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[summary of SMM Morning meeting] the rise of zinc in Shanghai slowed down overnight and paid close attention to the impact of flood season in the short term.
Jul 14,2020 09:31CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

Summary of the morning meeting of zinc in SMM on July 14

 

Spot fundamentals

 

Shanghai: the smelter shipped normally, the circulation of ordinary domestic products on the market was slightly tightened, the demand of traders was supported by long orders, and the quotation was deadlocked at about 40 yuan / ton of water in August, and the acceptance of the consignor was limited; into the second trading period, the market was mainly to receive goods, and the quotation was raised to about 50 yuan / ton, and the overall transaction was mediocre. The market Shuangyan circulation is abundant, the quotation drops to the same price level as the domestic price, the transaction is weak, the absolute price is close to the high of 10000, the downstream inquiry purchase is few, only the purchase is just needed, and the overall transaction within the day is weak. (bullish)

 

Ningbo: zinc prices rose strongly yesterday, and the market buying situation was poor. In the first trading session, traders continued to quote last Friday. Tiefeng reported that the water rose around 70 yuan / ton for the August contract, and the West Mining News rose around 60 yuan / ton for the August contract. A small amount of Kirin and Huize arrived yesterday and reported around 80 yuan / ton for the August contract. Entering the second trading session, the rising water of the market has not changed significantly, mainly because the increase in zinc price suppresses the willingness of downstream enterprises to buy, downstream enterprises are not willing to buy, and the market trading is only contributed by traders. From yesterday's point of view, the market turnover is obviously worse than last Friday. (bullish)

 

Guangdong: during the first trading session, although futures prices were high and volatile, the futures spread widened next month and was close to the delivery limit price, the holders shipped at a relatively high price, and a small number of transactions were mainly made among traders. Kirin and Mongolia quoted prices for the August contract of zinc in Shanghai by 10 Meng 20 yuan / ton to flat water, and a small amount of Feilong discount of 10 yuan / ton. In the second trading session, futures prices fluctuated upwards, the price of the holder was loose, but the range of adjustment was limited, and downstream fear of high just needed a small amount of purchase. Kirin and Mongolia quoted a price of 10 yuan / ton for the August contract of zinc in Shanghai, and a discount of 10 yuan / ton for blue zinc to Pingshui. (bullish)

 

Tianjin: yesterday, Shanghai Zinc continued to rise, and the spot market lowered the discount price, and the price was relatively uniform. The ordinary brand Bering News quoted a rise of 80 yuan per ton for the 08 contract, and Hongyi quoted a rise of 100 yuan per ton for the 08 contract. Chi Hong quoted a rise of 80 yuan per ton for the 08 contract, while the high-priced brand Zijin quoted a rise of 150 yuan per ton for the August contract, while Baiyin quoted a rise of 60 yuan per ton for the 08 contract. The fourth Ring Road (delivered) quoted a rise of 70 yuan / ton for the 08 contract, and Ha Zinc (including the depot) quoted a rise of 60 yuan / ton for the 08 contract. Zinc prices rose again yesterday, superimposed Zijin brand arrival, high-priced brands lowered rising water prices, but shipments are still not smooth; downstream, after the absolute price center continues to move up, the willingness to receive goods is poor, remain weak just need to purchase. On the whole, the turnover in Tianjin market was still poor yesterday. (bullish)

 

Today's forecast zinc price: overnight, Lun zinc recorded six Lianyang, the price hit a new high, the lower Bollinger Road on the track to provide support, MACD indicators Yang Zhu expansion. Overnight LME inventories fell by 97 tons to 123475 tons. The abundant liquidity and rising inflation brought about by broad currencies and creditworthiness in the world's major economies have stimulated commodity financial attributes and supported the trend of Lunzhi. however, the US fiscal deficit has superimposed the impact of the epidemic on the economy, and market optimism has cooled. Overnight, Shanghai zinc recorded a positive column, the center of gravity further moved upward, below jumped out of the multiple arrangement pattern of each moving average, and the opening of KDJ index became slower. Under the optimistic background of the capital market, the fiscal stimulus, the stock market is red, the non-ferrous metal rose, boosting the trend of Shanghai zinc, but there are many uncertainties about the impact of Sino-US trade relations and flood season on terminal production, which is expected to limit the upward space of Shanghai zinc. In the near future, we will pay attention to the impact of the flood season on the local operating rate.

 

Today's forecast: the price of lun zinc is expected to run in the range of US $2220 / ton. It is expected that the contract price of Shanghai Zinc 2009 will run within the range of 18000 Mel 18500 yuan / ton, and domestic zinc is expected to rise by 10 yuan / ton.

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