[notes of SMM Zinc Internal Morning meeting]

SMM7, 25th, news:

Zinc Morning meeting: macro: the White House confirmed that Trade Representative Lettershitzer and Treasury Secretary Mnuchin will travel to China for economic and trade talks next week. Mnuchin said a strong dollar is good for the U. S. economy in the long run. Us sales of new homes fell short of forecasts in June, after three months of downward revisions to sales figures, indicating a weak housing market. Germany's manufacturing PMI fell to its lowest level in seven years in July, an indicator that suggests the likelihood of a recession in Germany continues to rise. Manufacturing PMI in the euro zone was below the boom-bust line in July, while manufacturing PMI in France was lower than expected in July.

Fundamentals: yesterday's spot review:

Shanghai: the center of gravity of zinc futures operation has moved up slightly, the market circulation has increased and most of the long orders have ended within a month. From the cost point of view, the willingness of traders to receive new orders has been significantly weakened, while the downstream rally has once again turned to wait-and-see, mainly to digest inventory, and the atmosphere of more and less trading in the market has obviously become weaker. The morning market leader single transaction is still based on the net average price as the benchmark transaction is more smooth, but the average price rises 5 to 10 yuan / ton to receive the goods is stronger, and the rising sticker water quotation is concentrated in the rising water 70 to 80 yuan / ton or so, the trading parties save 10 yuan / ton differences to fall into a stalemate, the transaction is not as good as yesterday, the second trading period of the market is still mainly shipping, the quotation has not changed significantly, the overall trading is slightly less than yesterday.

Guangdong: normal shipment of refineries, abundant circulation of goods in the market. In the morning, the quotation of the holder focused on the discount of 40-30 yuan / ton to the 09 contract, but the market trading atmosphere continued to be dull. After entering the second trading session, some holders reduced the discount to about 50 yuan / ton to the 09 contract, but the market catcher's willingness to receive the goods around the 09 contract discount of 60 yuan / ton, traders trading differences appeared, temporary stalemate, the subsequent part of the holder down to the 09 contract discount of 60 yuan / ton, contributing to a small amount of transactions. Overall, the transaction situation in Guangdong today is worse than that of yesterday.

Tianjin: the refinery is shipped normally, and the market supply of goods is abundant. In the morning, the quotation of the holder focused on the discount of 40-30 yuan / ton to the 09 contract, but the market trading atmosphere continued to be dull. After entering the second trading session, some holders reduced the discount to about 50 yuan / ton to the 09 contract, but the market catcher's willingness to receive the goods around the 09 contract discount of 60 yuan / ton, traders trading differences appeared, temporary stalemate, the subsequent part of the holder down to the 09 contract discount of 60 yuan / ton, contributing to a small amount of transactions. Overall, the transaction situation in Guangdong today is worse than that of yesterday.

Zinc price: overnight zinc recorded Sanlianyang, on the shadow line on the 40-day moving average suppression, the United States finger to boost the long position upward, the macro mood within the day may dissipate, Lun zinc may have a downward finishing trend. Overnight Shanghai zinc recorded a negative line, the overall pressure Brin Road middle rail operation, macro mood under the influence of Shanghai zinc night high jump operation, but their own fundamentals do not have a strong support, Shanghai zinc within a day or will give up the increase operation. Material 0 # domestic double swallow zinc increased by 50 to 90 in August.

Today, it is expected to run in the range of $2420 to $2470 per ton, while the main 1909 contract of Shanghai Zinc is expected to run around $19000 to $19, 500 per ton. Material 0 # domestic zinc fell 10