Metals News
[SMM Analysis] LME inventory increases greatly & another attack on Environmental Protection in North China
The content below was translated by Tencent automatically for reference.

SMM4 26: two newsletters are inserted here:

[LME stocks have soared and zinc prices have fallen endlessly? ]

As of April 24, 2018, LME zinc inventory is still maintained at about 2000 tons per day, inventory and write-off warehouse receipts at the same time, only the dominant fundamentals can be said to be multi-empty doping, directional choice is difficult to determine.

On April 25, the LME delivery storm hit again. the location of the delivery was no longer the long-watched warehouse in New Orleans, the United States, but in Antwerp, Europe, Belgium, since emptying stocks on January 25 this year. Antwerp ushered in 50075 tonnes of zinc in two days, while inventories in New Orleans continued to decline steadily, with write-off receipts squeezed to 5.42 per cent. There is still no clear news as to whether the second large-scale position of the year will come to an end, but fragile fundamentals have been hit, long funds may continue to wait and see in the short term, and short sentiment remains dominant. The support of the $3100 / ton integer psychological bit can still be expected.

[the impact of the renewed attack on environmental protection in North China on the production of local galvanizing enterprises is temporarily limited]

Recently, due to a new round of environmental protection attacks, SMM research has learned that the production of iron and steel and other enterprises in many regions has been affected to a certain extent. Within the day, there are rumors that acid-related enterprises in Beijing-Tianjin-Hebei region have been completely shut down, because galvanizing enterprises are also involved in the pickling process, through SMM investigation to understand that the acid-related inspection has little impact on galvanizing enterprises.

SMM learned that there is indeed a shutdown for rectification in Langfang area, Bazhou, Hebei Province, but most of the relevant rectification enterprises are small enterprises that do not meet the environmental standards or do not have pickling equipment, and these small scattered galvanizing enterprises have a low operating rate before. The large factories that meet the environmental protection standards have been affected relatively limited this time, while in Tianjin Tangshan and other areas, due to the upgrading of environmental protection technology in the early stage, the pickling problem has basically been solved and has not been affected for the time being, and most of them can maintain normal production.

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