[2019.10.17 minutes of Zinc Internal Morning meeting] overnight Zinc pressure Operation spot Market in Shanghai is relatively light

SMM October 17 Zinc Morning meeting:

Zinc Morning meeting: macro: U. S. President China has begun to buy U. S. agricultural products, he may sign a trade agreement with China in November. It is reported that the European Union believes that a Brexit agreement is no longer possible unless the British government takes action. China continued to reduce its holdings of US debt in August. The Federal Reserve Brown Book moderately downgraded its economic assessment. The dollar funding market is showing signs of renewed pressure. The State Council of China has demanded that foreign-funded enterprises should not be forced to transfer technology in disguise. U. S. senators urged the Senate to speed up the vote on the Hong Kong-related bill. Renminbi forecasters believe the yuan could rise above 7 in the fourth quarter.

Fundamentals: yesterday's spot Review: traders turn to light downstream buying more cautiously

Shanghai: in the first trading session, some holders of ordinary brand zinc ingots sold at an average price of 5 yuan / ton to SMM net, with an increase of 110-120 yuan / ton on the 1911 contract, and the mood of shipment and receipt in the market was relatively low. In the second trading session, zinc prices continued to weaken, and the holder maintained a price increase of 110-120 yuan / ton on the 1911 contract. The first batch of long order delivery ended, traders market trading is relatively light, some downstream enterprises today bargain replenishment, transactions slightly better than yesterday, but the market as a whole trading in general.

Guangdong: refinery normal shipment, the market supply circulation is more abundant. The morning quotation of the holder is concentrated in the average price of-10 yuan / ton, part of it is quoted around the average price of-20 yuan / ton, and the holder quotes the contract quotation around 30-40 yuan / ton on the 11th contract; entering the second trading period, the market transaction price is still concentrated in the discount of 3040 yuan / ton on the 11th contract, the downside, the downstream wait and see, the willingness to buy is still deviated, and a small amount of trading is contributed by traders. Overall, today's Guangdong market transactions basically extended yesterday's light situation.

Tianjin: refinery shipments are normal today. In the market, the shortage of goods still exists. The quotation of high-priced brand source is concentrated in about 140-180 yuan / ton of 11 liter water, and the quotation of ordinary brand source is about 80-120 yuan / ton of 11 liter water. Disk downward, rising water stable, the market wait-and-see mood is becoming stronger, the downstream willingness to buy is still weak, only to maintain rigid demand to pick up goods. Overall, today's deal continues yesterday's light atmosphere.

Zinc price: overnight zinc turns positive to receive yin, with shadow line thorn 5-day moving average support strength, KDJ index has a slight downward trend, indicating that the action on zinc is weak. The decline in LME zinc stocks has narrowed, and the overseas back structure has also narrowed, superimposed on weak US retail data and zinc prices or under pressure. Yesterday, the LME zinc 0-3 liter discount was $20.25 a tonne. Overnight, although Shanghai zinc received a small yang line, but the overall sinking to Brin Road near the middle track, KDJ index turning down, MACD red column is also shortened, indicating that Shanghai zinc action energy is insufficient. Superimposed overnight US retail data could exacerbate market pessimism and run under pressure in Shanghai during the day.

Today is expected: Lun zinc or interval transportation 23902440 US dollars / ton, Shanghai zinc main force 1911 contract or run in 18600-19100 yuan / ton. Domestic zinc rose 10 yuan per ton.

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