Summary of Zinc Morning meeting in SMM on May 14

Spot fundamentals

Shanghai: the market import zinc stock is large, the trade market supply is sufficient, this morning the market mainstream transaction concentrates in to the SMM net average price level, follows the market quotation in the morning market to the 2006 contract rises 130 million 140 yuan / ton, the high price has the transaction, after approaching the first time close, the market spot water goes lower, the sell goods increases, follows the market mainstream offer to the 2006 contract rises 120 yuan / ton; Entering the second period, the market quotation is relatively stable, the holder mainstream reported to the 2006 contract up 120 yuan 130 yuan / ton; today's market import zinc quotation is still more, the market mainstream to SMC, Spain, Peru, Harbin zinc-based, traders trading in general, mostly shipment-based, downstream prices fell today, bargain procurement, but the purchase volume is still more cautious, mostly worried about the further decline in zinc prices.

Ningbo: zinc price correction, refineries and holders slightly cherish the sale, the market supply circulation is slightly scarce. In the first part of the morning, the holder turned to an offer for the June contract. The Western Mining News raised the water by 130 yuan / ton on the June contract, Hualianbao by 140 yuan / ton on the June contract, Tiefeng by 150 yuan / ton on the June contract, Huize News by 160 yuan / ton on the June contract, and Kirin Morning News by 170 yuan / ton on the June contract. In the morning, the transaction of low-priced brands has improved, Kirin Huize and other quotations have been gradually reduced to 140-150 yuan / ton for the June contract. Overall, due to the zinc price correction, downstream enterprises are willing to buy when they fall, and the trading atmosphere in today's market has warmed up compared with yesterday.

Guangdong: in a trading period, futures prices opened low and walked low, holders offered higher prices, the overall market quotation was higher than yesterday, downstream bargain inquiries increased, market transactions were OK, Kirin, Mengzi, Tiefeng quotation for Shanghai zinc June contract rose 1530 yuan / ton. The second trading session, prices rebounded, downstream demand weakened, traders to maintain the value of normal shipments, part of the realization of active price adjustment shipment, spot rising water slightly lower than the first trading session, overall, today's downstream demand is better than yesterday. Kirin, Mengzi, Huize and Tiefeng quoted prices for the June contract to raise 10-20 yuan / ton to Pingshui.

Tianjin: today, zinc in Shanghai has dropped sharply, and the spot market has maintained a discount quotation. The quotation is more uniform. The ordinary brand lark newspaper reported a rise of 150 yuan / ton on the 06 contract, and the Hongqi newspaper reported 2000 yuan / ton on the 06 contract. The Hongbao reported 150 yuan / ton on the 06 contract. The fourth Ring News reported 140 yuan / ton on the 06 contract, and 160 yuan / ton on the imported KZ contract. High-priced brand Zijin on the June contract rose 230 yuan / ton near. Zinc prices fell sharply today, traders quoted basically the same as yesterday, Tianjin market rumors on Friday that a large number of goods were delivered, resulting in traders' willingness to offer prices weakened; downstream, Tianjin spot prices fell sharply today, downstream receiving slightly better than yesterday, but the overall transaction is still general. On the whole, the deal was mediocre today.

Today's prediction of zinc prices: overnight zinc recorded a major negative line, the lower 10 / 60 day line to provide support, the upper Brin Road on the track to form resistance. Overnight lme inventories fell 375t, or 0.38 per cent, to 99100 tonnes. LME inventories fell in a row, focusing on whether the recovery of overseas demand could lead to the continuation of inventory destocking. Affected by the epidemic situation, overseas pre-production shutdown mines have not yet centralized resumption of production, will provide support for Lun Zinc. Overnight Shanghai zinc received a big negative line, or continue to test the lower 15 line support, the top 10 line resistance. In mid-May, imports of mines may gradually decline, which will force import processing fees to be further reduced, and refinery profits will be significantly narrowed, or their production enthusiasm will be affected, thus providing support for zinc prices.

Today is expected: Lun zinc price is expected to run in the range of US $1950-2000 / ton, Shanghai zinc main force 2007 contract or run in the vicinity of 16300-16800 yuan / ton. The price of domestic zinc dropped by 60 yuan per ton.