[summary of SMM Morning meeting] small non-farmers lead Lun Zinc to rise. Shanghai Zinc fundamentals are weak and difficult to follow.

Minutes of the morning meeting of zinc in SMM on July 2nd

Spot fundamentals

Shanghai: the smelter shipped normally within the day, and the traders mainly shipped. At the beginning of the morning market, the market reported a rise of 90 yuan per ton, with a small number of transactions. With the increase in zinc price, the transaction turned worse, and the market quotation was lowered to about 80 cents per ton to stabilize, or the average price floated about 5 yuan per ton, and there was a small amount of trading about 80 yuan per ton. The market further lowered the quotation willingness to lower the quotation, and the rising water remained stable. While Shuangyan, Chi Hong quoted a rising water of about 110 yuan / ton, due to the lower volume of goods, quoted price higher than Shuangyan 5mur10 yuan / ton, while the import circulation gradually reduced, SMC quoted rising water 60 murals 70 yuan / ton or so, with the support of the price difference, the downstream is not reduced in favor of imports, but the overall procurement to maintain the on-demand rhythm, replenishment is more cautious, the overall turnover within the day is slightly warmer than the day before. (lidocaine)

Ningbo: the price of zinc was adjusted back yesterday, and the traders intended to make a straight price shipment. in the first period of the morning, Tiefeng was reported near 110 yuan / ton for the July contract, and 90 yuan / ton for the July contract. Kirin reported that the water rose around 120 yuan / ton for the July contract, and the market transaction was poor. Kirin lowered the water price into the second period of time, and reported a water increase of 110 yuan / ton for the July contract. Follow-up market transactions improved slightly. Overall, yesterday's zinc price correction, downstream enterprises to buy significantly better, compared with the day before yesterday, the transaction situation has warmed up. (lidocaine)

Guangdong: the first trading session, although the price center of gravity has moved down compared with the day before yesterday, but the overall price is still on the high side, it is difficult to attract downstream to increase procurement, the holder in the lack of buying support, coupled with the narrowing of the futures monthly difference, the market is difficult to raise the quotation for the next month. Kirin, Mengzi, Huize and Danxia quoted for the Shanghai zinc contract in August, the water rose by 30mur40 yuan / ton, and Tiefeng water rose by 2030 yuan / ton. In the second trading session, traders mainly buy at a low price, but the price is too low, the willingness of the holder to ship goods decreases, the supply and demand sides show a slight stalemate, and the market transaction is general. Kirin, Mengzi, Lan Zinc quoted price for Shanghai zinc contract in August rose 35mur40 yuan / ton, Tiefeng water rose 20 yuan / ton. (bullish)

Tianjin: yesterday, Shanghai Zinc rebounded upwards, and the spot market slightly lowered the discount quotation, which was relatively uniform. The ordinary brand Bering News quoted a rise of 130 yuan / ton for the 07 contract, and Hongyi quoted a rise of 140 yuan / ton for the 07 contract. Chi Hong quoted a rise of 130 yuan / ton for the 07 contract, and the high-priced brand Zijin quoted a rise of 170 yuan / ton for the July contract, while Baiyin quoted a rise of 150 yuan / ton for the 07 contract. Yunxi Daily quoted a rise of 70 yuan per ton for the 07 contract, Xikuang (delivered to) quoted a rise of 60 million yuan per ton for the 07 contract, KZ/YP quoted a rise of 100 yuan per ton for the 07 contract, and Harbin Zinc (including the depot) quoted a rise of 50 yuan per ton for the 07 contract. Zinc prices fell slightly yesterday, superimposed Zijin factory did not ship yesterday, traders Zijin brand price delivery, general transaction, the rest of the brand maintained the previous day's quotation; downstream, yesterday's zinc plate weakens slightly, downstream enterprises do not significantly improve the willingness to receive goods, mainly low-cost brands. On the whole, yesterday's turnover was slightly better than that of the day before yesterday. (lidocaine)

Today's forecast zinc price: overnight Lun Zinc received the shadow line attached to the small pubic column, broke through the support of the 20th line, tested the support strength of the middle rail of Bollinger Road, and expanded the negative column of MACD. Overnight LME inventory fell 25 tons to 122550 tons, or 0.02%, still high. Overseas macro-favorable increase in infrastructure investment pre-pull Lun Zinc terminal consumption, market optimism heats up, support Lun Zinc upward, but the development of the epidemic limits the process of economic recovery and suppresses the upward space of Lun Zinc. Pay attention to the development of the epidemic in the short term. Overnight, Shanghai zinc received a small positive pillar, the upper 10 lines were pressed, the support strength of the 20-day line was tested below, and the opening of KDJ was expanded downwards. Macroscopically positive to boost zinc prices, but under the background of weakening consumption, smelters are mainly increasing production and resuming production, the pressure of supply and demand is greater, and the action of zinc in Shanghai is limited.

Today's forecast: the price of lun zinc is expected to run in the 2060 US dollars / ton area in 2010. It is expected that the contract price of Shanghai Zinc 2008 will run within the range of 16400 Mel 16900 yuan / ton, and it is expected that domestic zinc will drop 30 yuan / ton.