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[5.11 minutes of Zinc Internal Morning meeting] Zinc prices rose for three days in a row and transactions downstream were weak.
May 11,2020 09:37CST
The content below was translated by Tencent automatically for reference.

Summary of Zinc Morning meeting in SMM on May 11

Spot fundamentals

Shanghai: with the high price of zinc and the approach of the weekend, smelters and traders are actively shipping goods, and the market quotation is slightly lower than that of yesterday. In the morning market, the domestic price of rising water has changed from about 110yuan / ton to about 90yuan / ton, while the quotations of brands such as Shuangyan Huize, which are directly connected downstream, have been lowered synchronously, from about 130yuan / ton to about 100RMB / ton, while the circulation of imports to Belgium, Spain and SMC have all increased. The rising water is about 60-90 yuan / ton, and there are not many transactions, because the disk price is high, the downstream purchase is more cautious, and the main trading contribution between traders in the first trading session is the main activity. Into the second trading session, trading between traders has come to an end, downstream continue to wait and see, market trading is flat, the overall transaction within the day is slightly less than yesterday.

Ningbo: zinc prices continue to strengthen, shippers are more willing to ship, but the actual transaction is relatively light. In the first period of the morning, the price quoted by the holder was slightly reduced yesterday. Huize, Kirin and other sources reported a rise of 140 yuan / ton on the May contract, while sources such as Tiefeng and Hualian reported a 130 yuan / ton increase on the May contract. However, due to the higher futures prices, the downstream pre-festival inventory is abundant, the buying mood is not good, only just need to give priority to. Overall, today's market transaction atmosphere is basically flat compared with yesterday, the transaction situation is still poor.


Guangdong: in the first trading period, futures prices fluctuate, downstream high prices have a poor willingness to purchase, holders meet high shipping enthusiasm to enhance, the net price down 10 yuan transaction is OK, but most of the transactions between traders. Individual brands offer lower prices and put pressure on rising water. Kirin, Mengzi, Huize and Tiefeng quoted 30-50 yuan / ton for Shanghai zinc June contract and 10-20 yuan / ton for flying dragon. In the second trading period, the price is still on the strong side, downstream procurement has not improved, traders press the price to receive, but the spot price on the futures contract discount, the range of price adjustment is limited, overall, the market as a whole.


Tianjin: today, Shanghai zinc continues to rise, the spot market downgrades the discount price, and the price is more uniform. The ordinary brand Bailingbao is quoted for the 05 contract with a rising water price of 120 million yuan / ton, the Hong Kong newspaper is quoted for the 05 contract with a rising water price of 150 yuan / ton, Chi Hong is quoted for the 05 contract with a rising water price of 110 yuan / ton, the fourth Ring Road quoted a water premium of 100 yuan / ton for the 05 contract, and the high-priced brand Zijin for the May contract is quoted around 250Muth220 yuan / ton. Zinc prices continued to rise today, traders initially maintained a discount quotation for shipment, but due to poor transactions, superimposed smelters shipped at a low price, and then lowered the discount quotation again, the downstream transaction slightly improved; downstream, zinc prices continue to rise today, the overall willingness to pick up is poor. On the whole, deals have been done today.


Today's prediction of zinc prices: last Friday, Lun Zinc closed. Overseas Britain announced plans to contact the blockade measures, Japan will make a judgment around the 14th according to the epidemic situation, the market is expected to gradually resume demand. Last Friday, Shanghai zinc received a small negative line, running on Brin Road on the upper track, the lower 5-day line to provide support. The market expects that zinc ore imports will fall from May to June, resulting in a shortage of domestic zinc mines, but it is necessary to guard against high prices, domestic mining enterprises to increase shipments.


Today is expected: Lun zinc price is expected to operate in the 1990-2040 US dollars / ton range, Shanghai zinc main force 2007 contract or run in 16600-17100 yuan / ton. Domestic zinc rose 30 yuan per ton.


price forecast

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