SMM5, March 27: most of the outer metal market was red yesterday, and Lun Copper rose on Wednesday as a possible labor strike at the world's largest copper mine in Chile posed a threat to already low global copper supplies. The union representing workers at BHP's Escondida (Escondida) and Spence copper mines rejected the company's contract offer and called on members to go on strike from Thursday. Today, the whole LME metal market is green. As of 09:30, Lun Copper and Lun Aluminum fell nearly 0.3%, Lun lead fell nearly 0.7%, Lun Zinc fell nearly 0.1%, Lun Nickel fell nearly 0.6%, and Lunxi was flat. On the domestic side, international copper and Shanghai copper fell nearly 0.5%, Shanghai aluminum rose nearly 0.5%, Shanghai lead fell nearly 0.1%, Shanghai zinc fell nearly 0.2%, Shanghai nickel rose nearly 0.4%, and Shanghai tin rose nearly 0.9%.
On the copper side, on the macro front, the overnight strength of the US dollar, the steady rise in US bond yields, the slowing of the epidemic in the United States and the vaccination of nearly half of the people have made investors optimistic about the prospects for economic recovery. Fed Governor Quarles believes that inflation is over 2% in the near future. It is temporary and said that if the economic outlook is good, it is crucial to discuss the reduction of QE at future meetings, and that mortgage-backed securities will be a point in the bond-buying debate.
[minutes of SMM Morning meeting] the US index superimposed US bond yields pulled up the weak operation of copper in Shanghai overnight.
In terms of aluminum, from a macro point of view, five departments, including the National Development and Reform Commission, interviewed key major companies over the weekend, and the domestic macro atmosphere quickly emptied, and Shanghai aluminum prices suffered a significant setback in early trading on Monday. Overseas, the initial value of the composite PMI of the United States Markit hit a record high, followed by a strong economic recovery from the epidemic, while the market was worried about the outlook for inflation.
[minutes of SMM Morning meeting] affected by the rebound of RMB exchange rate and the withdrawal of Shanghai aluminum ratio, the import window of primary aluminum was closed again in the short term.
In terms of lead, overnight Shanghai lead fluctuated widely, closed down slightly, and bears tried to increase their positions. Yesterday's lead consolidation around 15300 yuan / ton, there are many sources of goods in the market, the price of the holder follows the market, the storage enterprises purchase only on demand, and the transaction of bulk orders in the trade market is light. During the day, we still need to pay attention to the 40-day moving average under Shanghai lead, 15300 yuan / ton first-line support. It is expected that the average price of SMM1# lead today.
[minutes of SMM lead Morning meeting] overnight lead strengthened, Shanghai lead stabilized, spot market still focused on rigid demand and limited purchases.
In terms of zinc, overnight Shanghai zinc recorded a small overcast line, the upper 5 / 10 moving average was suppressed, and the lower 40-day moving average provided support. Overnight macro bearish sentiment continued, supply-side disturbances continued, spot trading was dominated by traders, downstream delivery sentiment was more cautious, and overall market trading was weak. It is expected that the short-term zinc price will continue the range shock model.
[minutes of SMM Zinc Morning meeting] the government's efforts show that the zinc price continues to fluctuate in the range.
In terms of black series, the thread fell nearly 1.5%, the hot coil fell nearly 1.7%, the coking coal rose nearly 0.6%, the coke rose nearly 0.3%, the iron ore fell nearly 1.7%, and the stainless steel rose nearly 0.2%. In terms of threads, according to the spot price statistics of SMM port, the price difference between high and middle products is still about 250 yuan / ton, which is not much different from that in the same period last month. On the other hand, the price difference between medium and low products has increased by 100 yuan to 350 yuan / ton compared with the same period last month, and the performance-to-price ratio of low-grade ore has increased significantly. According to the calculation of SMM 218.15 US Gold Mine, at present, the thread profit of domestic long-process steel mills has been almost left, and the profit of hot-rolled coil is only 224 yuan / ton, the profits of steel mills have shrunk greatly, and the demand for low-grade ore is expected to increase.
[summary of SMM Morning meeting] Thread price continues to be weak, shock hot roll price is expected to stabilize
The previous period of crude oil fell nearly 0.3%, international oil prices closed higher on Wednesday, and the decline in crude oil stocks in the United States strengthened expectations of improved demand ahead of the summer driving peak and outweighed fears that Iran's possible resumption of supply would lead to a supply glut.
In terms of precious metals, Shanghai gold fell nearly 0.4%, while Shanghai silver fell nearly 1.9%. Comex gold futures rose slightly on Wednesday, holding the $1900 per ounce mark, as the Federal Reserve / FED position was expected to continue to be dovish, but the rebound in US dollar and US Treasury bond yields hit the attractiveness of gold.
As of 09:30, the status of contracts in the metals and crude oil markets:
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