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[summary of SMM Morning meeting] Shanghai Zinc continues to fluctuate and downstream purchasing weakens
May 29,2020 09:43CST
The content below was translated by Tencent automatically for reference.

Minutes of Zinc Morning meeting in SMM on May 29th


Spot fundamentals


Shanghai: zinc prices have fallen, smelter shipments have been controlled, the morning market from rising water 150 yuan / ton down to rising water 140 yuan / ton, transaction feedback is still not good, some traders take the initiative to adjust prices to 130 yuan / ton to promote transactions, but the mainstream market quotations are concentrated on rising water 135murl 140 yuan / ton, and some of the average price-5 / average price is OK. Into the second trading session, the domestic quotation remained stable, while the downstream brand Shuangyan due to import squeeze, the quotation was lowered, from the rising water 190lv 200 yuan / ton down to 170lue 180 yuan / ton, import SMC, YP quotation is relatively stable, quoted water 120murt 140 yuan / ton, downstream every fall into the market inquiry procurement, but bearish mood is strong, procurement control, the overall intraday turnover is slightly better than yesterday. (lidocaine)


Ningbo: zinc prices are steadily adjusted today, and traders in Ningbo market are actively shipping. In the morning, it basically continued yesterday's market quotation. In the first period of time, Tiefeng, Huize and Kirin reported a water increase of 150 yuan / ton for the June contract, Yunxi News rose 130 yuan / ton for the June contract, and the West Mining News rose 240 yuan / ton for the July contract, which translates to 100rel 110 yuan / ton for the June contract. However, zinc prices are rising again today, downstream enterprises are mainly wait-and-see, the willingness to receive goods is obviously weakened, compared with yesterday's willingness to inquire is also weakened, the overall trading situation in the market is poor. It is worse than yesterday. (bullish)


Guangdong: during the first trading session, the price difference of the initial futures in the current month / the next month is relatively large, the holder is still selling at a high price, the supply of Gaoshengshui is slightly closed, and the market quotes are mostly for the net price. Kirin and Mongolia have quoted a price of 10 yuan per ton. Tiefeng is 10 yuan / ton lower than the net price, and the lower reaches just need to purchase at a low price, and traders contribute to most market transactions. Kirin and Mongolia quoted a price for the July contract of zinc in Shanghai for 150 RMB170 / ton, and Tiefeng Shengshui 140 RMB150 / ton. The second trading session, in the face of Gaoshengshui traders lack of willingness to receive goods, downstream procurement is also limited, while the holder will be more willing to ship at high prices, the market quotation has been loosened, but the overall transaction is not much. Kirin quoted zinc for Shanghai July contract up 150 yuan / ton, Tiefeng water 140 yuan / ton. (bullish)


Tianjin: today, Shanghai zinc rebounded, the spot market maintained a rising discount price, and the price was relatively uniform. The ordinary brand Bering News quoted a rise of 300 yuan per ton for the 06 contract, and Hongyi quoted a rise of 330 yuan per ton for the 06 contract. Chi Hong quoted a rise of 300 yuan per ton for the 06 contract, and the high-priced brand Zijin offered a rise of 380 yuan per ton for the June contract, while Tiefeng quoted a rise of 280 yuan per ton for the 06 contract. The fourth Ring Road quoted a rise of 250 yuan per ton for the 06 contract. Today, zinc prices fell and rebounded, due to the low circulation of mainstream brands in the market, refineries and traders maintained high-price shipments; downstream, Tianjin spot fell slightly today, downstream enterprises in the recent weak trend of zinc prices, bearish sentiment increased, consider to continue to receive goods on the bargain. On the whole, today's turnover is weaker than yesterday's. (bullish)


Today's forecast zinc price: overnight driven by overseas crude oil uplink, Lun zinc closed a small positive line, the top 5 line to form a suppression. 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 demolitions, to provide support for Len Zinc, coupled with short-term tensions between China and the United States, Len Zinc is expected to be weak and volatile. 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. Boost the domestic economy, pay attention to whether the speed and extent of destocking brought about by the recovery of downstream consumption can support prices.


Today's forecast: the price of lun zinc is expected to operate in the range of US $1910 / ton. It is expected that the contract price of Shanghai Zinc 2007 will run in the range of 16,100Muth16600 yuan / ton. Domestic zinc dropped by 10 yuan per ton.

price forecast

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