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[summary of SMM Morning meeting] Zinc price fluctuates slightly downstream and slows down.
May 28,2020 09:40CST
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The content below was translated by Tencent automatically for reference.

Summary of Zinc Morning meeting in SMM on May 28th

 

Spot fundamentals

 

Shanghai: today's market trading is general, mainly for the end of this month's long order, the mainstream transaction of next month's ticket market is concentrated in the average price discount of 5 yuan / ton to flat water to SMM net, and the market quotation is 160yuan / ton for 2006 contracts in the morning. Entering the second period of time, the spot rising water in the market began to decline, and the mainstream of the holders reported a rise of 150yuan / ton for the 2006 contract, and there was a price of 140yuan / ton at a low price; the spot price operated in a narrow range, and trading between traders was general, but downstream, with the lower zinc price, it is still dominated by demand. (lidocaine)

 

Ningbo: the holder of the first session of the morning continued yesterday's quotation, Tiefeng newspaper was near 150 yuan / ton for the June contract, Huize and Kirin were reported near 150 yuan / ton for the June contract, Yunxi newspaper was near 130 yuan / ton for the June contract, and the West Mining newspaper was around 230 yuan / ton for the July contract, which converted to 120 yuan / ton for the current month. In the second period of time, some holders lowered the brand quotation around 10 yuan / ton. However, due to more purchases in the lower reaches of last Friday, the overdraft part of this week's demand. On the whole, there is no significant improvement in today's transaction compared with yesterday. (bullish)

 

Guangdong: in the first trading session, futures rose and fell back, and the market price was strong. The holder reported a difference of about 10 yuan between the current month and next month's ticket, and the downstream just needed a small amount of purchase, and the market transaction was limited. Kirin quoted a price for the July contract of zinc in Shanghai to rise 100 RMB110 / ton, and Tiefeng Shengshui 90100 RMB / ton. The second trading session, after the network price pricing, the holder is still relatively strong shipments, but traders in the face of rising water procurement demand in general, downstream procurement is also weak, the market transaction is poor. Kirin quotes the July contract for zinc in Shanghai to rise 110 yuan / ton, while Tiefeng liter water 100ml 110 yuan / ton. (bullish)

 

Tianjin: today's Shanghai Zinc low concussion, the spot market raised the discount price, the price is more divergent. The ordinary brand lark newspaper quoted a price of 270 yuan / ton for the 06 contract, Hongyi quoted a water price of 320 yuan / ton for the 06 contract, Chi Hong quoted a water price of 350 yuan / ton for the 06 contract, and the high-priced brand Zijin quoted a water price of 350 yuan / ton for the June contract, while KZ quoted a water price of 210 yuan / ton for the 06 contract. Kirin News quoted 270 yuan per ton for the 06 contract. Today, zinc prices are low and fluctuating, traders have a strong willingness to raise prices, and the discount has risen sharply, among which Chihong has a poor transaction due to its small market volume and high price sales; downstream, spot prices in Tianjin are stable today, and downstream enterprises' willingness to receive goods has not weakened, and some enterprises just need to replenish their inventory. On the whole, today's transaction is the same as that of yesterday. (lidocaine)

 

Today's forecast zinc price: driven by the decline of overseas crude oil overnight, Lun Zinc's overall performance is relatively weak, recording a bald head in the Yin line, the upper 5 / 10 line has a strong suppression force, and the 40 / 60 day line finds support. Overnight lme inventories fell by 125t to 106150 tonnes, or 0.12 per cent. In the short term, we should pay attention to whether the recovery of overseas demand can lead to the continuation of inventory removal and provide support to Lun Zinc. Overnight Shanghai zinc received a bald small sunny line, the lower 40-day line to provide support, the upper 5-day line to form resistance. In the future, we still need to pay attention to whether the speed and extent of destocking brought by consumption can support the price.

 

Today's forecast: the price of lun zinc is expected to operate in the range of US $1920 / ton. It is expected that the contract price of Shanghai Zinc 2007 will run in the range of 16000 murals per ton. Domestic zinc fell by 130 yuan / ton.

 

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