Summary of Zinc Morning meeting in SMM on May 21

Spot fundamentals

Shanghai: zinc prices are relatively high, smelters ship normally, and early market traders ship mainly. The spot price is basically the same as yesterday, about 160yuan / ton, but the average price of SMM contributes mainly to the trading volume. Entering the second trading session, market trading turned weak, mainly shipments, domestic quotations were lowered to about 150 RMB155 / ton, while trading on downstream brands was light, high zinc prices inhibited downstream buying and inquiry enthusiasm, just-demand procurement-based, imports and Shuangyan quotations were flat yesterday. The overall turnover during the day was mediocre, slightly weaker than yesterday.

Ningbo: in the first session of the morning, the Shanghai market quotation was slightly lower than that of yesterday, and the market fluctuation was smaller. Ningbo market holders quoted goods slightly, and the West Mining News rose around 130 yuan / ton for the June contract. Yunxi News rose around 140 yuan / ton for the June contract, and Huize, Kirin and Tiefeng News rose around 150 yuan / ton for the June contract. Zinc period is strong and volatile, downstream enterprises are subject to poor orders, still wait and see, the overall willingness to buy is poor, compared with yesterday is basically flat, the market turnover is light.

Guangdong: in the first trading session, the inventory dropped slightly, and the price quoted by the holder remained firm, and some of the price rose to 10 yuan on the net, but on the whole, the transaction price was mostly flat, and the transaction between the traders in the market was good. The downstream just needed to purchase mainly, and the procurement was limited. Kirin and Mongolia quoted a price for the July contract of zinc in Shanghai, which rose 60 million yuan / ton, and Tiefeng water rose 5070 yuan / ton. The second trading session, individual holders slightly adjust the price of shipments, taken together, the overall market quotation has not changed much, the transaction is also relatively stable. Kirin and Mongolia quoted a price for the July contract of zinc in Shanghai for 60 won 70 yuan / ton, while Tiefeng water rose 60 won 70 yuan / ton.

Tianjin: today, Shanghai zinc high concussion, the spot market to maintain a rising discount price, the price is more divergent, the ordinary brand lark newspaper in the 06 contract quoted water 220 yuan / ton, Hongli quoted on the 06 contract 240luth230 yuan / ton, Chi Hong quoted on the 06 contract quoted water 210mura190 yuan / ton, import YP quoted a premium of 130yuan / ton on the 06 contract, high-price brand Zijin quoted a rise of 260yuan / ton on the June contract. Today's high zinc prices shock, traders and smelters quite the same price mood, but due to the current Tianjin market low-cost brands such as: imported zinc, Mengzi, fourth Ring Road and so on, downstream enterprises prefer low-price brands, resulting in poor transaction of high-price mainstream brands, before the close of trading at noon, the mainstream brands all have a price adjustment of about 10rel 20 yuan / ton; downstream, spot prices in Tianjin today remain high, and downstream enterprises tend to take low-priced brands. On the whole, today's turnover is still light.

Today's forecast zinc price: overnight Lun Zinc recorded a long shadow line positive line, the lower 5 / 10 line to provide support, the upper Bollinger Road on the track to form resistance. Overnight lme inventory increased by 8900 tons to 107275 tons, or 9.05% to more than 100000. Driven by the general rise of non-ferrous metals overnight, Lun Zinc also showed a strong performance, breaking through recent highs, but the sharp increase in lme inventory may indicate that the current market demand recovery is not as expected, short-term Lun Zinc will continue to operate strongly, but the upper space is limited. Overnight Shanghai zinc received a long shadow line Xiaoyin line, the lower 5 / 10 line to provide support, above or continue to test Brin Road on the track. Near the two sessions, boosted by the infrastructure investment plan, the market expects demand to continue to improve, but after the price rise, the willingness of downstream enterprises to receive goods is obviously weaker, which may lead to a slowdown in the removal of social treasury.

Today's forecast: the price of lun zinc is expected to run in the range of US $2060 / ton in 2010. It is expected that the contract price of Shanghai Zinc 2007 will run in the range of 16,500Muth17000 yuan / ton. The price of domestic zinc dropped by 70 yuan per ton.