[summary of SMM Morning meeting] Zinc in Shanghai was first suppressed and then increased after being driven by the outer disk.

Summary of the morning meeting of zinc in SMM on July 28th

Spot fundamentals

Shanghai: in the morning, the holder raised the water quotation, and the transaction of the ordinary zinc brand in the market was concentrated near the average price of the SMM net. The market followed the quotation early in the morning for the 2008 contract to raise the water price 80 yuan / ton, and then some of the consignors raised the water quotation to 85 yuan / ton; entering the second period of time, the market trading was insipid, and the holder maintained the rising water quotation. The futures market maintained a strong trend, the lower reaches purchased on demand yesterday, the market trading was still good, and traders actively shipped at high prices. (lidocaine)

Guangdong: in the first trading session, the holder initially shipped the goods at a relatively straight price, but the price was high and fluctuating, the downstream wait-and-see mood was strong, the market price was difficult, and the quotations of some consignors in the later period were loosened. Kirin, Mengzi, Huize, Tiefeng quoted a discount of 10 yuan / ton to flat for the September contract of Shanghai zinc. The second trading session, downstream only rigid demand procurement, individual holders hang order price is higher, can appropriately reduce the discount range of shipment, pressure spot up discount performance, transactions are mostly contributed by traders. Kirin, Mengzi, Huize, Tiefeng quoted for Shanghai zinc September contract water 10 yuan / ton to Pingshui. (bullish)

Ningbo: zinc prices fluctuated higher yesterday. In the first trading session, Tiefeng, Xikuang and Nanhua newspaper raised 100-110 yuan / ton for the August contract, Kirin reported about 120-140 yuan / ton for the August contract. Huize reported that around 150 yuan / ton for the August contract, Ningbo market trade activity declined, coupled with the sharp fall in zinc prices last Friday has stimulated downstream buying and buying, the market wait-and-see mood is stronger, trading is light. The overall market turnover was mediocre. (bullish)

Tianjin: yesterday, Shanghai Zinc concussion rose, and the spot market raised the discount quotation. The price is relatively uniform. The ordinary brand Bering News quoted 180 yuan / ton for 08 contract, Hongyi quoted 210-220 yuan / ton for 08 contract, Chi Hong quoted 200 yuan / ton for 08 contract, high-priced brand Zijin quoted 260 yuan / ton for August contract, Baiyin Bao quoted 150 yuan / ton for 08 contract. The fourth Ring Road (delivered) quoted 120 yuan / ton of water for the 08 contract, and Ha Zn (including the depot) quoted 80 yuan / ton for the 08 contract. Zinc prices fluctuated and rose yesterday. In the first period, Tianjin extended the quotation for rising water last week, entering the second period. Due to the shortage of spot liquidity, traders and smelters raised and pasted water to ship goods; downstream, yesterday's rising water prices both rose, downstream enterprises maintained rigid demand procurement. On the whole, yesterday's transaction was the same as that of last week. (bullish)

Today's forecast zinc price: overnight Lun zinc recorded a positive pillar, the lower 10-day line to form a support, KDJ indicators to become a golden fork. Overnight LME inventory increased by 4325 tons to 158825 tons, an increase of 2.8%. Overnight non-ferrous metal rose, Len Zinc continued to fluctuate at a high level, and the vaccine was boosted by good news and the new economic stimulus plan in the United States. Lun Zinc operated strongly, but the development of overseas epidemics and geopolitical risks are expected to limit the upward space. Overnight Shanghai zinc recorded a positive column, the upper Bollinger Road on the rail to form a compression, the lower 10-day line support, MACD positive column narrowed. Overnight, driven by the outer disk, Shanghai zinc showed a trend of first suppressing and then rising, with continuous macro-overseas economic stimulus, superimposed peak season and flood season reconstruction consumption expectations, positive profits of domestic industrial enterprises to boost the trend of Shanghai zinc.

Today's forecast: the price of lun zinc is expected to operate in the range of 2200-2250 US dollars per ton. The contract price of Shanghai Zinc 2009 is expected to run in the range of 18000-18500 yuan / ton, and domestic zinc is expected to rise by 310 yuan / ton.