SMM4 Zinc Morning meeting on March 7: more than 1.3 million of the world's new crown virus cases were targeted by the central bank on Friday to boost market sentiment.
Zinc Morning: more than 1.3 million of the world's new crown virus cases, more than 1/1000 of the infection rate in the United States, and about 1/4 (355000 people) of confirmed cases worldwide [bearish] the Federal Reserve has taken action to push the new small business loan program. Banks are allowed to use these loans as collateral to obtain cash from the Federal Reserve to ease concerns in the banking sector that such low-interest loans are difficult to cash in. The plan is similar to the US government's arrangements for mortgage lenders Fannie Mae and Freddie Mac, with "Shuangmei" lending permits making banks more willing to lend. [Leedo] the British prime minister was transferred to the intensive care unit (ICU) after the symptoms of coronavirus infection worsened, and the number of new cases in France appeared to be stabilizing. Italy has announced the lowest number of new cases in nearly three weeks; Germany plans to gradually relax the blockade after April 19, and the government has put in place a series of measures, including mandatory wearing of masks in public, to help the country gradually return to normal life after ending its coronavirus blockade. Japan will declare a state of emergency in Tokyo and six other prefectures and cities as early as Tuesday to curb the spread of the new crown virus, while the Japanese government is preparing to launch a $990 billion stimulus package to mitigate the impact of the epidemic on the economy. The Prime Minister said the state of emergency would last for about a month, which would give the authorities the right to ask people to stay at home and shut down their businesses. [Lido] at a time when the OPEC+ urged the world to jointly reduce production and protect oil prices, there was a "new rift" between Saudi Arabia and Russia, with the OPEC+ meeting aimed at ending the oil price war postponed from April 6 to April 9. [Lido] China's central bank announced on Friday a 1 percentage point targeted reduction for small and medium-sized banks, which was implemented twice on April 15 and May 15, releasing a total of about 400 billion yuan in long-term funds. At the same time, the interest rate on excess reserves was cut from 0.72% to 0.35% from 0.72% on April 7 for the first time since 2008. [Lido]
Fundamentals: yesterday's spot Review: trading markets are still weak downstream
Shanghai: the period of zinc narrow consolidation, some refineries still cherish the sale. Near the holiday, the market selling intention is strong, the quotation from the rising water 70 or so down to the rising water 60 yuan / ton to the transaction stimulus is still limited, the consignee tends to receive the goods at the average price of-10, the buyer and seller have differences, heard that the average price-5 transaction is relatively OK. Entering the second trading period, the market quotation turned to the May quotation, domestic quoted water 100 yuan / ton, Shuangyan Dongling and other reported rising water 100-120 yuan / ton, the market transaction slightly improved, the holiday near the downstream to purchase goods, the overall transaction slightly warmer than yesterday.
Ningbo: today, Ningbo market transactions remain weak, the first time in the morning, the holdings quoted in the West Mine on the April contract rose 100 yuan / ton, Tiefeng on the April contract rose 120 yuan / ton, Yongchang newspaper on the May contract rose about 170 yuan / ton, converted to that month in April around 100-110 yuan / ton, the remaining small amount of Kirin reported in the April contract rose 130 yuan / ton. Overall, the disk rose today, but the degree of downgrade is very limited, downstream enterprises in the case of poor orders, the willingness to buy is very weak, overall, the transaction situation is worse than yesterday.
Guangdong: in the first trading period, individual cardholders bid higher in the water test quotation stage, but there was no transaction in the high water market, some of the cardholder quotations were loosened, and a small number of transactions were completed in the market. Kirin, Mengzi, Huize and Tiefeng quoted prices for the Shanghai zinc May contract by 30-60 yuan / ton. In the second trading session, futures prices fluctuated near recent highs, insufficient procurement demand downstream, and the willingness of traders to receive goods was also limited. in order to realize the realization of shipments, the holders continued to lower the prices for shipment, and the rising water fell back more obviously. most of the market transactions are contributed by traders. Kirin, Mengzi, Huize and Tiefeng quoted 10-20 yuan per ton for the May contract.
Tianjin: today, Shanghai zinc low shock upward, the spot market to maintain the discount quotation, the quotation is more unified, the ordinary brand red Ye lark and so on in the 04 contract to rise the water 80 yuan / ton near, Chi Hongbao in the 04 contract to rise the water 60 yuan / ton near, the high price brand Zijin to the April contract quotes 100 yuan / ton near. Today, traders maintain a discount quotation, some traders still have hoarding gambling tax reform expectations, superimposed smelters due to the long delivery of long orders at the beginning of the month led to less circulation of goods in the market, the downstream side, is gradually recovering, there are still some downstream enterprise staff are in a state of isolation, at present, just need to purchase. On the whole, the transaction today is flat compared with yesterday.
Inventory: according to SMM, as of April 3, the total inventory of zinc ingots in SIM7 was 292600 tons, down 11400 tons from March 30 and 14400 tons from March 27. This week, a large decline in social inventory was recorded again this week. It is understood that this week, galvanized structural enterprises in Shanghai have a better order, and a stronger willingness to buy leads to go to the warehouse. Tianjin area is mainly driven by large galvanizing plants to go to the warehouse, stack to join the amount of storage is less, the overall go to the warehouse is more significant. Most of the die-casting zinc alloy enterprises in Guangdong and Zhejiang are mainly die-casting zinc alloy enterprises, and the downstream orders are poor, which leads to the poor willingness of enterprises to prepare storage and the degree of storage removal is very little.
Bonded area inventory: according to SMM, as of April 3, Shanghai bonded area zinc ingot inventory of 75400 tons, compared with last week remained flat. According to the SMM, the incoming volume of some ports increased this week, while the inventory of individual bonded warehouses fell, offsetting the overall increase and decrease. At present, some overseas smelters have been shut down one after another, and the subsequent expected inward volume may be relatively limited.
Zinc price: overnight zinc recorded a small positive line, the upper pressure Brin Road middle rail, the lower support 5 / 10 line. Boosted by the good news of crude oil, superimposed overseas epidemic spread of good, Lun Zinc slightly upward, but the epidemic has not yet seen a clear inflection point, weak global demand will limit its upward, it is expected that the space above the zinc price is limited, and the price is expected to operate in the range of 1890-1940 US dollars / ton. It is expected that the contract price of Shanghai zinc 2006 will run in the range of 15300-15800 yuan / ton, and the domestic Shuangyan zinc will increase the contract by 40-70 yuan / ton in April.
Today is expected: Lun zinc or range is expected to run at 1890-1940 US dollars / ton, Shanghai zinc main force 2005 contract or run at 15300-15800 yuan / ton. Domestic zinc rose 460 yuan / ton.