Group 1: Copper - This week, copper prices showed a reverse V-shaped trend. The ADP and non-farm payroll data diverged, causing the overall interest rate cut expectation to fluctuate. Trump's "Great Beauty" Act was implemented, and short-term broad fiscal policies may have a certain stimulating effect [1]. - Domestically, inventory has increased, and the start-up rate has declined significantly. It is expected to continue to decline during the off-season from July to August, and overall copper consumption by downstream industries has been somewhat suppressed [1]. - The spread between refined and scrap copper has widened this week, weakening the substitution effect. It is expected that there will be a moderate inventory increase from July to August [1]. - With the S232 investigation pending, there is still strong support below the copper price. A significant drop would require a macro black swan event, which is currently unlikely. During the off-season in the third quarter, the copper price is expected to have some adjustment room due to inventory accumulation and the decline in the refined-scrap substitution effect [1]. Group 2: Aluminum - Supply has increased slightly, with aluminum ingot imports providing an increment from January to May. In July, demand is expected to weaken seasonally, with aluminum product exports remaining stable and photovoltaic demand declining. Supply and demand are expected to be balanced [1]. - In terms of inventory, supply and demand are expected to be balanced in July. The short-term fundamentals are acceptable, and attention should be paid to demand. In a low-inventory situation, attention should be paid to inter-month spreads and reverse arbitrage between domestic and foreign markets [1]. Group 3: Zinc - This week, zinc prices fluctuated widely. In July, the domestic TC increased by 200 yuan/ton compared to June, and the imported TC increased slightly. Some smelters are undergoing maintenance in July, but new production capacities in the southwest and central China have been realized, and the zinc ingot output is expected to increase by more than 5,000 tons month-on-month [4]. - On the demand side, domestic demand has weakened seasonally. The spot premium in North China has turned to a discount, and those in East and South China have basically leveled off. Overseas, demand in Europe is weak, but some smelters face certain production resistance due to processing fees, and the spot premium has increased slightly [4]. - Domestically, social inventory has increased oscillatingly. Due to more factory pick-ups at the current price, the inventory accumulation of social inventory is slightly slower than expected. Overseas, LME inventory has decreased oscillatingly since May, mainly because more overseas zinc ingots have flowed into China [4]. - The strategy remains to short zinc and sell on rallies. The long domestic and short foreign arbitrage can continue to be held [4]. Group 4: Lead - This week, lead prices rose moderately. On the supply side, the scrap volume is weaker year-on-year. The expansion of recycling plants has led to a shortage of demand for scrap batteries. Although the low profit has improved this week, the operating rate remains low. The willingness of recyclers to sell at a high price has weakened [7]. - From April to June, the operation rate of concentrate mines increased, but the supply of domestic and foreign concentrates has tightened, and the TC is in a mess [7]. - On the demand side, battery inventory is high. This week, the battery operating rate rebounded, and the market has expectations for the peak season. The refined-scrap spread is -50, the willingness of recycled lead producers to sell has increased, but the reception is poor. There is speculation about cancelled LME warehouse receipts [7]. - From April to July, overall consumption during the off-season is weak, and orders only meet the rigid demand. This week's price increase is due to speculation about the improvement in battery stocking demand and overseas cancelled warehouse receipts, but in reality, downstream buyers only replenish their inventories for rigid demand at high prices [7]. - The profit of recycled lead has improved, but the operating rate has not increased. The willingness of scrap battery owners to sell at a high price is strong, and the price support behavior is weaker than in the previous upward cycle. The willingness of recycled lead producers to sell has improved, but the reception is poor. The refined-scrap spread is -50, and the lead ingot spot is at a discount of 40, mainly maintaining long-term orders [7]. - It is expected that lead will oscillate in the range of 17,100 - 17,500 next week. If the macro situation affects the lead price to remain above 17,200, it may trigger the risk of a price support cycle. In July, primary lead supply is expected to decrease slightly, and demand is weak [7]. Group 5: Tin - This week, tin prices fluctuated widely. On the supply side, the short-term resumption of production in Wa State, Myanmar, still needs negotiation. The processing fee for tin ore is at a low level, and the smelting profit is inverted. Some smelters in Jiangxi Province, China, have reduced production, and those in Yunnan Province are still struggling to maintain production. In June, the output of tin ingots decreased by more than 1 kt month-on-month [9]. - Overseas, except for Wa State, supply disruptions have basically subsided. The import volume from the Democratic Republic of the Congo in May exceeded expectations, mainly due to traders' inventories [9]. - On the demand side, the elasticity of solder is limited, and the growth rates of the terminal