[summary of SMM Morning meeting] overnight, the downstream of Shanghai Zinc High concussion maintained just need to purchase.

Minutes of the morning meeting of zinc in SMM on July 17th

Spot fundamentals

Shanghai: the morning holder controls the delivery rhythm, the market receiving sentiment is high, the market ordinary zinc brand transaction concentrates on the SMM net average price to rise 5 yuan / ton, the market follows the order quotation early to 2008 contract rises 80 yuan / ton, later part of the consignor raises the rising water quotation to 90 yuan / ton; enters the second period, the market quotation is relatively stable, the holder raises the rising water quotation to the 2008 contract price 90,00095 yuan / ton; Futures market zinc price volatility fell, downstream on-demand procurement, market trading is still good, trade between low rising water hoarding desire is strong, spot rising water upward throughout the day. (lidocaine)

Ningbo: zinc prices adjusted slightly yesterday, Ningbo market traders followed Shanghai traders to raise prices, some traders quoted prices on the high side, but some traders actively shipped prices on the low side, or even a discount compared to the Shanghai area. In the first trading session, Tiefeng reported a rise of 90 yuan per ton for the August contract, a rise of 70 yuan per ton for the August contract, and a rise of 100 yuan per ton for the August contract. Huize did not arrive. Entering the second period of time, there was no obvious change in the rising water in the market. Zinc prices adjusted slightly yesterday, and downstream inquiries increased, but the actual turnover was still light. (bullish)

Guangdong: in the first trading session, prices were high and fluctuating, there were still few purchases downstream, the shipments of the holders were not smooth, and the market quotations were basically the same as the day before yesterday, but after the futures changed months, the market turned to more quotations for 2009 contracts. Kirin and Mongolia quoted water for the Shanghai zinc contract in September by 30 Meng 40 yuan / ton. Tiefeng 35 yuan / ton, blue zinc 25 yuan / ton, Danxia 50 RMB60 / ton, Tiefeng 35 yuan / ton, blue zinc 25 yuan / ton, Danxia 60 yuan / ton. In the second trading session, futures prices fell, downstream entered the market to buy a little, individual holders tried to push up the price, the quotation was relatively high, traders received goods at lower prices, and the transaction was better than the first trading session. Kirin, Mongolia since the quotation for Shanghai zinc contract in September, 30murals 45 yuan / ton, Danxia Shengshui 50 murals 60 yuan / ton. (lidocaine)

Tianjin: yesterday, the weak consolidation of zinc in Shanghai, the spot market maintained a rising discount price, and the price was relatively unified. The ordinary brand Bering News quoted a rise of 110 yuan per ton for the 08 contract, and Hongyi quoted a rise of 120 yuan per ton for the 08 contract. Chi Hong quoted a rise of 100 yuan per ton for the 08 contract, while the high-priced brand Zijin quoted a rise of 150 yuan per ton for the August contract, while Baiyin quoted a rise of 100 yuan per ton for the 08 contract. The fourth Ring Road (delivered) quoted 100 yuan / ton of water for the 08 contract, and Ha Zn (including the depot) quoted 60 yuan / ton for the 08 contract. The decline in zinc prices widened yesterday, traders maintained rising water prices, and Zijin Factory made a positive price shipment in the morning, but when the transaction was not smooth, the water was also lowered to 160 yuan / tonne. Downstream, the absolute price fell again yesterday, but downstream enterprises were not willing to receive goods and maintained the need for weak procurement. On the whole, the turnover in Tianjin market was flat yesterday compared with the day before yesterday. (bullish)

Today's prediction of zinc price: overnight Lun zinc recorded a small positive pillar, waist through the 5-day moving average, Bollinger Road on the track to form a suppression, KDJ index adhesion. Overnight LME inventory decreased by 450t to 122525 t, or 0.37%. Sino-US relations have deteriorated further, and US economic data show that the economic recovery is slowing, market concerns are rising, and zinc prices are bearish macroscopically. Recently, attention to the approval of the EU recovery Fund is expected to support the trend of Lunzheng. Overnight Shanghai zinc received a bare foot in the positive column, the upper Bollinger Road on the rail to form a compression, the lower 10-day moving average to provide support, MACD index Yang column narrowed. Overnight, Shanghai Zinc was also strong driven by the upside of the outer disk, and overseas and domestic economic data boosted market confidence. However, the continued fermentation of Sino-US trade relations limited the upside of Shanghai Zinc. Pay close attention to the development and changes of Sino-US trade relations in the short term.

Today's forecast: the price of lun zinc is expected to run in the range of US $2170 / ton. It is expected that the contract price of Shanghai Zinc 2009 will run within the range of 17,500 Mel 18000 yuan / ton, and domestic zinc is expected to rise by 30 yuan / ton.