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[summary of SMM Morning meeting] Macro-positive improvement of risk appetite overnight Shanghai Zinc High shock finishing
Jul 10,2020 09:24CST
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Source:SMM
The content below was translated by Tencent automatically for reference.

Minutes of the morning meeting of zinc in SMM on July 10th

 

Spot fundamentals

 

Shanghai: there is almost no trading in the morning market, and the holder actively quotes. The transaction of the ordinary zinc brand in the market is concentrated on the average discount of 50.10 yuan / ton to the SMM net, and the market quotation rises 60 yuan / ton to the 2008 contract in the morning, and the later part of the consignor lowers the bid price to 50 yuan / ton. Entering the second period of time, the market quotation is relatively stable, but due to light trading, there is a low market price of 40 yuan / ton of water, and the holder maintains a quotation of 50 yuan / ton for the 2008 contract; the spot price is higher, and there was almost no deal at the downstream high price yesterday. The high price of the consignor is dominated by shipments, and the performance of spot rising water is relatively weak. (bullish)

 

Ningbo: overnight zinc prices rose sharply, and the market basically entered a state of price and no market yesterday. During the first trading session, traders lowered their tentative quotations for rising water. Tiefeng reported that the water rose around 80 yuan / ton for the August contract. West Mining reported that the water rose around 70 yuan / ton for the August contract, and Kirin reported a water increase of 90 yuan / ton for the August contract, but the disk pulled up, and there were almost no inquiries and transactions from downstream enterprises, and only a small number of traders traded. However, on the whole, the market is still in a state of price and no market, the rising water has not changed obviously, and the willingness of the consignor to ship goods is relatively light. Yesterday's market turnover was significantly worse than that of the day before yesterday. (bullish)

 

Guangdong: in the first trading session, futures prices opened high and went high, rising sharply compared with the day before yesterday, there were few inquiry purchases downstream, the shippers' shipments were not smooth, and the traders received the goods at a discount, driving market trading. Kirin and Mongolia quoted a discount of 10 yuan / ton to flat price for the August contract of zinc in Shanghai, and 20 yuan / ton of Tiefeng discount. The second trading session, prices are still strong volatility, downstream demand has not increased, individual holders slightly adjust the price of shipments, the market wait-and-see mood is strong, the overall trading is general. Kirin and Mongolia quoted a discount of 15 yuan / ton to Pingshui for the August contract for Shanghai zinc, and 20 yuan / ton for Tiefeng. (bullish)

 

Tianjin: yesterday, Shanghai zinc rose sharply, and the spot market lowered the discount price, and the price was relatively uniform. The ordinary brand Bering News quoted a rise of 100 yuan per ton for the 07 contract, and Hongyi quoted a rise of 110 yuan per ton for the 07 contract. Chi Hong quoted a rise of 100 yuan per ton for the 07 contract, while the high-priced brand Zijin quoted a rise of 200 yuan per ton for the July contract, and Baiyin quoted a rise of 120 yuan per ton for the 07 contract. Yunxi Daily quoted 80 yuan / ton of water for 07 contract, Xikuang (delivered) quoted 60 yuan / ton of water for 07 contract, Sihuan (delivered) quoted 60 yuan / ton of water for 07 contract, Japan Zinc News quoted 100 yuan / ton of water for 07 contract, and Harbin zinc (including depot) quoted 6070 yuan / ton for 07 contract. Zinc prices rose sharply yesterday, absolute prices rose sharply, traders lowered their discount quotations, but shipping was difficult, and some traders suspended shipments; downstream, the market rose sharply yesterday, downstream wait-and-see, almost no intention to buy. On the whole, there were few transactions in Tianjin market yesterday. (bullish)

 

Today's forecast zinc price: overnight Lun zinc recorded four Lianyang, daily k center of gravity further moved up, break through Brin Road on the track, MACD index Yang Zhu expanded. Overnight, LME inventory decreased by 175t to 121775 t, or 0.14%. Boosted by optimism, Lun Zinc is favored by capital, and the surge in market risk appetite dilutes the negative impact of the continued fermentation of the epidemic on the resumption of the overseas economy, supporting the trend of Lun Zinc. Pay close attention to the development of overseas epidemic situation in the short term. Overnight Shanghai zinc recorded a small Yin line, the lower Bollinger Road on the track support, jump off the lower averages, KDJ index opening expansion, the technical side is bullish. Macro positive to enhance risk appetite, Shanghai zinc in the high shock operation, but the fundamentals are weak to limit the upside space of Shanghai zinc. Be on guard against changes in the situation between China and the United States recently.

 

Today's forecast: the price of lun zinc is expected to run in the range of 2170 US dollars / ton. It is expected that the contract price of Shanghai Zinc 2008 will run within the range of 17,100Muth17600 yuan / ton, and domestic zinc is expected to rise by 240yuan / ton.

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