[SMM Metal Breakfast] US stocks hit new highs across the domestic metal market * large-scale import mode of recycled copper opens * Silicon prices start a downward trend

The domestic metal market rose across the board, iron ore rose 3.02%, US stocks hit a new high.

[macro outlook] focus on non-farm payrolls and December unemployment rate after the December quarterly adjustment in the United States

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The outer disk metal market rose yesterday, with Lun copper up 1.23%, Lun aluminum down 0.17%, Lunzn zinc up 0.8%, Lunni up 1.97%, Lunxi up 0.33%, and Lunxi down 0.73%. In the domestic market, international copper rose 1.59%, Shanghai copper rose 1.61%, Shanghai aluminum rose 1.18%, Shanghai zinc rose 1.05%, Shanghai lead rose 0.7%, Shanghai nickel rose 1.61%, Shanghai tin fell 0.44%, iron ore rose 3.02%, thread rose 1.47%, and stainless steel rose 1.94%.

The dollar index rose to welcome the first sun of the week, the US political situation gradually became clear, and Congress confirmed that Biden was elected president.

In terms of US stocks, the three major stock indexes all hit intraday and closing highs, and the Nasdaq broke through the 13000-point mark for the first time in history. On the news, the US Congress confirmed that Biden was elected president, and Trump promised that the transition of power would take place in an orderly manner. Democrats control the White House and both houses of Congress, and the market expects a larger fiscal stimulus and government spending plan.

In terms of crude oil, oil prices rose, and US oil rose nearly 1%, as the stock market strengthened and was not affected by the political upheaval in the United States. The superposition of the U.S. Congress confirmed that Biden was elected president, making the market optimistic that the Biden administration will implement more fiscal stimulus measures. Saudi Arabia, the world's largest oil exporter, has supported oil prices by promising to cut production by another 1 million b / d in February and March.

LME inventory

Macro focus

Market news: Trump has prepared a pardon list, including his aides, relatives and possibly even himself, and it is reported that White House employees may also be granted an early pardon.

[us Congress confirms: Biden wins] according to US media, the US Congress counted and confirmed the results of the electoral votes in the 2020 presidential election at a joint meeting held on the same day. Vice President John Pence, president of the U.S. Senate, just announced Biden's victory at a joint meeting. He said Biden "got 306 votes" and Trump "232 votes".

[us acting Defense Secretary: strongly condemns the Capitol protest conflict incident] acting US Defense Secretary Christopher Miller (Christopher Miller) issued a statement on January 7 local time, saying that the US Capitol protest conflict incident runs counter to the purpose of the US Constitution and should be strongly condemned.

[the cumulative number of confirmed cases of COVID-19 in the United States is more than 21.48 million, and the cumulative number of deaths is 364000.] according to the statistics of Johns Hopkins University at 16:22 on January 7th (05:22 on the 8th), the number of confirmed cases in COVID-19 in the United States has exceeded 21.48 million, reaching 21481788, and the cumulative number of deaths has exceeded 364000, reaching 364063.

[Ministry of Commerce: stabilizing foreign trade will focus on implementing three plans] Minister of Commerce Wang Wentao talked about the focus of business work in 2021. In terms of stabilizing foreign trade, the Ministry of Commerce will focus on implementing three plans: the excellent import and export plan, the construction of a national import trade innovation demonstration zone, the cultivation of a new model of foreign trade new business type, the plan of trade and industrial integration, and the identification of a number of bases for the transformation and upgrading of foreign trade. we will promote pilot projects for the innovation and development of trade in services. The smooth trade plan, build the trade smooth working group with "Belt and Road Initiative" related countries, expand the scale of overseas warehouses, and strengthen the construction of international marketing system.

[the deficit ratio of fiscal policy space is limited or still exceeds 3%] the Central Economic work Conference proposed that this year's proactive fiscal policy should improve quality, efficiency and sustainability. Experts believe that a "more sustainable" fiscal policy means not only maintaining moderate expenditure intensity, but also requiring more accurate and effective fiscal policy and capital use. In order to guard against "new risk challenges", this year's fiscal policy space may be limited. Taking into account the need to ensure moderate expenditure intensity this year, the broad deficit ratio may be reduced this year, but the deficit ratio may still be no less than 3%.

