SMM4 March 24 Zinc Morning meeting: the United States passed the epidemic Prevention and Relief Act, spot market supplies transferred across the ground Zinc Morning meeting: macroscopic: the world's new crown pneumonia has accumulated more than 2.7 million confirmed cases; the US House of Representatives passed the US $484 billion epidemic Prevention and Relief Act, US Treasury Secretary Mnuchin considered providing loans to troubled oil companies, and the US Treasury Department tightened the next round of small business relief targets. [bearish] the Fed's balance sheet has expanded to a record $6.57 trillion, the Fed will temporarily lift restrictions on credit provided by Fed banks and seek to expand the range of lenders in wage protection liquidity instruments. Overnight US economic data: initial claims for unemployment benefits reached 4.43 million last week, rising to 26.5 million in five weeks, a shocking figure confirming that all the jobs added during the longest jobs boom in US history have been wiped out by the new crown epidemic, which has hit the economy hard. Americans are at their highest level of pessimism about the economic outlook in 11 years. New home sales fell the most since 2013 in March. The IHS Markit's composite purchasing managers' index for the US, UK and eurozone all fell to record lows in April, indicating a record contraction in corporate activity. EU summit failed to agree on an economic stimulus package. German Chancellor Angela Merkel said the scale of the anti-epidemic measures must be large. It is also said that ECB President Christine Lagarde warned that the outbreak could lead to a decline of as much as 15 per cent in GDP in the region; [bearish loans] China's 267.4 billion yuan targeted medium-term lending facility (TMLF) will expire today, and the people's Bank of China may continue to shrink the continuation, the price is expected to follow the MLF and reverse repo rate cuts. [bearish] fundamentals: yesterday's spot review: traders are actively shipping downstream turnover Shanghai: in the first period of the morning, the market trading is active, traders take the initiative to lower the rising water quotation, the market mainstream transaction is concentrated in the SMM net average price flat (current month ticket), the following quotation is more chaotic, the mainstream to the 2005 contract price up 180% 190 yuan / ton, but the transaction is light; In the second period, the holder continued to lower the price of rising water, the mainstream reported to the 2005 contract rose 160% 170 yuan / ton, but there are signs of receipt in the 2005 rising water market; Today, the market has ended one after another, downstream procurement today more wait-and-see, some downstream on-demand replenishment, trading is weaker than yesterday, traders market shipments and receipts coexist, taking into account the transfer of Guangdong supply to east China in the future, market rising water continues to rise pressure.
Ningbo: today, the circulation of goods in the Ningbo market is still tight. In the first period of the morning, the holder extended yesterday's offer. Hualian and Qilin reported a 240 yuan / ton increase in the May contract near the 250 yuan / ton increase in the May contract. Tiefeng reported a 230 yuan / ton increase in the May contract. The market was less willing to buy, and entered the second period. Some traders depressed the rising water report Kirin rose 180 yuan / ton on the May contract, the superposition disk fell, and some downstream transactions improved, but due to the small number of goods, the transaction volume was more limited. Overall, the recent rising water high, downstream willingness to buy frustrated, the overall transaction situation is basically the same as yesterday.
Guangdong: during the first trading period, recently, Guangdong warehouse zinc ingots were sent to Shanghai one after another, and the tradable inventory in the market was lower than that in the early stage. When the demand for monthly ticket resources increased, Kirin, Mengzi, Huize and Tiefeng quoted prices for the Shanghai zinc June contract by 70-80 / ton. In the second trading period, the spot rising water goes higher, the holder receives the goods source profit in the early stage is better, the active shipment, presses the market transaction price, in addition to the downstream replenishment demand is general, the later rising water weakens. Kirin, Mengzi, Huize and Tiefeng quoted 50-65 yuan / ton for the June contract.
Tianjin: today, Shanghai zinc rose higher and fell back, the spot market downgraded the discount quotation, the quotation is more unified, the ordinary brand lark newspaper in the 05 contract rose 260 yuan / ton, the red gold newspaper in the 05 contract rose 300 yuan / ton, Chi Hongbao rose 280 yuan / ton to the 05 contract, the high price brand Zijin reported 400 yuan / ton to the May contract, and the Zijin rose to 380 yuan / ton before noon. Zinc prices fell back today, the spot market rose and posted a small decline, only Zijin remained at a high price, today's shipment situation is the same as yesterday, of which Zijin shipment is better; downstream, today's buying is still not high, still maintain just need to buy goods. On the whole, the transaction today is flat compared with yesterday.
Zinc price: overnight zinc recorded a big negative line, break through the Brin Road middle track and run below each daily moving average. Overnight lme stocks rose 2475 tons, or 2.54%, to 100075 tons, while LME inventories rose sharply, breaking the 100000 mark. Overseas outbreaks are still repeated, consumption collapse, once again triggered lme centralized exchange, superimposed EU economic stimulus policy has not yet been passed, market sentiment is further weak, Lun Zinc will maintain a weak operation. On the domestic side, under the government fiscal stimulus, short-term infrastructure consumption will continue to improve, driving the overall zinc consumption, to the library rhythm, Shanghai zinc will remain strong.
Today is expected: Lun zinc price is expected to run in the range of US $1850,900-1900 / ton, Shanghai zinc main force 2006 contract or run in the vicinity of 15500-16000 yuan / ton. Domestic zinc fell 130 yuan per ton.