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[summary of SMM Morning meeting] overnight fundamentals and macro aspects deviated from Shanghai Zinc and received the cross Xiaoyin line.
Jul 7,2020 09:25CST
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Source:SMM
The content below was translated by Tencent automatically for reference.

Summary of the morning meeting of zinc in SMM on July 7th

 

Spot fundamentals

 

Shanghai: smelter normal shipments, traders mainly shipments, morning market quotation stable at about 80 yuan / ton, weak transaction price down to about 75 yuan / ton, a small number of underreported to rise water about 70 yuan / ton, soon the transaction disappeared, the overall transaction is still weak, downstream to maintain on-demand procurement, the overall transaction is roughly the same as last week. (bullish)

 

Ningbo: there was less supply in the Ningbo market yesterday, and some traders were willing to raise the price. Tiefeng reported at the first time in the morning that the water rose 90 yuan / ton for the July contract, while the West Mining News raised 80 yuan / ton for the July contract, and a small amount of Kirin arrived. Traders have a strong willingness to raise the price, quoted as 100 yuan / ton for the July contract. Entering the second period of time, as the market turnover is relatively light, and traders are unwilling to ship goods at a low price, the rising water in the market is more deadlocked, which is basically maintained at about 80,000,000 yuan / ton for the July contract. Overall, yesterday's Ningbo market turnover is relatively light, mainly because last Friday some enterprises replenish the treasury overdraft this week consumption, most downstream enterprises are mainly wait-and-see. The transaction yesterday was worse than that of last Friday. (bullish)

 

Guangdong: in the first trading session, the initial shipments and price adjustments of the consignors are still relatively positive, but the rising discount is on the low side, the sentiment of selling up prices is increased, the market flow is slightly reduced, and traders can receive goods at low prices. Kirin, Mengzi and Huize quoted a price of 10 RMB30 / ton for the August contract of zinc in Shanghai, and 50 RMB10 / t for Feilong and Tiefeng. The second trading session, traders continue to lower prices to receive goods, low-price supply after the completion of the market quotation is relatively stable, there is not much room for downward float, downstream bargain just need a small amount of procurement, there is no significant improvement. Kirin, Mengzi, Blue Zinc quotation for Shanghai zinc August contract rose 15mur20 yuan / ton, Tiefeng water 10 yuan / ton. (bullish)

 

Tianjin: yesterday, Shanghai Zinc maintained concussion, the spot market maintained a rising discount price, and the price was relatively uniform. The ordinary brand lark newspaper quoted a rise of 140 yuan per ton for the 07 contract, and Hongyi quoted a rise of 150 yuan per ton for the 07 contract. Chi Hong quoted a rise of 130 yuan per ton for the 07 contract, and the high-priced brand Zijin quoted a rise of 210 yuan per ton for the July contract, while Baiyin quoted a rise of 150 yuan per ton for the 07 contract. Yunxi Daily quoted 100 yuan / ton of water for 07 contract, Xikuang (delivered) quoted 120 yuan / ton of water for 07 contract, fourth Ring Road (delivered) quoted 100 yuan / ton of water for 07 contract, KZ/YP quoted 70 yuan / ton of water for 07 contract, and Harbin Zinc (including depot) quoted 60PRI 70 yuan / ton for 07 contract. Zinc prices remained volatile yesterday, as Zijin factory did not ship yesterday, it will be shipped after 7.10, the trader Zijin brand raised the price, but the transaction was poor, while other brands maintained rising water quotations, shipments also decreased; downstream, the downstream still needs weak procurement, and the overall willingness to receive goods is general. On the whole, the turnover was light yesterday. (bullish)

 

Today's forecast zinc price: overnight Lun zinc received a big positive column, below the 40-day moving average support, MACD negative column narrowed. Overnight LME inventory decreased by 250t to 122275 t, or 0.2%. Overnight, US stocks closed higher, superimposed by strong economic recovery and expectations of a new round of economic stimulus package to boost market risk appetite, driving the general rise of non-ferrous metals and supporting the upward trend of non-ferrous zinc, but the development of overseas epidemics can not be ignored. Overnight, Shanghai zinc received a cross-shaped Xiaoyin line, the lower 5 / 10 line adhered to support, and the opening of KDJ index narrowed upward. The overnight stock market rose sharply, superimposed by non-ferrous general gains, boosting the trend of Shanghai zinc, but the fundamentals deviated from the macro aspects to limit the upward trend of Shanghai zinc. Focus on the support strength of the 5 / 10 moving average today.

 

Today's forecast: the price of lun zinc is expected to run in the range of US $2020 / ton. It is expected that the contract price of Shanghai Zinc 2008 will run within the range of 16400 Mel 16900 yuan / ton, and domestic zinc is expected to rise by 100 yuan / ton.

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