[Shijiazhuang: all vehicles entering and leaving the city must enter and exit with vouchers] Shijiazhuang Radio and Television Station issued a notice on January 7 on epidemic prevention materials and transportation guarantee work during the epidemic prevention and control period. The circular shows that vehicles that must enter and leave the urban area of Shijiazhuang due to the protection of epidemic prevention and control, urban operation, production and life, and the transportation of epidemic prevention materials, will issue passes in accordance with the relevant regulations of the municipal epidemic prevention headquarters and enter and exit with permits.

Today's focus

[SMM analysis: large-scale import mode of recycled copper is on! Can it meet the needs of the rapid expansion of its processing and smelting capacity? With the domestic processing and smelting capacity of recycled copper in the stage of rapid expansion, the potential demand for scrap copper is still huge. After the government liberalized the import qualification of recycled copper (brass) raw materials and did not set quantity restrictions, it has greatly stimulated the enthusiasm of enterprises to import, and it is expected that scrap copper imports will be in 2021. "check the details.

[SMM analysis: the consumption seasonal decline industry enters the accumulation cycle, the center of gravity of aluminum prices will move down before the Spring Festival] recently, overseas aluminum prices have been affected by the weakening of the US index and the boost of oil prices, and overseas fundamentals are expected to be stronger than domestic and stronger than domestic performance in the first quarter. As far as the domestic market is concerned, Shanghai Aluminum has obviously weakened recently and differentiated from other metals and Lun Aluminium. From the market trend, the futures monthly spread has narrowed, and the near strong and far weak structure has weakened, of which 03 contract and 04 contract once turned into contango structure. "View details

[SMM survey: operation rate of recycled aluminum alloy enterprises in various regions in December 2020] SMM investigated and analyzed the operating rate of recycled aluminum alloy enterprises in various regions of the country in December. The overall operating rate fell by 3.8% in December. "check the details.

[SMM data: the weekly inventory of electrolytic aluminum increased from 51000 tons to 664000 tons.] on January 7, SMM statistics domestic electrolytic aluminum social inventory of 664000 tons, weekly accumulation of 51000 tons, more than the arrival of goods, mainly including imports and major producing areas such as Xinjiang, Qinghai and other aluminum ingots. "View details

[SMM data: China's primary lead production decreased slightly in December compared with the same period last year, recording a positive increase over the same period last year.] in December 2020, China's electrolytic lead production was 286000 tons, down 1.3% from the previous month and up 2.4% from the same period last year. The cumulative output in 2020 increased by 4.42% compared with the same period last year. "View details

[annual Review: zinc oxide operating rate continues to rise from an all-time low. The price increase of up to 30% is mainly due to the fact that tires are "running too fast"? Looking forward to 2021, SMM believes that the consolidation of the zinc oxide industry is still continuing, the industry concentration is expected to further increase, and the industrial surplus is expected to ease, while there is still room for end consumption such as rubber tires and feed, driving the zinc oxide industry to start to maintain a low and stable state. "View details

[SMM data: domestic refined zinc production in December is in line with expectations. Overall output is expected to decline in January.] SMM China's refined zinc production in December 2020 was 553500 tons, a decrease of 8800 tons, or 1.57 percent, compared with the same period last year, an increase of 3.06 percent over the same period last year. The output of refined zinc in 2020 was 6.104 million tons, a cumulative growth rate of 4.44 percent over the same period last year. Among them, the sample alloy output of domestic refining zinc smelters in December was 78700 tons, a decrease of 3.78% compared with the previous month. "View details

