Newsletter summary
Overnight, the prices of base metals on the London Metal Exchange (LME) generally fell.Pokervideos2022Copper, aluminum, zinc, nickel, tin and lead decreased by 0.36%, 1%, 0.15%, 1.28%, 0.33% and 0.71%, respectively. The number of initial claims for unemployment benefits in the United States fell from the previous week. China's imports of refined copper, copper ore and bauxite fell month-on-month in April, but maintained year-on-year growth. Copper inventory increased in domestic mainstream areas, aluminum inventory increased, zinc inventory decreased. The shock of the US dollar led to an increase in exports from domestic copper smelters. It is recommended that short-term operation is given priority to, copper and aluminum long-term cross-month positive sets can be held. The spot price of industrial silicon remains stable, and the market transaction is dominated by rigid demand, which is recommended to wait and see.
Text of news flash
[metal market fell slightly last night] overnight, the price of copper on the London Metal Exchange (LME) fell by $37 to 0.36 per cent, while aluminum fell by $26, or 1 per cent, while zinc and tin fell slightly by $4 and $110, respectively, by 0.15 per cent and 0.33 per cent, while nickel and lead fell $260,0.36 per cent and 0.71 per cent respectively.
In terms of economic data, the number of initial claims for unemployment benefits in the United States in the week of May 18 was 215000, down 8000 from the previous week's revised figure of 223000. The minutes of the Fed meeting conveyed policymakers' concerns about the progress of falling inflation and hinted at the need to keep interest rates high. Rio Tinto's alumina plant in Queensland has suffered gas supply restrictions, affecting its alumina exports. Chinese customs data show that China imported 305 refined copper in April.Pokervideos2022, 818.914 tons, down 3.50% from the previous month, up 17.82% from the same period last year, and the import volume of copper ore and its concentrate was 2347911.378 tons, up 0.69% from the previous month and 12.39% from the same period last year. At the same time, China's imports of bauxite reached a record high of 14.2376 million tons, an increase of 20.02% from the previous month and 18.84% from the same period last year.
In terms of inventory, copper stocks in domestic mainstream areas increased by 12300 tons to 415100 tons, electrolytic aluminum social stocks increased by 8000 tons to 767000 tons, aluminum bar stocks decreased by 4600 tons to 181100 tons, and zinc ingots stocks in Qidi decreased by 2900 tons to 229,900 tons. Metal inventories remain high and spot rising water is at a short-term low. The dollar shock continued, COMEX copper positions decreased, domestic copper smelter exports increased.
[operational suggestions] short-term thinking is the main way of thinking, copper and aluminum long-term cross-period positive sets can be held, only for reference.
[industrial silicon prices remain stable] the industrial silicon market continued to fluctuate slightly yesterday, with no obvious drivers for the time being. The price of industrial silicon in East China remains stable, with no oxygen in the range of 12900-13100 yuan / ton, oxygen supply in the range of 13200-13400 yuan / ton, and 42 oxygen in the range of 13700-13800 yuan / ton.
Spot market transactions are dominated by downstream rigid demand, and most silicon companies continue to lose money. In April, some small silicon enterprises in Xinjiang were overhauled and stopped production, and the demand for bonded silicon coal in Xinjiang weakened. With the high price of bonded silicon coal in Xinjiang stabilized in the early stage, the shipping situation is general. The price of bonded silicon coal in Xinjiang has been reduced to 225 yuan / ton, and the current factory price is about 2000 yuan / ton.
Comprehensive market analysis shows that the mainstream trend of supply-side production reduction is to digest excess inventory, and market participants are advised to maintain a wait-and-see attitude.