Minutes of Zinc Morning meeting in SMM on May 20

Spot fundamentals

Shanghai: Shanghai Zinc 2006 contract shot up and fell back, the first trading session of the morning market closed at 16875 yuan / ton, the trading market was active, and the mainstream market transactions were concentrated on the average price of SMM net. In the morning, the market quotation rose 155 yuan / ton to 2006 contract, entering the second period, the market quotation was relatively stable, and the mainstream of the holder reported a rise of 160 yuan / ton to 2006 contract. Today, the mainstream quotations of imported zinc in the market are mainly SMC, Spain, Belgium, Peru and Harbin, and the trading among traders is still good, but the consumption in East China is poor today, and the downstream is mainly wait-and-see, and the willingness to purchase at a high price is low.

Ningbo: in the first session of the morning, the holder of the Ningbo market continued to quote yesterday's quotation, the West Mining News increased the water by 140 yuan / ton for the June contract, and the Yunxi newspaper rose around 150 yuan / ton for the June contract. Huize, Kirin and Tiefeng newspaper are around 160 yuan / ton for the June contract. But the market rose sharply, downstream enterprises are more bearish, the willingness to receive goods is not good, entering the second period of time, the trade market delivery is hopeless, the quotation has not changed, basically flat in the June contract rising water 140 won 150 yuan / ton. Generally speaking, the orders of downstream enterprises have not taken a turn for the better, the disk price is higher, and the willingness of downstream enterprises to receive goods is obviously worse than that of yesterday.

Guangdong: the first trading session, although futures prices are high, but the holder based on Guangdong inventory continues to decline, price sentiment is strong, quotations are still relatively high, traders meet low-price supply demand, downstream is facing high water, high prices overall wait-and-see, Kirin, Mengzi quotation for Shanghai zinc contract for July rose 60rel 70 yuan / ton, Feilong rose 40 yuan / ton. In the second trading session, in the absence of downstream buying support, market demand weakens, but the price of the holder is still relatively strong, and the market trading volume is limited. Kirin, Mengzi, Huize, Tiefeng quoted prices for the Shanghai zinc contract for July to rise 50 RMB70 / ton.

Tianjin: today, the price of Shanghai zinc is expanding, and the spot market maintains a rising discount price, which is more divergent. The ordinary brand Bering News quoted a rise of 200 yuan / ton for the 06 contract, and Hongyi quoted a rise of 240 yuan / ton for the 06 contract. Chi Hong quoted a rise of 210 yuan / ton for the 06 contract, Shuangyan newspaper quoted a premium of 200 yuan / ton for the 06 contract, and the high-priced brand Zijin quoted a rise of 270 yuan / ton for the June contract. Today, zinc prices rise to a high level, traders and smelters are more willing to raise prices, but only low-price brands have a better deal, while high-price brands have a light deal; downstream, the spot price in Tianjin has broken the Wanqi barrier, and the downstream is more willing to wait and see. The overall mood of receiving goods is not good. Overall, trading today is weaker than yesterday.

Today's forecast zinc price: overnight Lun Zinc recorded a long shadow line cross Yang line, close to Brin Road on the track to run, the lower 5 / 10 line to provide support. 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, that the short-term operation of Lun Zinc will continue to be strong, and that Shanghai Zinc will receive a small positive line overnight and provide support on the 5 / 10 line below. Above or continue to test the Bollinger Road on the track. With the approaching of the two sessions, the recent large-scale western development plan and new transportation projects are superimposed, and consumption is expected to improve.

Today's forecast: the price of lun zinc is expected to operate in the range of US $2,050 per ton in 2000. It is expected that the contract price of Shanghai Zinc 2007 will run within the range of 16,500 Mel 17000 yuan / ton, and domestic zinc is expected to drop 20 yuan / ton.