Nonferrous Metals: The overall strength of metal prices, gold performance outstanding

The overall strength of non-ferrous metals this week, LME metal price index rose 0.7% a week. The trend of different metals was obvious, copper, nickel and zinc rose 3.5%, 2.7% and 1.7% respectively, and aluminum, lead and tin fell 5.3%, 2.8% and 0.6% respectively.　　Domestic metals continue to maintain a weak, Shanghai Hkfe in the month period copper fell 0.5%, closed at 36,460 yuan/ton. Gold prices have been outstanding in comparison to industrial metals, up 7.6% per cent over the past 1 months. The rise in gold prices is related to factors such as the recent depreciation of the dollar and higher oil prices. The main factors that affect the gold price trend in the future include: 1 when the global economy is out of the trough. The longer the economy continues to slump, the more the risk aversion of gold will become more pronounced; 2 inflation expectations; The historical data show that gold returns are higher than other investments in the inflation cycle, 3 dollar depreciation, and 4 official gold reserves change.　　If developing countries, including China, continue to increase their holdings of gold, this will push up the price of gold. Mine production and smelting capacity recovery led to the import of zinc concentrate processing costs are lower, and domestic zinc concentrate processing costs are always less than 4,500 yuan/ton. At the same time, zinc smelting by-products of sulfuric acid demand continues to slump, most smelters are filled with sulfuric acid cans, and is threatening the domestic zinc smelting enterprises operating rate.　　Once the zinc smelter has cut production, it is likely to push up the price of zinc further. In the electrolytic aluminum production capacity restart, the domestic alumina enterprises have also restarted production capacity, and the price of alumina again lower. At present, the domestic alumina price is close to 2,000 yuan/ton, the import of alumina to the shore price also fell to 2,075 yuan/ton.　　As Chinalco's aluminum price is still 2,300 yuan/ton, it means the company's alumina offer is still likely to be lowered. We recently conducted a survey of downstream enterprises in copper. Understand that the vast majority of domestic enterprises are not optimistic about short-term copper price trend. It is believed that with the advent of the consumption off-season, the consumption of the depressed situation will be a crackdown on copper prices, and it is expected that the copper will return to the vicinity of 4,000 U.S. dollars/ton, Shanghai Copper may fall to 35,000 yuan/ton position. Barter Metal this week, the results of 21 copper tube companies also showed that, due to the off-season, copper pipe production enterprises in May, the overall operating rate of 78.6%, the chain down 3%, of which small and medium-sized enterprises operating rate fell more obvious.