[selected by SMM Weekly] the surge in LME zinc stocks reflects light external demand and mixed differentiation in the lower reaches of the country.

Published: Apr 11, 2020 08:32

"SMM Zinc Industry chain Weekly report", the weekly report SMM will select one of the hot topics, prices, market or major changes in the industry chain information published for your reference.

The following are excerpts from the weekly report on the zinc industry chain:

Zinc market forecast next week: on the Shanghai zinc point of view, this week's overseas epidemic fermentation situation is still grim, domestic consumption in the recovery process has also encountered a dismal external demand brought about by a heavy setback, the overall consumption recovery is not as expected. On the supply side, the mining and metallurgical negotiations are still continuing, the transaction prices of processing fees around the country have been lowered again, and the tight raw materials are still the main problem for refineries, but at present, the profit of processing fees can alleviate the problem of raw materials, and the possibility of concentrated production reduction in smelters in the short term is not great. In addition, fewer refineries are still being overhauled next week, with only western mining repairs affecting a small amount of supply, but the impact is relatively limited, and overall supply-side pressure is relatively strong. On the consumer side, the order of galvanized structural parts is better in the downstream enterprises, and the orders of large galvanized pipe factories and some iron towers and railways are obviously warming up, and some of the orders are scheduled to end in the first half of the year. The die-casting zinc alloy and zinc oxide plate is not optimistic, the bleak impact of external demand is significant, a large number of factory orders for alloys have been sharply reduced, zinc oxide has been frustrated by tire exports, resulting in a significant decline in consumption, overall zinc fundamental support is temporarily weak next week. Next week, Lun Zinc is expected to run at US $1860,1940 / ton; Shanghai Zinc main force 2006 contract is expected to run at 15200-15800 yuan / ton, and the spot is expected to rise to 50-80 yuan / ton in May.

Import profit and loss: internal strength and external weakness will be maintained, the short-term import window is expected to be difficult to open. As of Thursday, the average Shanghai-London ratio this week was 8.26, up slightly from 8.25 last week, and the weekly average import loss narrowed by 80 yuan / ton to about 455 yuan / ton. This week the spot market has a small amount of Spanish circulation, compared with domestic discount of only 10 yuan / ton or so. In the short term, the internal and external strength will remain strong and weak and there is still room for deepening, but the long-term fundamentals have not fundamentally changed, the high selling pressure of the market is relatively large, it is expected that the import window will be difficult to open in the short term, and the foreign trade market is expected to remain desolate.

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Current issue of "SMM Zinc Industry chain Weekly report" catalogue

Cover story

Main points of this issue's weekly report: processing fee import profit and loss inventory

Hot spot in Zinc Industry: Guangdong Zinc Ingot Deposit rate slows down in April

Zinc concentrate market: accelerated reduction of import processing fees to US $190 / dry ton

Refinery dynamics

Import zinc market: strong inside and weak outside will maintain short-term import window is expected to be difficult to open

Zinc market forecast next week: LME inventory surge reflects light external demand and mixed differentiation in the lower reaches of China

Review of Zinc Market: improving Market sentiment Zinc Price continues to rebound

Zinc downstream market

Galvanized: galvanized sheet consumption is not as good as structural parts this week tower consumption is better

Die casting Zinc Alloy: greatly affected by the order of Terminal external demand sliding conduction Zinc Alloy Factory

Zinc oxide: lack of new growth point of order zinc oxide start basically stable

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[China Zinc Industry chain High-end report] SMM exclusive monthly investigation of Zinc Industry chain report, which covers the operating rate, supply and demand from zinc concentrate to zinc primary consumption. And publish the exclusive monthly zinc concentrate, refining zinc balance, continue to track the industry entity enterprises, update data. And through the supply and demand situation and data model to make a simple prediction of the future trend of zinc. "View details

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[selected by SMM Weekly] the surge in LME zinc stocks reflects light external demand and mixed differentiation in the lower reaches of the country. - Shanghai Metals Market (SMM)