SMM October 11 Zinc Morning meeting:
Zinc Morning meeting: macro: representatives from both sides hinted at cautious optimism about reaching some agreements after the first day of economic and trade consultations between China and the United States. Trump said it was "very smooth" and would meet with Chinese Vice Premier Liu he on Friday. Brexit is also in the dark, with British and Irish leaders endorsing a potential path to a Brexit deal after constructive talks; sterling has seen its biggest gain in seven months. The US consumer price index (CPI) fell by 0.1 per cent in September, with core inflation falling, supporting expectations that trade tensions posed a risk to the economy as the Fed cut interest rates for the third time this year in October. Initial jobless claims fell unexpectedly to a three-week low last week, and improvements in the economic and shopping environment pushed the consumer comfort index slightly higher last week. Chinese banks have issued a record nearly 1 trillion yuan in bonds to replenish capital to support the real economy.
Fundamentals: yesterday's spot review: the disk surface rises downstream to buy more cautiously
Shanghai: in the first trading period, the holder mainly quoted the average price of SMM net, some of the holders reported a rise of 130 yuan / ton to the 1911 contract, but the spot discount transaction was weak, and the holder dropped to 1911 yuan / ton. In the second trading session, the zinc price continued to be weak, and the holder slightly raised the water quotation, some reported to the 1911 contract rose 130 yuan / ton; the second trading period, the zinc price continued weak downward line, the holder slightly raised the water quotation, some reported to the 1911 contract rose 130 yuan / ton; Near the first batch of long single delivery, traders are active in the market, so the spot price rising water is relatively strong, downstream as zinc prices are still in the low rebound high, procurement is more cautious, mainly to replenish the warehouse on demand.
Guangdong: in the morning, the quotation of the holder is concentrated in the discount of 30 yuan / ton to the 11 contract, and some of the holders are reported near the average price. Most of the market is mainly inquiry, and the trading atmosphere between traders is fair. Enter the second trading period, the holder of part of the non-deliverable brand quotation in the 11 contract posted about 40 yuan / ton, the market transaction atmosphere slightly warmed up, the downstream rally did not have an obvious willingness to buy, mostly wait-and-see and inquiry-based, trading today is mainly contributed by the single demand of the trader. The transaction situation in Guangdong today is slightly worse than yesterday.
Tianjin: refinery shipments are normal today. In the market, the supply of goods has increased, but overall it is still tight. The quotation of the source of high-priced brand is about 150-220 yuan / ton to 11, and that of ordinary brand is about 150 yuan / ton to 11. The disk pulled up, the holders have downgraded the rising water, from the beginning of trading on the 11 contract rose 220 yuan / ton to 150-190 yuan / ton around. On the third trading day after the festival, the market rose so that the mood of inquiry and wait-and-see became stronger and stronger, and there was little interest in buying downstream. On the whole, the transaction today is once again worse than yesterday.
Zinc price: overnight zinc received three Lianyang, recorded a long positive line, the operating range from Brin Road in the lower rail directly jumped to the upper rail, LME zinc inventory continued to decline, superimposed overseas back structure to expand again, Lun zinc or there is a certain support, but the message surface stimulus effect gradually retreated, Lun zinc or return to the fundamentals of weak operation. The LME zinc 0-3 liter discount was $36 a tonne yesterday. Overnight, Shanghai zinc turned to yang to collect yin, supported by the lower road moving average, overnight Shanghai zinc was stimulated by news, and the increase in positions was mainly based on the long part to boost the zinc price. However, after the enthusiasm dissipated, Shanghai zinc may be strongly suppressed by the upper Wanjiu pass and fall back.
Today is expected: Lun zinc or range is expected to run at 2330-2380 US dollars / ton, Shanghai zinc main force 1911 contract or run at 18500-19000 yuan / ton. Domestic zinc rose by 150 yuan per ton.
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