Resource stock review - June 16

On June 16, the domestic commodity futures market generally rose. Most agricultural products rose, palm oil rose nearly 6%, soybean oil and soybean oil rose nearly 5%; energy chemicals generally rose, styrene rose nearly 3%, asphalt and fuel rose more than 2%; black rose across the board, coking coal rose more than 2%; basic metals rose across the board, Shanghai and Xi rose more than 2%; and precious metals all rose.

Data show that in May, the value added of large-scale industries in China increased by 3.5% year-on-year, and total retail sales of social consumer goods increased by 12.7%. In January-May, fixed asset investment increased 4% year on year, and real estate development investment fell 7.2%. The unemployment rate in the May National Urban Survey remained flat at 5.2%. Among them, the unemployment rate in the 16-24 labor force survey was 20.8%.

The number of jobless claims in the US until the beginning of the week of June 10 was 262,000, with an estimated 249,000; the previous value was revised to 262,000; the number of jobless claims for the current week was 1.775 million, with an estimated 1.75,000, with an estimated 1.75,000, compared to the previous value of 1,755,000.

The European Central Bank announced an interest rate hike of 25 basis points as scheduled without fear of recession, raising interest rates to the highest level since 2001, and said it would stop reinvesting under asset purchase plans starting in July. At the same time, the European Central Bank raised its CPI growth forecast for 2023-2025 and lowered its GDP growth forecast for this year and next two years.

As MLF interest rates are lowered, the LPR to be announced on June 20 is expected to continue to be lowered. It is not ruled out that the LPR for 5 years or more will be adjusted even more. On June 15, China traded 1,315 million tons of iron ore in Hong Kong, an increase of 49.9% over the previous month. In terms of fundamentals, the volume of shipments from Macau and Brazil and Hong Kong has increased month-on-month, and demand has peaked and declined. Iron ore fundamentals are gradually weakening, but in the short term, pig iron production is at a high level, steel mill ore stocks are low, and mineral price performance is strong.

Shanzheng Iron Ore (3047.HK) closed at HK$17.21, down 0%

Cumulative Return: 1 Week: 2.59% January: 10.66% March: -1.91% June: 8.93% Launch to Date: 134.09%

Financial News Agency, June 16. Xiangdian Co., Ltd. announced that its wholly-owned subsidiary, Xiang Electric Power, plans to jointly rebuild Angang Steel Technology with Angang Steel Co., Ltd. and employee shares. After rebuilding, Angang Steel Technology's registered capital will be RMB 60 million.

As lepidolite lithium extraction technology has improved, costs have dropped dramatically. At the same time, demand for lithium ore has risen simultaneously with the rise of the new lithium battery industry, and the willingness to develop the market has increased dramatically. Therefore, the lithium mine in Yichun has an obvious advantage in rapidly releasing increased lithium resource supply in the mainland. However, with the rapid increase in the scale of development and utilization of lithium-containing ceramic soil mines, the output of feldspar powder and lithium slag will increase significantly. Scientific disposal and comprehensive utilization of feldspar powder and lithium slag have become issues requiring special attention and solutions in the development of the local lithium battery new energy industry.