SMM4 Zinc Morning meeting on the 10th of May: crude oil production reduction agreement reached, but less than expected spot transactions in the zinc market slightly warmed up.
Zinc Morning meeting: macroscopically: Saudi Arabia and Russia have ended the oil price war and reached a deep consensus to cut production. According to the representative, all members of the OPEC+ will implement production cuts of about 10 million barrels per day in May and June, while Saudi Arabia and Russia will reduce their respective production to about 8.5 million barrels per day over the same period. G20 energy ministers will meet online at 3pm Riyadh time on Friday, and the OPEC+ is understood to want G20 countries other than OPEC+ to cut production by an additional 5 million barrels a day. [Lido] the Fed launched a new $2.3 trillion stimulus package, announcing that it would buy junk bonds to support small businesses and lend up to $500 billion to state and municipal authorities. The Fed will use all its power "forcefully, proactively and actively" to drive the recovery, the chairman said. the Fed's balance sheet rose to a record $6.08 trillion in the week to April 8; [Lido] EU finance ministers have agreed on a $590 billion bailout package, but final approval from EU leaders is still needed. The summit could be held as soon as next week. The number of first-time jobless claims in the United States last week was 6.61 million. The cumulative total of three weeks reached about 16.8 million, and the University of Michigan consumer confidence index fell the most in April, the lowest since 2011. Figures released by the passenger Association showed that sales of generalized passenger cars in March were 1.08 million, down 40 per cent from a year earlier and up 320.5 per cent from the previous month. [bearish]
Fundamentals: yesterday's spot Review: traders actively ship downstream transactions pick up
Shanghai: in the first period of the morning, the market is dominated by long single trading, and the market trading is more active. The mainstream transaction in the market is concentrated in the average price of SMM net or discount 5 yuan / ton. Some holders quoted 70% 80 yuan / ton for the 2005 contract, and 90 yuan / ton for Gaoshengshui, but the transaction pressure is still large. Entering the second period, the spot rally was relatively stable, with some holders offering 80 yuan / ton to the 2005 contract, with a low price of 70 yuan / ton; the zinc price fluctuated downwards, and the inquiry in the second downstream period increased, and the overall trading was better than yesterday. In addition, trading in the trading market is active today, and the current market downstream procurement is mainly falling and buying more, and trading in the higher market will be significantly weaker.
Ningbo: zinc prices fell slightly, traders today to maintain yesterday's offer, active shipment. In the morning, brands such as Tiefeng, Hualian and Xijiao reported an increase of about 120 yuan / ton on the May contract, and Yongchang newspaper raised the water by 110-120 yuan / ton on the May contract, but most of the transactions were 110 yuan / ton. Today, the market procurement willingness is relatively low, basically just need to purchase, the overall transaction atmosphere is more insipid, compared with yesterday's transaction situation is basically flat.
Guangdong: in the first trading period, the shipments of the shippers were relatively positive, and some of the shippers took the initiative to lower the prices, a small number of transactions between traders, and a small number of purchases downstream. Kirin, Mengzi, Huize and Tiefeng quoted prices for the Shanghai zinc May contract discount of 10-20 yuan / ton. The second trading period, downstream in the case of falling orders, the purchase volume is limited, the market shipment traders are more, the supply exceeds the demand obviously, the market transaction gradually tilts to the low discount price. Kirin, Mengzi, Huize and Tiefeng offer 20 yuan / ton to the May contract.
Tianjin: today, Shanghai zinc weakens, the spot market continues to raise 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 120 yuan / ton near, Chi Hong reports in the 04 contract to rise the water 100 yuan / ton near, the high price brand Zijin to the April contract reported 150 yuan / ton. Today, traders raised their discount quotations, as a result of the delivery of orders from smelters of various brands at the beginning of the month, resulting in a smaller volume of goods circulating to the spot market and a stronger willingness of traders to offer prices. After the price of zinc fell today, the willingness of downstream enterprises to inquire was more flat than yesterday and kept just in need of procurement. On the whole, the transaction today is flat compared with yesterday.
Zinc price: overnight zinc recorded a small negative line, close to Brin Road middle rail operation, below support 5 / 10 line, kdj index downward narrowing. There have been large overseas transfers in the past two days, with lme inventories surging to 97975 tonnes, up nearly 30 per cent in two days, or sparking pessimism, while domestic refinery production rose to 464200 tonnes in March, which is expected to record again in April. Short-term Zinc will remain weak, and British exchanges will take two trading days off because of the good Friday holiday and resume trading next Tuesday.
Today is expected: Shanghai zinc main force 2006 contract or run in 15100-15600 yuan / ton. Domestic zinc fell by 120 yuan per ton.