Galaxy: Greece's aid agreement reached a higher price for non-ferrous metals

Quotes review:

Non-ferrous metals prices generally opened higher today. Shanghai copper 1205 closed at 60,490 yuan, or 1.22%; Shanghai aluminum 1205 closed at 16,250 yuan, or 0.56%; Shanghai zinc 1205 closed at 15,825 yuan, down 0.70%; Shanghai lead 1204 closed at 15,820 yuan, down 0.38%.

The second aid agreement reached by Greece eased investors’ nervousness and boosted market sentiment, which boosted non-ferrous metal prices. HSBC’s initial Chinese manufacturing PMI rose to 49.7, indicating that the manufacturing situation has improved, but the new export order data is still poor.

Influencing factors:

The dollar strengthened last night, suppressing LME metal prices. During this period, the euro zone may postpone the second round of aid programs to Greece and strengthen the market’s concerns about the European debt crisis. Due to the complexity of the European debt issue, China has yet to see the introduction of stimulus policies. In February, new loans are still limited, and the surrounding markets have fallen into more varieties and market sentiment has been under pressure.

Variety fundamentals:

Copper: The spot price of the main contract is between 550-400 yuan, and the downstream high-risk holders wait and see and poison. The transaction is more general. After the fatal accident on Monday in Collahuasi, Chile, the operations of all mines, factories, and docks were stopped and they may resume normal operation on Wednesday. In January, China imported 335,500 tons of refined copper, an increase of 36.59% year-on-year.

Aluminium: The domestic aluminum spot market is generally trading, and the spot premium is maintained at RMB 130/t. In January, China imported 46,600 tons of primary aluminum, an increase of 37.61% year-on-year; imported bauxite was 3.112 million tons, an increase of 6.61% year-on-year.

Zinc: The spot price of the main contract was at 340-320 yuan/ton, and the downstream gradually took a wait-and-see attitude. The traders’ enthusiasm for purchases was undiminished, and the overall transaction was general.

In terms of fundamentals, the operating rate of smelters is still not high. Zinc miners will work hard to get the smelters to cut their zinc processing fees because supply is expected to be tight, and China's spot premium declines, focusing on the International Zinc Association meeting next week.

Lead: Spot transactions are stagnant, smelter shipments are relatively small, and downstream procurement enthusiasm is also relatively limited. Brand lead is quoted at 15,800 yuan/ton. Focus on the recovery of downstream consumption. In January, China imported 56 tons of refined lead, a year-on-year decrease of 88.38%, and imported lead ore 88,700 tons, a decrease of 45.42% year-on-year.