SMM, May 29th:
Overnight, US EIA stocks surged unexpectedly by nearly 8 million barrels last week. In the United States, the GDP was revised down to-5% in the first quarter; the number of people applying for unemployment benefits in the United States fell for the first time since the epidemic; Trump signed an executive order against social media companies; the US House of Representatives voted to relax restrictions on the small business relief loan program; Saudi Arabia plans to extend the production reduction to December, but Russia has not yet agreed; the British prime minister announced the implementation of the next phase of unblocking measures in June. Banks plan to cut their gold holdings by up to 75 per cent. Trump plans to announce action against China on Friday; Li Keqiang said he did not want the Sino-US economy to be decoupled. Sino-US relations are tense and there are still risks in Sino-US trade.
Overnight, Lun Zinc opened at 1934.5 US dollars / ton, Pancu Zinc fluctuated in a narrow range near the daily moving average, during which it broke through the 40-day moving average and felt a high of 1940.5 US dollars / ton. when the upward pressure entered the European trading moment, Lun Zinc picked up the downward trend and accelerated its decline. After exploring a low of 1903.5 US dollars / ton, the upward center of gravity of Lunzn Zinc concussion moved to a narrow range of 1920 US dollars / ton, driven by bullish positions at the end of the day. The center of gravity of Lun Zinc moved up by US $1943 / ton, and finally closed up at US $1940 / ton, up US $4.50 / ton, or 0.23%. The trading volume decreased to 7074 lots, and the position increased to 208000 lots. Driven by the upward movement of overseas crude oil overnight, Lun Zinc closed a small positive line, and the upper 5th line was suppressed. Overnight lme inventory decreased by 2900 tons to 103250 tons, a decrease of 2.73%. Short-term attention to whether the recovery of overseas demand can lead to the continuation of inventory removal, to provide support for Lun zinc, coupled with short-term tension in Sino-US relations, Lun zinc is expected to be weak and volatile, and the price of Lun zinc is expected to operate in the range of US $1910 per ton.
Overnight, the main contract of Shanghai Zinc 2007 opened at 16170 yuan / ton. at the beginning of the session, Shanghai zinc fell slightly by 16125 yuan / ton, and the bulls further pulled up, fluctuating in a narrow range near the daily average line, empty into many lower levels. Shanghai zinc picked up its decline below the daily average line, and was driven by Lun zinc at the end of the day. The center of gravity of Shanghai zinc moved up to a narrow range of 16230 yuan / ton, and finally closed up at 16230 yuan / ton, up 105yuan / ton, up 0.65%, and the trading volume decreased to 50046 hands. Position reduced by 432 hands to 84000 hands. Driven by the overseas stock index upward, overnight Shanghai zinc closed a small positive line, the upper 10 / 20 line to form resistance, the lower 40-day line to provide support, the future focus on the breakthrough above the 5th line. The domestic economy is boosted, and we are concerned about whether the speed and extent of destocking brought about by the recovery of consumption downstream can support prices. The contract price of Shanghai Zinc 2007 is expected to operate within the range of 16,100 Mel 16600 yuan / ton. It is expected that domestic Shuangyan zinc will increase the water price by 140 Mel 160 yuan / ton in June.
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