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[selected SMM Weekly report] under the restart of overseas economy, mines resume new maintenance at home and reduce the pressure on zinc supply side.
May 30,2020 08:37CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

"SMM Zinc Industry chain Weekly report" released, the weekly report SMM will select the hot topics, prices, market or major changes in the industry chain information released into a document for your reference.

The following is an excerpt from the weekly report of the zinc industry chain:

Zinc market forecast next week: in terms of Shanghai zinc, this week's premier's press conference proposed that large-scale policies do not rely on infrastructure projects, and about 70% of the funds are used to support residents' income, suppressing infrastructure expectations for domestic zinc consumption. From a fundamental point of view, Southern Nonferrous will be overhauled next week, while Silver Nonferrous, Anhui Bronze Crown and Hunan Xuanhua will continue to be overhauled. The main impact is non-ferrous in the south, which is expected to have a relatively obvious impact on the supply of zinc ingots in Guangdong and East China. In terms of imported zinc, some of the imported zinc ingots in the bonded area are not in storage this week, and it is expected that there will still be a surplus next week, or offset part of the reduction in overhaul. Overall, the pressure on the supply side has weakened compared with last week. On the consumer side, the order volume of the infrastructure section, which mainly drives zinc consumption, has declined, and the rush orders of some galvanizing enterprises have come to an end, and the subsequent increments may not be as expected. In the case of die-casting zinc alloy, when the order has not improved, there are still smelters competing for low-price alloys in the market, and there is a significant increase in pressure for alloy enterprises. Zinc oxide enterprises still do not have a new bright spot. From a fundamental point of view, it is still supported by the supply side. As far as the technical side is concerned, although the 20-day moving average is strongly suppressed, the KDJ index wants to become a golden fork, indicating that Shanghai zinc may have kinetic energy to break through the upper moving average. Overall, next week, Lun Zinc is expected to run at 1930mur1990 US dollars / ton; Shanghai Zinc main 2007 contract is expected to run at 16200Lue 16700 yuan / ton, and the spot side is expected to rise water around 100MUR 160 yuan / ton in June.

Processing fee: the supply of zinc concentrate in domestic area is stable, and the processing fee of zinc concentrate basically bottomed out in June. Entering this week, mines and smelters in various regions of the country have begun to negotiate zinc concentrate processing fees for June. According to the current research of SMM, it is expected that the national zinc concentrate processing fees will be reduced by 100yuan / metal ton month-on-month, while the processing fees of imported processing fees are expected to be 140,160 US dollars / dry ton, which does not change much. At present, except for the low raw material inventory of some refineries in China, the raw material inventory of most refineries is relatively safe, so the month-on-month reduction of domestic zinc ore processing fees slowed down in June.

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Catalogue of "SMM Zinc Industry chain Weekly report" in this issue

Main points of this weekly report: processing fees, import profit and loss inventory

Hot spot of zinc industry: refined zinc imports in April 2020 will continue to be low for five months or will increase slightly.

Zinc concentrate market: domestic zinc concentrate supply is stable. Zinc concentrate processing fees basically bottomed out in June.

Refinery dynamics

Zinc import market: zinc imports maintain small losses and import inflows are expected to have a margin.

Zinc City predicts next week: under the resumption of overseas economy, mines resume new domestic maintenance and reduce supply-side pressure.

Review of Zinc City: the price of zinc in the two cities is low and rebounding, and the domestic performance is relatively strong.

Galvanizing: end consumption is still recovering, enterprise inventory pressure is reduced.

Die-casting zinc alloy: order decline & low-price supply impact on the start-up of die-casting zinc alloy plant is difficult to improve

Zinc oxide: zinc oxide starts to stabilize the price of zinc and actively replenish the stock

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