[SMM afternoon Review] Nonferrous rose more than 1%, gold and silver rose slightly, crude oil fell more than 2%, iron ore fell.

SMM4 March 6: most of the non-ferrous metals market is red this morning. By midday, international copper rose 1.64%, Shanghai copper rose 1.36%, Shanghai aluminum rose 0.17%, Shanghai lead fell 1.16%, Shanghai zinc rose 1.49%, Shanghai nickel rose 1.95%, and Shanghai tin rose 2.1%. As for copper, it is reported that the Chilean government has decided to close the border in order to strengthen control of the COVID-19 epidemic. Chile's Ministry of Energy and Mines responded in an email that the border closure would not affect the normal operation of mining companies. Edgar Blanco, Chile's deputy mining minister, had previously said that the mining industry was the engine of Chile's economic recovery, but he said the exemption from the blockade should only be granted to those who perform basic functions and are able to maintain operations.

In terms of black, thread rose 1.69%, hot coil rose 0.62%, coking coal rose 0.13%, coke fell 0.06%, iron ore fell 0.61%, stainless steel rose 0.67%. SMM believes that the profits of steel mills before threaded joints continue to expand, the desire to meet production is strong, the demand is significantly restored, and inventory is maintained at a high speed. Although there are incremental expectations of supply and demand in the later stage, it is obvious that under the interference of high operating rate and environmental production restrictions, the expectation of incremental space on the supply side is obviously smaller than that on the demand side, and the current price of rebar still has a certain upward momentum in the period of rebar. As for the hot coil, in April, most steel mills plan to be full of production, the overall orders of the downstream enterprises of the hot coil are full, and some orders for home appliances, machinery and enterprises related to exports have even been received to May-July, and the short-term demand forecast is optimistic. However, we need to pay attention to experience a short-term rapid rise, whether market sentiment or terminal need a certain amount of time to digest, the rise or slightly moderate.

[SMM Express] Steel stocks opened to drive up steel prices to a record high, hot rolls and profits of more than a thousand.

The last period of crude oil fell 2.67%, the news, on the eve of the OPEC meeting, the uncertainty of OPEC production in the next three months caused speculators to be cautious about their positions, and crude oil funds fell both long and short. Short positions have been reduced more than long positions because of widespread expectations that Saudi Arabia is prepared to support OPEC to extend oil production cuts to May and June, as well as to extend voluntary production cuts.

In terms of precious metals, Shanghai gold rose 0.13%, Shanghai silver rose 0.37%, international gold prices rose on Tuesday, the depreciation of the dollar made gold cheaper and more attractive to buyers outside the United States, and the fall in US bond yields provided further support. The dollar fell to a nearly two-week low against a basket of currencies on Tuesday, and Treasury yields also fell as investors halted their recent sell-off in Treasuries. Weaker US bond yields will reduce the opportunity cost of holding gold, a non-interest-bearing asset.

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