME aluminum down 0.23%.

In precious metals, as of 11:39 a.m., COMEX gold rose 0.33%, and COMEX silver rose 0.51%. Domestically, SHFE gold fell 0.85%, and SHFE silver fell 0.79%. According to a report from the Official Monetary and Financial Institutions Forum (OMFIF), after excluding central banks planning to reduce their gold holdings, one-third of central banks managing a total of $5 trillion plan to increase their gold holdings in the next one to two years, the highest level in at least five years.

As of the midday close, the most-traded contract for the European container shipping futures fell 3.27%, closing at 1,736.6.

As of 11:39 a.m. on June 25, midday futures market movements for some contracts:

》SMM Metal Spot Prices on June 25

Spot and Fundamentals

Silver: With the ceasefire in the Israel-Iran conflict, global risk appetite shifted, leading to a simultaneous pullback in gold and silver prices overnight. Silver prices slightly rebounded during the day but still moved lower compared to yesterday's center. According to SMM, suppliers holding warrants for national standard silver ingots in cash spot transactions in the Shanghai area... 》Click for details

Macro Front

Domestic:

[Ministry of Finance: Timely launch incremental reserve policies based on changing situations] According to Xinhua News Agency, on the 24th, Minister of Finance Lan Fo'an, on behalf of the State Council, presented a report on the 2024 central final accounts to the 16th session of the Standing Committee of the 14th National People's Congress. According to the report, new progress was made in various aspects of fiscal reform and development in 2024, and the overall situation of the central final accounts was good. The report indicated that in the next step, a more proactive fiscal policy will be fully utilized, and incremental reserve policies will be timely launched based on changing situations, focusing on stabilizing employment, enterprises, markets, and expectations, and fully consolidating the fundamentals of economic development and social stability.

[PBOC's reverse repo operations achieve a net injection of RMB 209 billion on the day]The PBOC conducted reverse repo operations worth RMB 365.3 billion with a 7-day maturity today. As reverse repo operations worth RMB 156.3 billion with a 7-day maturity matured today, a net injection of RMB 209 billion was achieved on the day.

►On June 25, the central parity rate of the RMB against the US dollar in the interbank foreign exchange market was 7.1668 RMB per US dollar.

US dollar:

As of 11:39, the US dollar index fell by 0.06% to 97.91. The US dollar index hovered near a one-week low. US consumer confidence unexpectedly declined in June due to growing concerns among households about job opportunities, indicating once again that labour market conditions are weakening amid rising economic uncertainty caused by the Trump administration's tariffs. Fed Chairman Powell told lawmakers on Tuesday that tariff increases this summer could start pushing up inflation, which would be a critical period for the Fed to consider interest rate cuts. Cleveland Fed President Beth Hammack said on Tuesday that she saw no urgent need to cut interest rates amid significant uncertainty about the impact of trade tariffs on inflation. The current inflation rate remains above the Fed's target. US federal funds rate futures traders currently expect 61 basis points of interest rate cuts in 2025, with the first cut expected in September.

Other currencies:

Bank of Japan board member Naoki Tamura said that the rise in fresh food prices can no longer be described as temporary, and that relevant developments must be closely monitored. Action may be taken if the risk of price increases rises. Given the upside risks to prices, there is a strong possibility that Japan will achieve its 2% target earlier. If the risk of price increases intensifies, the Bank of Japan may face a situation where it needs to decisively raise interest rates, even if uncertainty is high. (Cailian Press)

Data:

Today, revised figures for the annualized total of US building permits in May, the annualized total of new home sales in the US after seasonal adjustment in May, New Zealand's trade balance in May, Switzerland's Credit Suisse/CFA Economic Expectations Index for June, Australia's ANZ Consumer Confidence Index for the week ending June 22, Australia's annual CPI rate after seasonal adjustment in May, and other data will be released. In addition, FOMC permanent voter and New York Fed President John Williams will deliver a speech, Fed Chairman Powell will testify before the Senate Committee on the semi-annual monetary policy report, NATO heads of state and government will hold a summit in The Hague from June 24 to 25, with Trump confirming his attendance, and the Bank of Japan will release a summary of opinions from its June monetary policy meeting.

Crude Oil:

Both WTI and Brent futures rose. As of 11:39, WTI was up 1.41%, and Brent was up 1.33%. After a sharp decline in the past two trading days, oil prices took a brief respite as the market assessed the stability of the ceasefire agreement between Iran and Israel.

The market is awaiting the US government's domestic crude oil and fuel inventory data to be released on Wednesday. An extended survey suggests that US crude oil inventories may have declined last week, while gasoline and distillate inventories may have increased. On average, surveyed analysts expect US crude oil inventories to have decreased by approximately 800,000 barrels in the week ending June 20. Data released by the American Petroleum Institute (API) showed that US crude oil and distillate inventories declined last week, while gasoline inventories rose. The report indicated that US crude oil inventories decreased by 4.23 million barrels, distillate inventories decreased by 1.03 million barrels, and gasoline inventories increased by 764,000 barrels in the week ending June 20.

The Iraqi Ministry of Oil stated in a press release that Iraq's total oil exports in May amounted to 101.6 million barrels. (Webstock Inc.)

Spot Market Overview:

►Spot premiums/discounts stopped falling, and market transactions were sluggish [SMM North China Spot Copper]

►Shanghai Zinc: Futures market oscillated, and Shanghai premiums held steady [SMM Midday Review]

►Ningbo Zinc: Downstream orders were weak, and transactions did not improve [SMM Midday Review]

►Silver prices were in the doldrums, and spot market transactions slightly improved [SMM Daily Review]

Other metal spot midday reviews will be updated later. Please refresh to view~