SMM4 21 Zinc Morning meeting: overnight WTI crude Oil plunged to negative value China's April LPR quotation "double drop"
Zinc Morning meeting: macroscopically, so far, nearly 2.5 million cases of new crown pneumonia have been confirmed in the world. [bearish pneumonia] the market sell-off has been exacerbated by the depletion of oil storage space by energy companies, and crude oil futures in New York fell into negative value for the first time in the history of crude oil futures. Oil stocks and the currencies of oil exporting countries such as the Canadian dollar fell sharply; The collapse in oil prices came as the US bond market unleashed deflationary risk signals, with the US 10-year break-even rate, which measures average annual inflation over the next decade, falling below 1 per cent for the first time in more than two weeks. Russia's energy ministry has asked domestic oil producers to cut production by about 20 per cent from average daily production in February, enabling the Russian government to deliver on its commitments in a global agreement. [Lido] the British Prime Minister resisted the pressure to relax the blockade prematurely, fearing a second wave of epidemic peak, which will prolong the risks facing the British economy. The German Chancellor also said that Germany should not relax the blockade measures too quickly. China's LPR offer in April was 3.85% for one year, up from 4.05% last time. The number of varieties with more than 5 years was 4.65%, and the last time was 4.75%. [Li Duoyi] fundamentals: yesterday spot review: traders actively shipping downstream transactions weakened Shanghai: smelter normal shipment, morning market traders shipment more actively, the market reported a rise of about 110 yuan / ton, basically unchanged from last Friday, and Shuangyan due to tight circulation quotation rose to about 140 yuan / ton. Entering the second trading period, trading between traders remained active, and the market transaction price was raised to 115-120 yuan / ton, while the downstream fear of waiting for heights and buying enthusiasm was not high. Shuangyan quotation was lowered to 130 yuan / ton, and the main trading volume within the trading day was contributed by traders. Ningbo: the circulation of goods in Ningbo market is tight today, and traders are more willing to bid. In the first period of the morning, some traders tried to quote, Xikuang and Tiefeng quoted about 150 yuan / ton to the May contract, Huize and Tiefeng reported around 170 yuan / ton to the May contract, and a small number of Hualian reported near 140 yuan / ton to the May contract. On the whole, today's Ningbo market is relatively strong, the downstream willingness to receive goods is poor, the market as a whole is in a state of no market. Trading in the market was basically flat compared with last Friday.
Guangdong: in the first trading period, when the price is relatively low, the mood of the holder is relatively strong, and the foreign quotation is higher, but most of the traders find and paste the source of water goods. In the later stage, as the price rebounds, the market quotation is loosened and the overall transaction increases. However, most of them are mainly traded by traders. Kirin, Mengzi, Huize and Tiefeng quote 10 yuan to 10 yuan / ton on the Shanghai zinc June contract. In the second trading session, as prices continue to rise, smelters are more willing to ship, while downstream are afraid of high mining. In the case of insufficient demand, the holder continues to adjust the price and ship, and the spot discount is larger than that of the first period as a whole. Kirin, Mengzi, Huize and Tiefeng offer 10-20 yuan per ton for the June contract.
Tianjin: high shock of zinc in Shanghai today. The spot market maintains the discount quotation, the quotation is divided, the ordinary brand lark newspaper in the 05 contract bid up 230 yuan / ton, the red paper reported in the 05 contract rose 240 yuan / ton, Chi Hong reported in the 05 contract rose 220 yuan / ton, the high-priced brand Zijin reported 300 yuan / ton to the May contract. Today, zinc prices fluctuate, traders maintain rising water shipment, the market heard that there is a low price dump situation, as a result of May lark will enter maintenance, less recent shipments, resulting in the market lark brand zinc spindle volume is less, red Ye also has a maintenance plan, has not yet been finally decided; downstream, the price rose to the top of ten thousand, the overall willingness to accept the goods is significantly weaker. Maintain the need for procurement. Overall, the deal was flat today compared with last Friday.
Zinc price: overnight zinc recorded a long shadow line, the lower 5 / 40 day line to provide support, the upper resistance Brin Road on the track. Overnight lme inventories fell 250 tonnes, or 0.25 per cent, to 98050 tonnes, with LME inventories still high; overseas carmakers are returning to production, but are expected to operate or maintain their positions in the face of a downturn in the global economy and collapsing demand; short-term space above Zinc is expected to be limited. On the domestic side, the government has once again released a positive message that it will issue 1 trillion special local government debt in advance, or boost the market for a sustained period, but still need to pay attention to its substantive drive for terminal infrastructure.
Today is expected: Lun zinc price is expected to operate in the range of US $1910-1960 / ton, Shanghai zinc main force 2006 contract or run in the vicinity of 15700-16200 yuan / ton. Domestic zinc fell 250 yuan per ton.