US dollar continues to decline, most metals rise, alumina gains over 3%, precious metals rebound strongly, SHFE gold and silver rise over 2% [SMM Daily Review]

SMM May 21 News: Metal Market: As of the daytime close, domestic market base metals generally rose, with only SHFE nickel being the sole decliner, falling by 0.05%. SHFE tin led the gains with a 1.11% increase, SHFE zinc rose by 0.71%, and the remaining metals all saw increases within 0.7%. The main alumina futures contract rose by 3.11%, recording three consecutive days of gains. Additionally, the main lithium carbonate futures contract rose by 0.59%, the main polysilicon futures contract rose by 0.93%, the main silicon metal futures contract fell by 1.75%, and the main European container shipping futures contract fell by 7.18%. The ferrous metals series showed mixed performance, with iron ore rising by 0.76% and HRC rising by 0.16%. In the coking coal and coke sector, coking coal fell by 0.36% and coke fell by 0.14%. In the overseas market, as of 15:01, only LME tin and LME nickel fell together, with LME tin dropping by 0.16% and LME nickel by 0.15%. LME zinc rose by 0.87%, LME aluminum by 0.83%, and LME copper by 0.7%. In the precious metals sector, as of 15:01, COMEX gold rose by 1.04%, returning to the round number threshold of $3,300 per ounce, and COMEX silver rose by 0.5%. Domestically, SHFE gold rose by 2.98% and SHFE silver by 2.04%. Market snapshot as of 15:01 today 》Click to view SMM market dashboard Macro Front Domestic: [National Energy Administration Head Meets with Singapore Energy Market Authority Director] According to the National Energy Administration, on May 19, Wang Hongzhi, Director of the National Energy Administration, met in Beijing with Pan Guoqiang, Director of the Singapore Energy Market Authority, who was visiting. The two sides had an in-depth exchange of views on advancing China-Singapore cooperation in new energy. Wang Hongzhi stated that energy is an important area of pragmatic cooperation between China and Singapore, with close communication maintained on bilateral and multilateral platforms. Enterprises from both countries have invested in each other and carried out extensive cooperation in electricity, oil and gas, energy storage, and renewable energy. There is significant potential for future cooperation, with broad prospects. The National Energy Administration of China is willing to work with Singapore to build on past achievements, further leverage the role of existing cooperation mechanisms, strengthen dialogue and communication, and jointly advance China-Singapore cooperation in new energy to a new level. (Financial Link) [China and Ten ASEAN Countries Fully Complete Negotiations on China-ASEAN FTA 3.0] Version 3.0 includes nine new chapters on digital economy, green economy, supply chain connectivity, standard technical regulations and conformity assessment procedures, customs procedures and trade facilitation, sanitary and phytosanitary measures, competition and consumer protection, micro, small, and medium-sized enterprises, and economic and technical cooperation, which are conducive to promoting broader and deeper regional economic integration under the new circumstances. [PBOC Net Injection of 65 Billion Yuan in Open Market Operations] The People's Bank of China conducted 157 billion yuan in 7-day reverse repo operations today, with an operating interest rate of 1.40%, unchanged from before. As 92 billion yuan in 7-day reverse repos matured today, a net injection of 65 billion yuan was achieved. ►The central parity rate of the RMB against the US dollar in the interbank foreign exchange market as of 15:01 today was 7.1937 yuan per US dollar. US Dollar: As of 15:01, the US dollar index fell by 0.41% to 99.6, recording three consecutive days of losses. Atlanta Fed President Raphael Bostic said on Tuesday that US companies may have exhausted their strategies for coping with higher import tariffs and can no longer delay adjusting prices or employment conditions, with the economy possibly on the brink of a new round of price increases. He currently expects the US Fed to conduct only one 25-basis-point interest rate cut this year, followed by a few months for the effects of the Trump administration's policies to become clearer. St. Louis Fed President James Bullard said on Tuesday that even with the recent easing of US-China trade tensions, the labor market still appears likely to weaken, and prices will rise. However, if the easing of trade tensions continues, the Fed's current monetary policy stance may "still be appropriate." The tax cut bill pushed by US President Trump has reached an impasse. Currently, the market's focus is on a key vote planned by the US House of Representatives for this weekend. Republican leaders in the House have stated that they will continue to push forward with the bill despite the uncertain prospects for the tax legislation. (Wenhua Comprehensive) Macro: Today, data such as the UK's April CPI year-on-year rate, April core CPI year-on-year rate, and April retail price index year-on-year rate will be released. Additionally, it is worth noting that: 2025 FOMC voter and St. Louis Fed President James Bullard will give a speech on the economic outlook and monetary policy; 2027 FOMC voter Raphael Bostic will chair a meeting, and 2026 FOMC voter Loretta Mester and 2027 FOMC voter Mary Daly will deliver keynote speeches. Crude Oil: As of 15:01, oil prices in both markets rose together, with US crude rising by 1.29% and Brent crude rising by 1.19%. This is due to market concerns about potential disruptions to supply in major oil-producing regions in the Middle East. ING's commodity analysts stated that Iranian crude oil supply still faces risks. Iran is currently the third-largest crude oil producer in OPEC. At the same time, there are signs that crude oil supply is improving. Data released by API showed that US commercial crude oil inventories increased last week, while gasoline and distillate inventories declined. The data showed that US commercial crude oil inventories increased by 2.5 million barrels in the week ending May 16. Market participants are now awaiting the official weekly crude oil inventory report from the EIA later on Wednesday. A survey showed that the average forecast of nine surveyed institutions is that US crude oil inventories are expected to decline by about 1.3 million barrels in the week ending May 16. An industry insider said on Tuesday that Kazakhstan's oil production increased by 2% in May, ignoring pressure from OPEC to cut production. A technical analyst stated that US crude oil futures are expected to retest the resistance level of $64.20 per barrel. (Wenhua Comprehensive)
[Reprinting requires retaining the source - SMM] US dollar continues to fall, most metals rise, alumina gains over 3%, precious metals rebound strongly, SHFE gold and silver rise over 2% [SMM Daily Review] https://news.smm.cn/news/103337367