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[5.8 minutes of Zinc Internal Morning meeting] overseas countries restart their economies to restore confidence in market demand
May 8,2020 09:37CST
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The content below was translated by Tencent automatically for reference.

Summary of the morning meeting of zinc in SMM on May 8th

Spot fundamentals

Shanghai: Shanghai Zinc 2005 contract fluctuates, closing at 16685 yuan / ton in the first trading session of the morning market. With the rise of zinc prices, trading in the trade market remains active. In the first time of the morning, the mainstream transaction in the market is concentrated in the discount of 5 yuan / ton to the average price of SMM net. In the morning market, the price of 2005 contract rose by 100 yuan / ton, and the mood of receiving goods at low prices was higher. Entering the second period, the market quotation is relatively stable, the holder mainstream reported to the 2005 contract up to 110 yuan / ton, but the low rise water market is willing to accept the goods; today the market import quotation increases, as the price comparison repairs, the import zinc inflow increases, the market mainstream is SMC, Spain mainly, today the price is on the strong side, the downstream except just needs to purchase, mostly by the wait and see, the actual transaction is poor.

Ningbo: the market is higher, traders are more willing to ship, and the rising water is slightly lower than yesterday. In the first time of the morning, the supply of Tiefeng, Huize and Hualian was reported near 140 yuan / ton, while Kirin reported that the water rose 130-140 yuan / ton on the May contract. Zinc prices have strengthened, but alloy enterprises have not recovered from the sharp drop in foreign trade orders, some enterprises have a poor willingness to buy, a small number of enterprises just need to buy, contribution must be done. Overall, today's market transaction atmosphere is basically flat compared with yesterday, the transaction situation is still poor.

 

Guangdong: the first trading period, futures high shock, the initial market is still high price shipment, but downstream on the high water and zinc price acceptance is poor, traders also low price acceptance, part of the holder began to adjust the price delivery, part of the supply network price down 10 yuan transaction, Kirin, Mengzi, Huize, Tiefeng quotation of Shanghai zinc June contract rose 3060 yuan / ton. In the second trading session, futures prices changed little, downstream procurement was still limited, holders' willingness to ship at high prices increased, spot prices continued to fall, and market transactions improved slightly, but transactions between traders were still dominant. Kirin, Mengzi, Huize and Tiefeng quoted 20-40 yuan per ton for the June contract.

 

Tianjin: today, Shanghai zinc continued to move higher, the spot market downgraded the discount quotation, the quotation is more unified, the ordinary brand lark newspaper in the 05 contract rose 170 yuan / ton, the red newspaper reported in the 05 contract rose 200 yuan / ton, Chi Hong reported in the 05 contract rose 120 yuan / ton, the fourth ring newspaper in the 05 contract rose 120 yuan / ton, the high price brand Zijin reported 280 yuan / ton to the May contract. Today, zinc prices continue to rise, traders initially offered shipments, but refineries shipments increased, superimposed transactions are poor, the spot market rising water down faster; downstream, before the festival has been a round of storage, today's futures prices rose, the overall willingness to buy goods is poor. On the whole, the deal was light today.

 

Today's prediction of zinc prices: overnight zinc recorded a small cross positive line, breaking through 2000 US dollars / ton integer level and Brin Road on track resistance, the lower 60-day line to provide support. Overnight lme inventories fell 250 tonnes, or 0.25 per cent, to 100175 tonnes, while LME inventories fell by a limited margin and remained high. Europe and the United States gradually resume work and resume production, restart the economy in stages, stack up the good release of crude oil, and give market demand confidence to restore. Overnight, Shanghai zinc received the Xiaoyang line, which runs close to the upper track of Brin Road, and provides support on the 5th line below. In May, infrastructure is expected to continue to perform well and will continue to drive zinc consumption. In the future, we need to pay attention to whether the shortage of mines will be transmitted to the smelting end.

 

Today is expected: Lun zinc price is expected to operate in the 1980-2030 US dollars / ton range, Shanghai zinc main force 2007 contract or run in the vicinity of 16500-17000 yuan / ton. Domestic zinc rose 150 yuan per ton.

 

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