Today 1# electrolytic copper fell; A00 aluminum ingot fell sharply. Steel for transformers: oriented silicon steel and unchanged.
demand release
S13-M stacked core transformer national grid standard 50*61 units 100*108 units 200*100 units
will be delivered in batches starting from June 8th, and all will be delivered by June 15th. Delivery location Hubei Xiaogan
Copper and aluminum quotation
Source: Changjiang Nonferrous Metals Network - 2017.5.31
Oriented silicon steel quotation
Transformer Copper strip Processing fee reference quotation (including freight):
5 main material review
1 #electrolyticcopper:
Copper price this month, From 46,870 yuan/ton at the beginning of the month, it fell all the way to the lowest point of 44,840 yuan/ton, and then entered a period of continuous shock, ending at 45,530 yuan/ton, with a total drop of 1,340 yuan/ton in May.
Recent market news has shown a long-short game, making copper prices in a dilemma.
On the positive side, , more than 9,000 copper miners under Freeport in Indonesia went on strike for the second month, boosting copper prices to remain high; US President Trump colluded with Russia, leaked, dismissed, and was The budget bill that has been questioned by the outside world has caused the president's popularity to plummet, and his political future has been tarnished. It has also dragged down the dollar to continue to fall, and commodity prices have rebounded.
On the negative side, , the international rating agency Moody's lowered its rating on China on the 24th of this month due to debt problems, which to a certain extent dampened the enthusiasm for trading in the financial market. In addition, my country's financial monitoring has been upgraded in recent months. Non-ferrous metals It has become more difficult for traders to borrow money, and merchants are less enthusiastic about entering the market. In terms of supply and demand, the recently released copper market data is not optimistic. According to customs data, the electrolytic copper output announced by the Bureau of Statistics in April also showed a significant month-on-month decline, and apparent consumption decline, worries about market demand have arisen again.
Looking at in the short term, the domestic market has a strong festive atmosphere around the Dragon Boat Festival, and the overall transaction volume is light.
Regarding the British general election, there are obvious differences between the two campaigning parties on Brexit. The political uncertainty in the market outlook will increase, which is expected to cause fluctuations in foreign exchange and thus affect the metal market.
As for the Federal Reserve, boosted by the higher-than-expected annual growth rate of the U.S. economy in the first quarter, the probability of the Federal Reserve raising interest rates in June has been adjusted to 88%. The continued weakening of the U.S. dollar has also provided a high probability for the U.S. dollar to rebound after the interest rate hike. It provides a large upside space and is expected to put some pressure on the metal market.
Taking a comprehensive look at , the macroeconomic risks of the copper market in June are relatively high, and with the end of the peak market season in March and April, the demand in the copper market has gradually declined, and the upward support for copper prices has been limited.
A00 aluminum ingot:
The aluminum price this month started from 13,940 yuan/ton at the beginning of the month, fluctuated around 13,800 yuan/ton, and finally ended at 13,750 yuan/ton. The overall trend of strong fluctuations fell by 190 yuan/ton in May. It is expected that June will still be dominated by shocks.
Oriented silicon steel:
Oriented silicon steel has been lowered several times this month and has weakened slightly. However, merchant shipments are generally average, the capital turnover gap is large, and market confidence is not strong. The downturn may continue until around the Dragon Boat Festival.
Judging from the current market conditions, although the oriented silicon steel market is sluggish and weak, there are at least two factors that support it. On the one hand, Baowu Steel has merged not long ago, so the possibility of price reduction is low, market ordering costs are high, and it is unlikely to continue to decline; , on the other hand, will enter the replenishment stage as market resources and downstream inventory are digested. Moreover, the overall demand is mildly improving, which is conducive to the rebound of grain-oriented silicon steel after bottoming out.
At present, the sluggish state still needs time to repair. After the Dragon Boat Festival, the market may re-enter the bottoming rebound cycle.
