SMM, May 20:
Overnight, US API crude oil stocks fell by 4.8 million barrels last week; the strong trend of crude oil will give support to the low price of zinc. Trump said he was considering a travel ban on Latin America; Powell promised to use various tools to support the economy; Trump and Republican leaders focused economic recovery on lifting epidemic restrictions rather than stimulus measures; Nuchin plans to use all the funds of the direct loan program to fight the epidemic; the Congressional Budget Office expects GDP to fall by 38% in the second quarter; and the number of new housing starts in the United States fell by a record in April. Britain announces a 30 billion pound tax cut; Britain publishes a draft text of its future relationship with the European Union; the epidemic has a great impact on the economies of Europe and the United States, and it is necessary to guard against the Black Swan incident in the Minister of Transport: it is estimated that more than 800 billion yuan will be invested in new transportation projects to start construction in due course. Overnight, Lun Zinc opened at US $2027.5 / ton. At the beginning of the day, Lun Zinc opened at a high of US $2038 / t, but went further higher under insufficient power, returned to weakness, fluctuated and fell below the daily average line, and entered the European trading session. Lun Zinc's decline widened, fell 2001 US dollars / ton, entered the night market, was boosted by the economic stimulus plans in Europe and the United States, and mostly fell flat, but rose instead, recovered its intraday decline, and finally closed up at 2029 US dollars / ton. Increased by 10 US dollars per ton, or 0.5%, the trading volume decreased to 7264 lots, and the position decreased by 2313 to 215385 lots. Overnight Lun Zinc recorded a long shadow cross-yang line, running close to the upper track of Brin Road, and providing support on the 5 / 10-day line below. Overnight lme inventories fell by 250t to 98375 tonnes, a drop of 0.25%. The statements made by Trump and others overnight may indicate that further economic stimulus policies in the early stage will run aground, that we need to be wary of overseas black swan incidents in the future, and that Lun zinc will continue to operate strongly in the short term, and that the price of Lun zinc is expected to run in the range of US $2,050 / ton. Overnight, the main contract of Shanghai Zinc 2007 opened at 16775 yuan / ton. At the beginning of the session, Shanghai Zinc rose slightly, then fluctuated in a narrow range around the daily moving average, during which it reached a high of 16880 US dollars / tonne. In late trading, when some bulls left the market, Lun Zinc fell back to 16810 yuan / ton, up 60 yuan / ton, or 0.36%. The trading volume decreased to 48689, and the position increased by 804 to 117190. Overnight Shanghai zinc received a small positive line, the lower 5 / 10 line to provide support, above or continue to test Brin Road on the track. Near the two sessions, superimposing the recent western development plan and new transportation projects, consumption is expected to be good. The contract price of Shanghai Zinc 2007 is expected to operate within the range of 16500, 17000 yuan / ton. It is expected that domestic Shuangyan zinc will increase the water supply by 140 million yuan / ton in June.
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