[SMM News: four consecutive increases in zinc prices: consumption weakening limits rising space] at present, the macro mood is good. Although the TC of domestic zinc concentrate is still low and the supply of zinc ore is tight, it has not been transmitted to the smelter, and it is expected that the refinery will maintain high production from January to February. While consumption in the lower reaches is gradually weakening, downstream enterprises in the middle and late January have a holiday one after another and the holiday time in the northern region is earlier, or limit the upstream space of Shanghai zinc. Overall, short-term zinc prices are still strong and volatile, but the rising space is limited. "View details

SMM interpretation: stainless steel limit! Logistics restrictions aggravate the shortage of downstream products and export orders] in terms of fundamentals, domestic stainless steel is in a tight state; coupled with the recent fermentation of logistics problems, the shortage of goods in the market has intensified. The rise in the price of stainless steel futures contracts. "View details

[SMM analysis: stainless steel futures multiple contracts limit! Spot tight price upward trend] the stainless steel futures contract price pull up, on the one hand, driven by the spot market price upward, give bulls confidence; secondly, the ongoing current price difference repair, as of the latest quotation, the current futures spread from 785 yuan / ton at the beginning of the previous week to 145 yuan / ton; On the other hand, there is a certain gap between SS2101 contract registered warehouse receipts and contract positions, which strengthens the sentiment of bulls to increase positions. "View details

At present, there is an unprecedented shortage of domestic containers, a serious uneven distribution of containers in the world, a serious shortage in some areas and a serious backlog in some countries. The index of container freight rates for Chinese exports released by the Shanghai Shipping Exchange recently reached 1658.58 points, up 5.2% from the previous period, and has been rising for several weeks. According to SMM, by the end of the year, the phenomenon of "lack of boxes" in China's coastal port areas has become increasingly prominent, resulting in a substantial increase in shipping costs. "View details

[SMM analysis: high shock of steel prices under weak reality vs strong expectations] according to SMM research, the operating rate of blast furnace calculated by SMM was 88% on January 7, an increase of 0.5% over last week and a drop of 0.14% from the same period last year. Under the continuous shortage of coke, some steel mills are restricted by raw materials and start maintenance, which leads to a decline in the operating rate of blast furnace. "View details

[SMM Silicon Market briefing in December: supply reducing demand weak market sentiment pessimistic silicon prices start a downward trend] although the Spring Festival in 2021 is in mid-February, due to drivers worried about the impact of the epidemic will not be able to return home on time, domestic car transport may begin in mid-January, for metal silicon downstream enterprises and exporters, there is not much remaining trading time before the year. "View details

[SMM analysis: cobalt raw material imports reduce producers' inventory, tight electrolytic cobalt prices may continue to rise at the beginning of the year] the recent rise in electrolytic cobalt prices is mainly supported by market rumors that there are new confirmed cases and deaths in the Democratic Republic of the Congo (DRC) mining area; Zimbabwe's "city closure" decision has not affected the cross-border transportation of cobalt raw materials for the time being, but worries about the expected impact are still there. South Africa's post-holiday shipping schedule and container bookings are more tight than before the festival, and domestic imports of cobalt raw materials are expected to decrease in February or even March. On the other hand, battery material demand is improving, Spring Festival stock, receiving / storage support, superimposed raw material inventory is tight, the cost is high, supporting the rising price of battery material plate. "View details

[SMM Analysis: lithium Iron Phosphate Battery burst into the SUV Market Power demand may exceed expectations in 2021] recently, there is market rumor that a lithium iron phosphate battery production line in the Ningde era has been packed by a car from Weilai. It can also be seen from the coming news that the domestic SUV market has begun to consider using lithium iron phosphate battery, in addition to reducing costs and improving market competitiveness. The safety of iron lithium and the improvement of battery mileage driven by the development of battery structure have also become the main factors considered by the market. It can be seen that lithium iron battery is also gradually entering China's SUV market this year, and lithium iron phosphate battery is becoming more and more important in Chinese head battery enterprises. It is expected that the installed capacity of iron lithium battery in 2021 may exceed expectations. "View details

Important news of metals and industry

[Codelco will overhaul Chile's overhaul copper mine and start operating in the second half of next year] Chilean copper miner Codelco has obtained the approval of its board of directors to spend US $1.383 billion on a comprehensive overhaul of the overhaul copper mine. The move is expected to extend the production life of aging mines and increase their production to 95000 tons of (tpa) per year. Codelco is expected to start operating the overhauled mine in the second half of next year. "View details

The leader of the Peruvian Mining Association said that Minmetals's (Las Bambas) copper mine in Las Bambas, Peru, suffered from three weeks of roadblock protests by local people, resulting in a sharp drop in exports. If the protest cannot be resolved, the, Las Bambas copper mine may choose the opportunity to carry out equipment maintenance works.

