Market review. As of April 8, 2022, Shenwan nonferrous metals industry fell by 1.05% this week, outperforming the CSI 300 index by 0.01 percentage points and ranking 12th among Shenwan 31 industries; Shenwan nonferrous metals industry fell 0.50% this month, 0.69 percentage points lower than Shanghai and Shenzhen 300 index, ranking 15th among Shenwan 31 industries; Shenwan nonferrous metals sector has fallen 9.05% year to date, outperforming the Shanghai and Shenzhen 300 index by 5.31 percentage points and ranking 11th among Shenwan 31 industries.
As of April 8, 2022, among the sub sectors of nonferrous metals industry this week, precious metals rose 6.58%, industrial metals rose 0.61%, small metals fell 2.11%, new metal materials fell 4.57% and energy metals fell 4.73%.
Zhou’s view on the nonferrous metals industry. Industrial metals. At present, the supply side transportation of copper and aluminum in Shanghai and surrounding areas is limited, and the downstream demand and construction of copper and aluminum in China are also affected. The situation in Russia and Ukraine further heated up this week. Europe and the United States decided to impose a new round of sanctions on Russia. The supply side is limited and the global low inventory of copper and aluminum supports the high price of industrial metals. It is suggested to pay attention to Yunnan Aluminium Co.Ltd(000807) ( Yunnan Aluminium Co.Ltd(000807) ), Henan Shenhuo Coal&Power Co.Ltd(000933) ( Henan Shenhuo Coal&Power Co.Ltd(000933) ), Henan Mingtai Al.Industrial Co.Ltd(601677) ( Henan Mingtai Al.Industrial Co.Ltd(601677) ), Guangdong Jiayuan Technology Co.Ltd(688388) ( Guangdong Jiayuan Technology Co.Ltd(688388) ). noble metal. The situation in Russia and Ukraine has intensified this week, increasing market risk aversion, and precious metal prices continue to rise. On April 7, the Federal Reserve released the minutes of its March meeting. The minutes showed that many officials tended to raise interest rates by 50 basis points when necessary, but considering the conflict between Russia and Ukraine, they finally raised interest rates by 25 basis points and proposed to reduce their balance sheet at a rate of up to $95 billion per month. The overall speech of the Federal Reserve is partial to Eagle, which puts pressure on the rising trend of precious metals. However, the geopolitical situation continues to be tense, supporting the high price of precious metals, and the price of gold continues to fluctuate at a high level this week. It is suggested to pay attention to Shandong Gold Mining Co.Ltd(600547) ( Shandong Gold Mining Co.Ltd(600547) ), Chifeng Jilong Gold Mining Co.Ltd(600988) ( Chifeng Jilong Gold Mining Co.Ltd(600988) ), Zijin Mining Group Company Limited(601899) ( Zijin Mining Group Company Limited(601899) ). Energy metals. As of April 8, the average price of battery grade lithium carbonate was 494500 yuan / ton, the price of industrial grade lithium carbonate was 475000 yuan / ton, and the price of lithium hydroxide was 492500 yuan / ton, all slightly lower than last week. Although there is a correction in the lithium salt sector at present, the demand in the downstream battery and other fields of the lithium industry chain is strong, and the supply has increased to a certain extent, the situation of short supply of the lithium industry chain will continue in the next 2-3 years, and the sustainability and certainty of the development of the lithium industry chain are good. It is suggested to pay attention to Chengxin Lithium Group Co.Ltd(002240) ( Chengxin Lithium Group Co.Ltd(002240) ), Ganfeng Lithium Co.Ltd(002460) ( Ganfeng Lithium Co.Ltd(002460) ), Tibet Summit Resources Co.Ltd(600338) ( Tibet Summit Resources Co.Ltd(600338) ).
Risk tip: macroeconomic growth is less than expected; The monetary policy tightening of the Federal Reserve and the European central bank exceeded expectations; The prices of energy metals and rare earths fell sharply; The downstream demand of nonferrous metals is lower than expected; The impact of the uncertainty of the situation in Russia and Ukraine on the fluctuation of industrial metal prices, etc