electronics and photovoltaic industries are expected to decline significantly. Domestic inventory has increased oscillatingly. Overseas consumption rush continues, but the LME inventory is at a low level, and the inflection point of inventory accumulation is gradually emerging [9]. - On the spot side, the supply of small-brand tin ingots remains tight. Most of the exchange inventory is high-priced Yunzi-brand tin ingots, and downstream buyers have no strong willingness to pick them up [9]. - In the short term, there are both disturbances in domestic raw material supply and expectations of consumption decline. It is expected that supply and demand will remain weak in the first half of the year. June and July may be the key stages to verify whether the tightness of tin ore will be transmitted to the tightness of tin ingots, and the bottom has strong support [9]. - In the short term, it is recommended to wait and see. In the long term, pay attention to shorting opportunities after the maintenance period [9]. Group 6: Industrial Silicon - This week, Hesheng's Xinjiang production area continued to reduce production, while those in Yunnan and Sichuan increased slightly. Overall, due to the significant production reduction of leading enterprises, the production in July and subsequent months is expected to decline from the previous expectation of a significant increase, and the supply-demand balance has shifted to inventory reduction [13]. - If Hesheng continues to maintain the production reduction, the spot price of industrial silicon is expected to fluctuate. Previously, against the background of the futures price hitting a new low, the basis strengthened rapidly, stimulating the long-suppressed speculative and replenishment sentiments of downstream industries. The de-stocking speed of warehouse receipts and non-standard products has been significant, and the spot price has been strong. The unexpected production reduction of leading enterprises has a significant marginal impact on the supply-demand balance, and there is a resumption of production in the downstream polysilicon industry [13]. Group 7: Lithium Carbonate - This week, lithium carbonate prices increased due to the promotion of the "anti-involution" policy. Spot transactions are mainly based on the 09 contract price. The price difference between upstream and downstream has led to average transactions. Downstream buyers settle at a later point in time, and there is inventory dumping at a reduced basis [13]. - The high price has stimulated the resumption of some production lines in Sichuan, and salt lakes continue to increase production. However, some factories have maintenance plans, and the hedging profit of externally purchased projects is abundant and production is ongoing [13]. - Downstream buyers are highly cautious and only maintain a safety inventory. Overall, inventory has increased this week. The willingness to deliver goods to the warehouse has improved, and the registered warehouse receipts have increased [13]. - In the medium and long term, there are many expansion projects for ore and lithium salt production capacities. If the operating rates of leading mining and smelting integrated enterprises do not decrease significantly, the lithium carbonate price will still fluctuate weakly. In the short term, downstream demand is weak, and the reduction in new energy vehicle consumer loans has not improved demand as expected [13]. - The lithium ore price has rebounded, and downstream buyers are cautious and replenish their inventories only for rigid demand. At the current price rebound, the profit of externally purchased smelters has improved, and they have resumed production. The profit of self-owned mines has increased, and the market clearance pace may be delayed [13]. - In the future, the supply elasticity is high. Large factories in Sichuan and previously maintained and technically improved enterprises are resuming production. Attention should be paid to the resumption time of the Jiuxiaowo project of CATL. Demand has not improved significantly. It is expected that the supply will continue to exceed demand next week, leading to inventory accumulation, which will put upward pressure on the price. The fundamental oversupply situation has not been significantly reversed. However, the "anti-involution" competition policy may boost sentiment, and risks need to be guarded against [13]. Group 8: Nickel - On the supply side, the production of pure nickel remains at a high level, and the import of nickel beans increased in May. On the demand side, overall demand is weak, and the LME premium has strengthened slightly [15]. - On the inventory side, overseas nickel plate inventory remains stable, while domestic inventory has decreased slightly. After the rumor that the Philippines' ban on raw ore exports has been abolished, concerns about supply disruptions in the ore market have eased. The short-term real fundamentals are average, and opportunities for narrowing the nickel-stainless steel price ratio can continue to be monitored [15]. Group 9: Stainless Steel - From the supply side, some steel mills have been forced to reduce production since late May. On the demand side, demand is mainly for rigid needs. In terms of cost, the prices of nickel iron and chrome iron remain stable [17]. - In terms of inventory, inventory has increased slightly in Xijiao and Foshan, and some exchange warehouse receipts have expired and been de-stocked. The overall fundamentals remain weak. After the demand fades, the pressure on the spot market increases, and it is expected to fluctuate weakly in the short term [17].
永安期货有色早报-20250708
Yong An Qi Huo·2025-07-08 02:22