Energy supply affects the production capacity of European electrolytic aluminum plants Freeport 2022, and the processing fee for long-term orders increases
Affected by the shortage of energy supply, some electrolytic aluminum production in Europe stopped production, and the international aluminum price rose slightly this week. We believe that global energy may continue in the short term, supporting aluminum prices. This week, China’s copper enterprises and Freeport finalized that the long single processing fee of copper concentrate in 2022 will be 65 US dollars / ton and 6.5 US cents / pound, an increase of 5.5 US dollars / ton and 5.5 US cents / pound compared with 2021. The copper supply may be relatively loose next year. LME copper rose 1.60% this week to close at US $9597 / ton; LME aluminum rose 3.16% to close at US $2820 / ton; Lead fell – 1.37% to close at US $2272 / ton; LME zinc rose 4.02% to close at USD 3517 / ton; LME tin rose 1.90% to close at US $39150 / ton; LME nickel rose 2.40% to close at US $20090 / ton. It is recommended to pay attention to Yunnan Copper Co.Ltd(000878) , Tongling Nonferrous Metals Group Co.Ltd(000630) , Zijin Mining Group Company Limited(601899) .
Lithium carbonate prices continue to rise and supply is still in short supply
The price of battery grade lithium carbonate continued to rise this week, with a weekly increase of 8.51%, breaking through 250000 yuan / ton. Recently, there are frequent plans to expand the production of battery cathode, the problem of supply shortage is difficult to solve in the short term, and the profits of upstream mines are expected to continue to rise. It is recommended to pay attention to Tianqi Lithium Corporation(002466) , Ganfeng Lithium Co.Ltd(002460) , Youngy Co.Ltd(002192) . Meanwhile, affected by the epidemic, South Africa announced the closure of all ports, which has a continuous impact on China’s Cobalt supply. Cobalt prices are easy to rise but difficult to fall. It is suggested to pay attention to: Zhejiang Huayou Cobalt Co.Ltd(603799) , Nanjing Hanrui Cobalt Co.Ltd(300618) .
The rise of long single processing fee is good for copper smelting enterprises, and China’s copper price fluctuates less
Copper on the Shanghai Futures Exchange rose 0.74% to close at 69790 yuan / ton this week; Aluminum rose 3.46% to close at 20160 yuan / ton, and inventories continued to fall. The TC processing fee of copper spot increased slightly. The processing fee of Freeport was finalized in 2022, up nearly 9% year-on-year. The profit of copper smelting enterprises is expected to rise steadily next year. It is recommended to pay attention to Tongling Nonferrous Metals Group Co.Ltd(000630) , Jiangxi Copper Company Limited(600362) .
The core PCE price index of the United States hit a 40 year high, and the price of noble metals fluctuated slightly
The core PCE price index of the United States was released in November, with a year-on-year increase of 4.7% and a month on month increase of 0.5%, reaching a 40 year high. This week, spot gold in London fell – 0.14% to close at US $1805.20/oz, and the US dollar index fell – 0.56% to close at 96.13; COMEX gold rose 0.38% to US $1811.70 / oz this week, while Comex Silver Rose 1.81% to US $22.94 / oz. In the short term, the inflationary pressure in the United States may not be relieved, and the gold price is expected to maintain a narrow fluctuation.
Risk tip: the global economic recovery is less than expected, and the development of epidemic situations abroad is repeated.
