Standard Bank: Weak dollar will limit declines

The Standard Bank issued the base metal daily report on July 14, saying that the base metal reacted differently to Bernanke's testimony, but this reaction was almost all short-lived. Standard Bank stated that although the possibility of QE3 has not been completely eliminated, it is not expected that this probability is particularly high. On the basis of probabilistic weighting, the view of standard banks on commodity positioning remains unchanged: the current industrial demand cycle tends to sell base metals on a rallies.

On the 14th, base metal was treading water to a large extent, and only zinc rose during the period. Given that the LME/SFE arbitrage window closes when the LME price is at $9,700/tonne, Standard Bank believes that the copper price will go down again. There have been reports that the workers’ strike in Chile’s Codelco has ended, and this news may accelerate copper prices.

In general, the weak US dollar on the 14th will limit the decline of any commodity, especially the base metal. The current firm focus of the market is on the concerns of the United States, especially the concerns raised by Moody's decision to place the US sovereign rating on the negative watch list. This, plus any expectation that the European Central Bank will raise interest rates further, will keep the dollar under pressure.

However, the risk remains, and any news or announcement regarding the eurozone debt crisis will see a fresh interest in the euro’s alternative, the dollar.

For data, Standard Bank focuses on US retail sales and commercial inventory data. Since December 2010, U.S. commercial inventories have been rising month-on-month. However, only the final demand will consume inventory, then the stocking of the stock again will be beneficial to the economy.

Aluminum Solar Cable

Aluminum core Solar Cable is a photovoltaic circuit using aluminum as a conductive material. It is widely used in solar power generation systems to transport the electricity generated by solar panels.

Compared with traditional copper solar cable, aluminum solar cable has some obvious advantages, the most important of which is low cost.

1. Low price: Aluminum is a common metal, and its price is cheaper than that of copper. Therefore, the use of aluminum solar cable can reduce the cost of the system and make the entire photovoltaic power generation project more economical.

2. Lightweight: Aluminum has a lower density and is lighter than copper. The aluminum core optical cable can reduce the weight of the cable and facilitate installation and maintenance.

3. Strong corrosion resistance: Aluminum has good corrosion resistance and can maintain a long service life under harsh environmental conditions. This makes the aluminum solar cable more reliable for outdoor use.

4. Excellent conductivity: although the conductivity of copper is higher than that of aluminum, the aluminum solar cable can make up for the shortcomings of the low conductivity of aluminum to a certain extent by optimizing the design and process and ensure the efficiency and stability of power transmission.

It should be noted that there are also some limitations and precautions for aluminum solar cable. Due to the low conductivity of aluminum, the resistance of the aluminum solar cable will be relatively high, so it is necessary to choose the wire diameter and length reasonably when designing and installing to ensure the efficiency of power transmission. In addition, aluminum is prone to electrochemical reactions when it comes into contact with copper, so corresponding measures need to be taken when connecting aluminum solar cable and other components, such as using special connectors or coating protective layers.

In general, aluminum solar cable with its low cost, corrosion resistance, light and other advantages, has been widely used in solar power generation systems, and brings economic and reliability benefits to photovoltaic power generation projects.

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