[SMM analysis] who touched the nerves with the rapid advance of Shanghai Zinc? Detached from fundamentals?

SMM7 March 13 News: last week, China's A-share performance was eye-catching, seizing the financial market "C position", market sentiment warmed up, non-ferrous metals rebounded strongly. Driven by macro sentiment, the 2008 contract of Shanghai Zinc rose to 18195 yuan / ton at one point, rebounding 6.47% from the closing price on July 8 and closing at 18030 yuan / ton in the day, up 2.62%.

According to the fundamentals of zinc in Shanghai, the support for zinc price is still weak, and from the point of view of the supply side, according to SMM research, as of July 10, the TC of domestic zinc concentrate was 5200 yuan / ton, up 50 yuan / ton compared with the week on July 3. The bottoming out of processing fees indicates an increase in supply at the mine end, while higher processing fees boost the willingness of smelters to produce. This week, Anhui Tongguan and other smelters completed maintenance and resumed normal production, while the recent trend of zinc prices is strong, the smelter is willing to ship goods well, and the overall pressure on the supply side is on the high side.

On the consumer side, due to the strong rebound in zinc prices, downstream enterprises are less willing to buy and only need to purchase. And at present, it is the off-season of domestic consumption, the order situation in the lower reaches of zinc is slightly weaker than the previous month, and the production scheduling of galvanizing enterprises in July is worse than the previous month. On the whole, the fundamental support is weak.

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