SMM4 22 early meeting of zinc: overnight WTI6 month crude oil plunge zinc price correction to boost downstream consumption
Zinc Morning meeting: macro: a total of more than 2.52 million new crown cases have been confirmed worldwide, and the number of cases around the world has tended to flatten or decline; the June WTI futures contract in the crude oil market triggered three fuses on Tuesday, plunging 43% to close below $12 a barrel; As a result of the severe oversupply caused by the new crown prevention and control measures and the collapse of oil prices caused by a shortage of global oil storage space, the world's largest oil traders predict that June WTI futures may also fall negative. OPEC+ held an emergency conference call with the energy minister on Tuesday to discuss the collapse in oil prices. Although the Director of the International Energy Agency urged a faster and more substantial cut in production, the post-meeting statement showed that OPEC+ had not reached agreement on any new measures; OPEC is likely to meet on May 10 to discuss further production cuts. The U.S. Senate on Tuesday approved a $484 billion stimulus package, including additional funding for small business loan support programs and funding for hospitals and virus testing, with the House of Representatives voting as soon as Thursday. [Lido] China has decided to cut the regulatory requirements for the provision coverage of small and medium-sized banks by 20 percentage points in order to release more credit to support small and micro enterprises. In addition, the weight of inclusive finance in the comprehensive performance evaluation index of branches of banking financial institutions will be raised to more than 10%. China's central bank has cut its excess savings rate for the first time in more than 11 years, widening its interest rate corridor to the largest since data were recorded. The analysis points out that the standing lending facility (SLF), which is the upper limit of the interest rate corridor, is expected to follow suit. [Lido]
Fundamentals: yesterday's spot review: traders actively shipped downstream transactions warmed up in Shanghai: in the first period of the morning, as prices fell, downstream began to inquire, the market was active, while the trade market was still dominated by long orders, spot rising water continued to rise, the market mainstream transactions concentrated in the SMM net average price to rise 10 yuan / ton, with the mainstream quotation of 2005 contracts up 130% 140 yuan / ton; Enter the second period, traders continue to raise the water shipment, the mainstream of the holder reported to the 2005 contract up to 150 yuan / ton; as zinc prices strengthened a few days ago, most of the downstream wait-and-see, procurement intention is general, today as prices fall, downstream enterprises increase procurement efforts, today the overall transaction is more active.
Ningbo: today, the supply of goods in Ningbo market has tightened again, and there is almost no circulation of western mines in the market. In the morning, the first period of the market fell, and the offer from the holder was relatively strong. Tiefeng and Huize quoted prices around 170 yuan / ton for the May contract. Kirin and Hualian News delivered 210 yuan / ton for the May contract. The freight deduction is also basically 170 yuan / ton for the May contract. Today, the market quotation is more unified, the purchase intention of the downstream is better in the morning, although the order continues to be weak, but because the stock of raw materials in the early stage has almost been consumed, the willingness to buy in the lower reaches has improved. On the whole, today's transactions are mainly downstream low-price replenishment, and the transaction situation is better than yesterday.
Guangdong: in the first trading period, the price fluctuated downward, the holder offered the goods, the quotation was mostly flat or floating 10 yuan, the futures quotation was due to the expansion of the price difference between the futures month and the next month, the market quotation turned to rising water for 06 contract, Kirin, Mengzi, Huize, Tiefeng quoted for Shanghai zinc June contract rose 20-30 / ton. The second trading period, the downstream bargain into the market replenishment, leading to the transaction, the holder is still high prices for shipment, traders inquiry is more active. Kirin, Mengzi, Huize and Tiefeng quoted 30-40 yuan per ton for the June contract.
Tianjin: zinc fell a lot in Shanghai today. In the spot market, the discount quotation was upgraded and the quotation was divided. The ordinary brand lark reported a rise of 230 yuan / ton on the 05 contract, and 320 yuan / ton on the 05 contract. Chi Hong reported 250 yuan / ton on the 05 contract, and Zijin, a high-priced brand, reported 350 yuan / ton on the May contract. Today, zinc prices broke down, traders raised discount water delivery, however, due to the downstream for short-term prices to maintain bearish sentiment, the willingness to receive goods is not good, before the close of early trading traders cut discount quotation, each variety has 20-30 yuan / ton downgrade; downstream, after today's price plunge, purchasing willingness has not seen a significant improvement, still maintain the need to purchase, among them Zijin transaction is better. On the whole, the transaction today is flat compared with yesterday.
Zinc price: overnight zinc recorded a long shadow line negative line, the lower Brin Road middle rail to provide support, the upper 40 days line into suppression. Overnight lme inventories fell 200 tonnes, or 0.20 per cent, to 97850 tonnes, while LME inventories remained high. Overseas crude oil plunge again triggered panic in commodity markets, non-ferrous metal plate intraday decline has also expanded, superimposed under the impact of the overseas epidemic, national consumption has not yet recovered, it is expected that short-term Lun zinc weak operation. On the domestic side, driven by short-term restorative consumption, social libraries are still expected to remain, and there is little possibility of a deep fall in Shanghai and zinc in the short term, or will oscillate under 60 antennas.
Today is expected: Lun zinc price is expected to operate in the range of US $1880,930 / ton, Shanghai zinc main force 2006 contract or run in the vicinity of 15500-16000 yuan / ton. Domestic zinc fell 60 yuan per ton.