Jiangtong Hongyuan Copper Co., Ltd. was established in August 2019, mainly engaged in the production and sales of electrolytic copper and by-products, with a registered capital of 250 million yuan and a 43% stake in Jiangtong Hongyuan Copper Co., Ltd., established in August 2019, is mainly engaged in the production and sales of electrolytic copper and by-products, with a registered capital of 250 million yuan. The construction is carried out in two phases. the first phase of the 100000-ton electrolysis system started in November 2019 and has been basically completed at present. On January 7, 2021, the first batch of qualified high-purity cathode copper successfully went out of the tank. It is planned to reach the production standard in 2021, and the output value is expected to reach 5 billion yuan.

[total investment 6 billion yuan Aikang Group 300000 tons of aluminum products and 5GW photovoltaic module project signed the East China Sea] recently, Donghai County of Lianyungang held a signing ceremony with Aikang Industry to invest 6 billion yuan 300000 tons of aluminum products and 5GW photovoltaic module project. This project is the largest industrial project in Donghai County, and it is of great significance to strengthen the leading industrial chain of Donghai Economic Development Zone and accelerate the development of leading industrial agglomeration in Donghai Economic Development Zone. Zhang Qibing pointed out that the 300000 tons of aluminum products and 5GW photovoltaic module project signed by this cooperation is of great significance for upgrading the energy level of industrial development in the East China Sea, and will effectively promote the rapid economic development of the East China Sea. "View details

[maitu officially acquires KCC] Maitu announced yesterday that it has signed an agreement to acquire South Korea's KCC Group's silicone business in South Korea and the UK, as well as its silicone sales business in China. The acquisition will further strengthen Maitu's global strength in high-end silicone products and professional applications. The acquisition led to the transfer and merger of KCC's silicone business from KCC (the majority shareholder of Maitu) to Maitu, thus integrating the comprehensive strength and expertise of both sides in the advanced silicone business. Maitu develops and produces high-end and specialty silicone products, which are used in health care, telecommunications, electronics, personal care, construction, transportation, agriculture, energy and many other industries.

[China Iron and Steel Association: strictly controlling steel production capacity growth to promote ultra-low emission transformation] recently, the China Iron and Steel Association held a video conference on how to control production growth, maintain a balance between production and demand, curb the rise in imported iron ore prices, and reduce carbon emissions in the industry in 2021. He Wenbo, executive chairman of the China Iron and Steel Association, stressed that at present, the three major pain points facing the development of China's iron and steel industry still exist, the results of supply-side reform and capacity removal are not solid, and the level of the industrial chain supply chain needs to be further improved. Efforts should be made to strictly control the growth of iron and steel production capacity, refine downstream demand management, promote the transformation of ultra-low emissions, maintain the smooth operation of the industry, and promote the balance between supply and demand, so as to achieve high-quality development of the iron and steel industry.

[Cleveland-Cleaves Company completes acquisition of ArcelorMittal USA] Cleveland-Cleveland Corporation (Cl evel and-Cl if f s) has completed its acquisition of ArcelorMittal USA, making it the largest flat wood producer in North America. The deal is the second major acquisition by Cleveland-Cleaves following its acquisition of AK Steel in March. The combined company is expected to have sales of $17 billion and a combined EBITDA of about $1.7 billion.

