SMM News: Thursday, the market in the run-up to the G20 summit increased volatility, zinc and nickel wide shock. As of 14:45, Shanghai zinc main contract ZN1908 to 19880 yuan / ton, down 1.00%, Shanghai nickel main contract NI1908 to 101200 yuan / ton, up 0.97%.
In terms of zinc, according to foreign media news, the New Century Resources Company released a research report on the expansion of Queensland Century Zinc Mine on the 25th, which shows that the mine has proved raw ore reserves through mining. It has the potential to add US $422 million in cash flow and extend the life of the mine until 2026. The report also mentioned that the mine's output in the second quarter of this year is expected to hit an all-time high, indicating that the supply pressure of overseas zinc mines is still high. Yesterday LME0-3 rising water latest reported 89 US dollars / ton, the depth back structure is loosened greatly, unifies the downstream start-up rate to decline one after another, the zinc market fundamental aspect is still weak, but the macroscopic aspect has the expectation to improve, the zinc market may aggravate the shock in the near future. On the nickel side, due to the recent leakage of Glencore's New Caledonian nickel iron plant, it should be noted that the short-term event-driven is difficult to support the fundamentals of nickel weakness, and the low maze of nickel iron supply and downstream stainless steel consumption has continued in the near future. At the same time, from June 26, new energy vehicle subsidies have been reduced by 50%. According to research, the start-up rate of the precursor body has dropped by nearly 10% in the near future, and the nickel market is not suitable to catch up.
Operation suggestion: zinc, nickel wait and see. (source: Guoxin Futures)