SMM, 6 May:
Overnight, WTI crude oil futures rose about 23 per cent above the $25 mark in June; Saudi oil exports in May could fall to about 6 million barrels a day, the lowest level in nearly a decade; Texas is determined not to cut crude oil production, but the number of US wells has fallen 50 per cent in the past two months; the expansion of crude oil gains will boost market confidence. The index of business activity, new orders and jobs in the United States fell to its lowest level since 1997; Trump said the United States must immediately start reopening its economic activities; the United States and the United Kingdom announced the formal launch of trade negotiations; Germany will propose an auto industry aid package in early June; short-term affected by the epidemic, demand in Europe and the United States is still at a low level, focusing on the future policies on consumption. Overnight, Lun Zinc opened at US $1901 / ton, and the center of gravity of Lun Zinc moved up to US $1920 / ton. It entered the European trading session. Affected by the pessimistic expectations of the overseas epidemic, under the influence of pessimistic expectations of the overseas epidemic, Lun Zinc fell rapidly, probing down US $1897.5 / ton, near night trading, driven by the sharp rise in crude oil. Under the overall entry of the bulls, Lun Zinc gave up its decline and finally closed up at US $1920.5 / ton, up US $19.50 / ton. Up 1.03%, trading volume fell to 4897 hands, position decreased by 716 hands to 221896 hands. Overnight zinc recorded a large positive line, running between the daily averages, the lower Brin Road middle track to provide strong support. Overnight lme inventories fell 175 tonnes, or 0.17 per cent, to 100675 tonnes, and LME inventories broke through the 100000 mark again. Europe and the United States gradually resume work and resume production, but the epidemic in the United States has not yet entered the inflection point, short-term overseas demand is limited, and the price of zinc is expected to operate in the range of US $1900-1950 / ton. On the domestic side, infrastructure construction in May may continue to drive domestic zinc consumption, and it is expected that zinc social inventory will maintain a high probability of entering the stock in the short term. It is expected that the contract price of Shanghai Zinc 2006 will run in the range of 16000-16500 yuan / ton. Domestic Shuangyan Zinc is expected to increase the May contract by 70-100 yuan / ton.
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