SMM News: on Friday, the macro recovery of the Lido mood digestion, the fundamentals of weak zinc and nickel fell sharply. As of 14:55, Shanghai zinc main contract ZN1908 to 19460 yuan / ton, down 1.87%, Shanghai nickel main contract NI1908 to 98390 yuan / ton, down 1.38%.
On the zinc side, the report released by the international lead and zinc research group (ILZSG) on Thursday showed that the global zinc market supply shortage increased to 97000 tons in the first four months of this year, compared with 53000 tons in the same period last year, while the domestic refining supply increased after June, the gap material narrowed sharply, the downstream consumption entered the off-season, cars continued to be depressed, medium-and long-term fundamentals were not optimistic, and the latest LME0-3 water supply was 101.5 US dollars per ton. Compared with the last trading day narrowed again, the early support of the zinc price of the depth of BACK structure began to loose, but the recent macro optimistic expectations, zinc market wait-and-see. On the nickel side, sales of new energy vehicles rose only 7% in May from a year earlier, down 17% from a month earlier, superimposed on June 25 subsidies for a comprehensive retreat, and the recent frequent occurrence of safety accidents, there are doubts about the support of electric vehicles in the future. The positive mood of the macro mood has gradually digested, Indonesian production has also returned to normal, the future nickel market is expected to return to fundamentals, and the excess supply of ferronickel and downstream stainless steel will continue to decline or continue, and nickel prices are prone to fall and rise in the near future.
Operation suggestion: zinc, nickel wait and see. (source: Guoxin Futures)