Minutes of the morning meeting of zinc in SMM on May 22nd

Spot fundamentals

Shanghai: Shanghai Zinc 2006 contract shock operation, the first trading session of the morning market closed at 16740 yuan / ton, the trading market turned weak today, the market is dominated by shipments, and the mainstream market transactions are concentrated in the average price discount of 5 yuan / ton to flat water on the SMM net. With the quotation, the morning market price of 2006 contract rose 155 yuan 160 yuan / ton, and then the market trading became light, and the holder lowered the rising water quotation to 2006 yuan / ton contract water 145 million 150 yuan / ton. Entering the second period of time, the market quotation fell further, and the mainstream of the consignors reported a rise of 140yuan / ton for the 2006 contract. Today, the market trading became weaker, the consignors were mainly shipments, the spot rising water fell, and the purchasing mood downstream today is still general. It is not based on the need to buy goods. Overall, trading in the Shanghai area has weakened today.

Ningbo: the morning market is adjusted downwards, and the shippers are actively shipping, slightly lowering the rising water, the West Mining News in the morning rose 120 yuan / ton for the June contract, and Yunxi News raised 120 yuan / ton for the June contract. Tiefeng, Huize and Qilin reported a water increase of 150 yuan / ton for the June contract, which was basically unchanged compared with yesterday. Today, zinc prices are slightly reduced, downstream enterprises are willing to receive goods slightly better, superimposed Xikuang, Yunxi and other sources of quotations are slightly reduced, market transactions are concentrated in low-priced brands, other brands are still poor. On the whole, the trading atmosphere in the market today is warmer than that of yesterday.

Guangdong: the first trading session, the initial market is still trying to make a price shipment, individual traders quoted higher prices, rising water prices, but poor market feedback, coupled with the warehouse receipt outflow of additional negotiable goods, later market quotations loosened, Kirin, Huize, Mengzi quoted water for the Shanghai zinc contract in July, the water rose 70 RMB80 / ton, Tiefeng Shengshui 6070 yuan / ton. The second trading session, downstream purchases more yesterday, today slightly wait-and-see, traders in the face of rising water is also limited, market transactions are weak, individual holders slightly adjust the price of shipments, but the overall market quotation has not changed much. Kirin and Mongolia quoted a price for the July contract of zinc in Shanghai for 65 RMB80 / ton, and Tiefeng Shengshui 60 RMB70 / ton.

Tianjin: today, Shanghai zinc slightly pullback, the spot market at the beginning of the period to maintain a rising discount price, cut down the discount before noon, the price is more unified, the ordinary brand Bailing newspaper quoted a rise of 200 Mel 170 yuan / ton for the 06 contract, Hong quoted a premium of 190 yuan / ton for the 06 contract, and the high-priced brand Zijin quoted a rise of 250 Mel 220 yuan / ton for the June contract. Today, zinc prices fluctuated mainly, traders and smelters made goods at the beginning of the period, but the transaction was still light, and the traders took the initiative to lower the discount quotation before the close at noon; downstream, the spot price in Tianjin did not fall sharply today. Downstream enterprises tend to take low-cost brands, mainstream brands turnover is light. On the whole, today's transaction is still mediocre.

Today's forecast zinc price: overnight Lun zinc recorded a big negative line, below the test 20 line support, the top 10 line to form resistance, KDJ index line into a dead fork. Overnight lme inventories fell by 450t to 106825 tonnes, or 0.42 per cent of the decline in the inventory of the JLME, which is at a high level. Short-term attention to the resumption of work and production in overseas mines, if the tension at the end of the mine is transmitted to the shortage of raw materials in the refinery, it is expected to provide support to lun zinc. Overnight Shanghai zinc received a small overcast line, the lower 20-day line to provide support, the upper 5 / 10 line into resistance. After the two sessions are held, or due to the expected landing of the early bulls, superimposed by the recent slowdown in the removal of the social treasury, and the lack of momentum for the market to see more bulls, the bulls take the initiative to drive prices down, and in the short term, we need to pay attention to whether the two sessions will further release good news.

Today's forecast: the price of lun zinc is expected to operate in the range of US $1940 / ton in 1990. It is expected that the contract price of Shanghai Zinc 2007 will run in the range of 16,300muri 16800 yuan / ton. Domestic zinc fell by 300 yuan / ton.