[SMM Zinc Morning News] Market optimism has cooled down overnight.

SMM, July 15:

Overnight, US API crude oil stocks fell by much more than expected by 8.322 million barrels; OPEC raised its forecast for global crude oil demand growth in 2020; OPEC + ministers will discuss compensatory production cuts today. Crude oil inventory reduction is good for oil prices. Brainard: forward guidance is at the heart of the Fed's response; Belgian experts warn of a second wave of coronal pneumonia in Europe; and the UK's GDP will see the biggest year-on-year decline in 300 years. The second fermentation of the epidemic in Europe and a big drop in economic data have led to a cooling of market optimism. China's central bank made a net investment of 30 billion yuan on Tuesday; the National Development and Reform Commission: eliminating the "temperature difference" between supply and demand to expand domestic demand; and China's crude oil imports reached the highest monthly and daily record in June. The domestic economy has steadily recovered.

Overnight, Lun Zinc opened at US $2253.5 / ton, dragged down by the collapse of US stocks and crude oil, non-ferrous Zinc fell at the beginning of the day, and Lun Zinc quickly fell to around US $2210 / ton, hitting a low of US $2201 / ton and struggling to maintain the integer mark of US $2200 / ton. in the afternoon, the amplitude successfully broke through the daily average line and hit 2226 US dollars / tonne, failed to stand firm and fell back again in European trading hours, fluctuating along a wide range of 2200 US dollars / ton and entering the night market. Us index upward suppression, Lun Zinc quickly fell down $2170 / ton. After finding support, the center of gravity moved up along $2190 / ton to close down at $2192 / ton, down $62.50 / ton, or 2.77%. The trading volume decreased to 9707 lots, and the position increased by 245 lots to 208000 lots. Overnight lun zinc fell below the $2200 / ton integer mark, closed a large negative column, broke through the 5-day moving average support, and narrowed the KDJ opening. Overnight LME inventories fell 275 tonnes, or 0.22%, to 123200 tonnes. The development of the global epidemic is still grim, there are signs of a second epidemic, superimposed UK GDP data have dropped sharply, market optimism has cooled, and overseas economic recovery is slow, downstream consumption support is insufficient, and the overnight shock of zinc has fallen, but large-scale fiscal stimulus policies of various countries are expected to limit the room for Lun zinc to fall. The price of lun zinc is expected to operate in the range of US $2190 per ton.

Overnight, the main 2009 contract of Shanghai Zinc opened at 17840 yuan / ton, which was dragged down by the outer disk at the beginning of the day. Shanghai Zinc quickly fell and fell by 17735 yuan / ton, the short sellers stopped earnings and left the market, and the center of gravity was revised upward, and the center of gravity was adjusted upward along 17850 yuan / ton. then the bulls brought capital into the market. Shanghai zinc rushed up 17995 yuan / ton, short high sniper, Shanghai zinc concussion down, recorded an inverted V pullback, the center of gravity fluctuated in a narrow range of the daily moving average line, and the center of gravity moved slightly up to 17900 yuan / ton. The final close fell 17885 yuan / ton, down 195 yuan / ton, down 1.08%, the trading volume decreased to 55338 lots, and the position increased by 1445 lots to 86746 lots. Overnight, Shanghai zinc received a small positive column, the center of gravity moved down, the waist pierced the upper rail of Bollinger Road, and the red column of MACD index narrowed. Overnight stock index downward drag, non-ferrous general decline, Shanghai zinc is also weak, Sino-US trade relations and overseas epidemic development uncertainty, superimposed domestic flood season water level exceeding records, macro negative zinc prices, however, domestic consumption expectations are still expected to have a certain support for zinc prices. It is expected that the contract price of Shanghai Zinc 2009 will run in the range of 17,700 won per ton, and it is expected that the domestic Shuangyan Zinc will rise 50 won 70 yuan per ton in the August contract.

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