[notes of SMM Zinc Internal Morning meeting]

News from SMM6 on the 20th of June,

Zinc Morning meeting: macro: the Fed left interest rates unchanged, but abandoned the word "patience" in its policy statement, opening the door to the first rate cut in more than a decade. The Fed's dovish statement pushed U. S. stocks up for the third time in a row, nearing all-time highs, and Treasury yields tumbled. Fundamentals: yesterday's spot review:

Shanghai: today's zinc futures remain stable, smelters slightly cherish the sale, for the late warehouse receipt inflow expectations, traders are still willing to ship, and the market order is still more active, the early market quotation began with water 200 yuan / ton, the market stored a small amount of transaction performance, but some traders took the lead in adjusting prices to guide the market, quotations quickly reduced to 180 yuan / ton, due to the rising water once again showed an obvious downward trend, the shippers became cautious, but some traders took the lead in adjusting the price to guide the market, the quotation quickly dropped to 180 yuan / ton, due to the obvious downward trend of the rising water again, the receiver became cautious. The quotation is once again guided down to 160 yuan / ton, the overall transaction is relatively weak, the second trading period, the long order transaction is over, and most of the downstream downfall purchases have been completed yesterday, the market trading atmosphere has become weak, the quotation has stabilized in the rising water 160 180 yuan / ton, the overall transaction within the day is not as good as yesterday, the overall trading atmosphere has cooled. Guangdong: normal shipment of refineries, early morning holders have a strong willingness to bid, mostly quoted at the average price of-20, or on the 08 contract rising water around 370 400 yuan / ton, basically did not see more transactions. Entering the second trading period, the holder downgraded the rising water, reporting that the water increased by 290 to 310 yuan / ton for the 08 contract, but there were more replenishment in the downstream two days ago, and the demand for the long single was saturated, superimposed on the upward trend of today's market. The market transaction situation was significantly worse than that of yesterday. Tianjin: refinery normal shipment, the market circulation is relatively abundant, the morning holder reported in the 07 contract rising water 260 to 320 yuan / ton, but the downstream did not contribute to a certain extent, follow-up holders once again cut the rising water to the 07 contract rising water 150 to 320 yuan / ton, the market transaction has not received a significant boost. Tianjin market spot water rapid decline, mainly due to Monday and Tuesday when the disk fell more downstream replenishment, superimposed today's upward disk, downstream purchasing willingness to weaken, today's Tianjin market transaction situation is significantly weaker than yesterday. Zinc price: every other day Lun zinc unilateral downward, return to the previous day all increases, KDJ index shows gentle, shows that Lun zinc temporarily no upward trend, or pressure 5, 10 days EMA concussion; Shanghai zinc close negative, above pressure 5 days EMA, KDJ index to form a dead fork, superimposed inventory increase expectations, follow-up action can not be enough, or pressure EMA concussion. Forecast today: expected to run in the range of 2430-2480 US dollars / ton, Shanghai Zinc main 1908 contract or operation in the vicinity of 19550-20050 yuan / ton. Material 0 # domestic fell 230.