[Tianqi Lithium Industry has an existing lithium carbonate production capacity of 34500 tons / year in the construction of battery-grade lithium carbonate] on January 6, Tianqi Lithium Industry said in an interactive exchange with investors that the company's lithium carbonate production capacity is 34500 tons / year and lithium hydroxide capacity is 5000 tons / year. In addition, the company also has 48000 tons of lithium hydroxide and 20, 000 tons of battery-grade lithium carbonate under construction, of which the first phase of Quinana's 24000-ton lithium hydroxide project is scheduled to reach its design capacity in the fourth quarter of 2022. "View details

[SKI invests US $1 billion to build a battery plant with an annual capacity of 11.7GWh] it is reported that South Korea's SK Innovation will be a US subsidiary SK Battery America Inc.. Issue $1 billion in green bonds to expand its battery production capacity for electric vehicles in the United States. The subsidiary will use the money to build its second EV battery plant in Georgia. "View details

[northern rare earths traded 80 tons of metal praseodymium and neodymium on the rare exchange] on January 6, China Northern rare Earth (Group) High-tech Co., Ltd. completed five transactions through the Baotou rare earth products exchange listing market, selling a total of 80 tons of metal praseodymium and neodymium.

The world's largest gold ETF--SPDR Gold Trust position is down 0.39 per cent, or 4.67 tonnes, from the previous day, and the current position is 1182.11 tonnes.

Terminal information

[it will take at least five years for Apple to launch a self-driving electric car.] it will take Apple at least five years to launch a self-driving electric car, as research and development is still in its early stages, according to people familiar with the matter. Apple has a small team of hardware engineers with the ultimate goal of producing a car and recently hired a former Tesla executive for the project. Nevertheless, engineers involved in the project believe that the car is not yet close to production, but the timetable may change. An Apple spokesman declined to comment.

[GM China fourth quarter sales growth of luxury cars, SUV strong momentum] GM said on Wednesday that it had retail sales of more than 2.9 million vehicles in China in 2020. A total of 954325 vehicles were delivered in China in the fourth quarter, with sales up 14% from a year earlier. Subdivided into models, luxury models and SUV deliveries increased, with Cadillac up 56% in the fourth quarter, with full-year sales reaching a record 230527. Buick grew 28 per cent to 290027 in the fourth quarter and 4.1 per cent for the year to more than 885000. Sales of cars made by Wuling, GM and SAIC rose 35 per cent in the fourth quarter and 8.8 per cent in 2020 to 1.1 million units.

[Zhenhua New Materials Co., Ltd. IPO accepted proposed to raise 1.2 billion plus code lithium cathode materials business] on January 5th, Guizhou Zhenhua New Materials Co., Ltd. applied for listing on Kechuang Board has been accepted, with CITIC Construction Investment Securities as its sponsor. IPO, Zhenhua new material plans to raise 1.2 billion yuan for lithium-ion battery cathode material production line construction project (Shawen II), lithium-ion power battery ternary material production line construction (Yilong II) and supplementary liquidity.

Sinopec will deepen cooperation with four new energy companies, including Trina Solar Energy and Longji. Sinopec said on the 7th that during the 14th five-year Plan period, Sinopec will actively promote the orderly development of hydrogen energy integration business. In the future, Sinopec will carry out wider and deeper cooperation with Xiexin Group, Trina Solar Energy, Longji Group and Central Electronics around the new energy industry chain. A person in charge of Sinopec said that in the future, with the above four new energy companies, we will give full play to Sinopec's internal Electroweb absorption advantages and cooperate to promote the landing of photovoltaic, hydrogen and other new energy projects in Sinopec. Give full play to the advantages of Sinopec's marketing network and promote the construction of Fengguang-hydrogen integrated distributed energy demonstration project.

[Li Bin responded to "Weilai launched Lithium Iron Phosphate Model" recently, it has been reported that Weilai Automobile has contracted a lithium iron phosphate battery production line in Ningde era, and the version of lithium iron phosphate is under test preparation, and the relevant model is expected to be launched this year. On the morning of January 7, Li Bin, CEO of Xilai Motor, responded: "We are discussing various possibilities and will not use them in mass production in the near future."