Summary of Zinc Morning meeting in SMM on May 7
Spot fundamentals
Shanghai: back after the festival, zinc prices rose, smelter shipments were normal, the market was dominated by shipments, domestic prices in the morning market rose to 110-120 yuan / ton, Shuangyan reported 150-160 yuan / ton, transaction feedback was relatively limited, domestic transactions were smoother with average prices or average prices, and transactions were smoother because the disk was too high, downstream fearing high wait-and-see, Shuangyan, which was mainly downstream consumption, would be quoted downwards. The actual transaction is about 130-140 yuan / ton, the domestic quotation remains stable, the import volume is still less, the mainstream reported water 80 yuan / ton, and the domestic price difference is limited and the downstream buying is weak, the transaction is not good, the transaction between intra-day trading firms is relatively more active, the overall transaction is slightly cooler than before the festival.
Ningbo: on the first day of the holiday, Nonferrous Collective strengthened, Shanghai zinc rose rapidly, and traders actively shipped goods. In the first part of the morning, traders tried to quote a price around 150 yuan / ton for the May contract, 160 yuan / ton for the May contract, 150 yuan / ton for the May contract for Tiefeng and Hualian News, and 140 yuan / ton for the May contract. Disk up market reception sentiment is poor, traders offer little change, in addition to some downstream enterprises just need to buy, the market as a whole trading worse than before the festival.
Guangdong: in the first trading session, futures prices opened low and then rebounded sharply. However, based on the limited arrival of goods in the Guangdong market during the holiday season, the shipments were mainly made at a straight price, but the market wait-and-see mood was strong, and a small number of transactions were made among traders. Kirin, Mengzi, Huize and Tiefeng quoted 4560 yuan / ton for the June contract of zinc in Shanghai. In the second trading session, futures prices fluctuated at high levels, lack of willingness to purchase downstream, traders pressed prices to receive goods, individual holders quoted prices slightly lower, the overall supply and demand sides are relatively deadlocked. Kirin, Mengzi, Huize and Tiefeng quoted 40-50 yuan per ton for the June contract.
Tianjin: today, Shanghai zinc continued to move higher, the spot market downgraded the discount quotation, the quotation is more unified, the ordinary brand lark newspaper in the 05 contract rose 180 yuan / ton, the red dragon newspaper in the 05 contract rose 240 yuan / ton, Chi Hong reported in the 05 contract rose 200 yuan / ton, the fourth ring newspaper in the 05 contract rose 210 yuan / ton, the high price brand Zijin reported 300 yuan / ton to the May contract. Today, zinc prices continue to rise, traders initially offered shipments, but under poor transactions, lower discount quotations, of which lark due to the lack of sustainability in the spot market, resulting in its low quotation, the liquidity of other brands in the spot market has improved compared with April; downstream, a round of inventory has been carried out before the festival, and after today's futures prices rose, the overall willingness to pick up goods is poor. On the whole, the deal was light today.
Today's prediction of zinc prices: overnight zinc recorded a major positive line, breaking through the upper 60-day line and Brin Road rail resistance. Overnight lme inventory decreased by 250t to 100425 t, or 0.25% of lme inventory exceeded the 100000 mark. European and American countries gradually resume work and resume production, restart the economy in stages, however, under the impact of the epidemic, consumption is expected to be limited, still need to pay attention to the impact of the mining end. Overnight Shanghai zinc received the Dayang line, once again to explore the upper Brin Road on the track resistance, the bottom 5 lines to provide support. In the middle and late May, affected by the previous overseas epidemic, imports of zinc concentrate may be greatly reduced, concerned about whether the mine shortage will be transmitted to the smelting end.
Today is expected: Lun zinc price is expected to run in the range of US $1950-2000 / ton, Shanghai zinc main force 2007 contract or run in the vicinity of 16300-16800 yuan / ton. Domestic zinc rose by 100 yuan per ton.
