[SMM Zinc Morning News] the dispute between China and the United States raises market concerns and exacerbates the overnight downward trend.

SMM, July 16:

Overnight, the reduction in EIA crude oil stocks in the United States last week was in line with market expectations; Russia's crude oil production in August may increase by 400000 barrels per day; and OPEC + effective crude oil production reduction in August is expected to be 810-8.2 million barrels per day. Hashimizi Dario: cash is the riskiest asset; Fed beige book: the economy recovers moderately in early July but the outlook remains highly uncertain. There is still uncertainty about overseas and global economic development. People's Bank of China: 400 billion yuan one-year MLF operation; Shenzhen Housing and Construction Bureau announced tightening of home purchase policy. Domestic monetary policy is expected to boost the recovery of downstream demand.

Overnight, Lun Zinc opened at 2200 US dollars / ton, and the daily average of Lunlun Zinc pressure fluctuated down to 2195 US dollars / ton. market sentiment warmed up in the afternoon, and the upward repair of Lunzn Zinc was blocked at the 2200 US dollars / ton integral mark. Slightly adjust the momentum, the European trading hours straight pull up and explore a high of 2222.5 US dollars / ton before bearing the pressure downside, the center of gravity moved to 2210 US dollars / ton wide shock, during the period of Brin Road upper rail suppression failed many times. Entering the night market, the US index went high and suppressed, Lun Zinc dived down, all the way down US $2163 / ton, then long positions poured in, Lun Zinc revised upward, recorded a V reversal, recovered part of the decline, and the center of gravity was sorted out and operated along the line of 2200 US dollars / tonne. Finally, it closed up at 2201 US dollars / ton, up 9 US dollars / ton, or 0.41%. The trading volume decreased to 8060 lots, and the position decreased to 207000 lots. Overnight Lun Zinc recorded a small positive line, the upper Bollinger Road on the track to form a compression, the lower piercing 5-day moving average support, KDJ indicators to form a dead fork. Overnight, LME inventory decreased by 225t to 122975 t, or 0.18%. Overnight market concerns about the recent dispute between China and the United States have intensified, and there is still a high degree of uncertainty about the prospects for overseas economic recovery, superimposed by crude oil to reduce production cuts, leading to a sharp intraday fall in crude oil that led to the weakening of Lunzem. In the short term, we still need to pay attention to macro changes. The price of lun zinc is expected to operate in the range of US $2,210 per ton.

Overnight, the main 2009 contract of Shanghai Zinc opened at 17885 yuan / ton. At the beginning of the day, the outer disk was dragged down, and the short sellers gradually entered the market and cracked down. Shanghai Zinc concussion fell all the way down to 17500 yuan / ton. The bulls entered at the low level, the bears stopped their earnings and left the market, and the Shanghai zinc went up higher and some of the backfilling decreased. The center of gravity moved up to 17710 yuan / ton, the center of gravity moved up slightly at the end of the session, and arranged along the daily moving average line. It finally closed down at 17750 yuan / ton, down 120 yuan / ton. The trading volume decreased by 0.67 yuan / ton to 81397 lots, and the position decreased by 1340 lots to 86284 lots. Overnight, Shanghai zinc recorded a small negative column, falling below the 5-day moving average, providing support below the 10-day moving average, pressing the upper track of Bollinger Road, and narrowing the red column of the MACD index again. Overnight, Shanghai zinc opened high and left low, non-ferrous general fell superimposed the outer disk downward drag, and the uncertainty of Sino-US currencies and Sino-US trade relations, market panic intensified, Shanghai zinc performance was weak, but the market expectations for strong consumption of infrastructure construction are expected to limit the downward space of Shanghai zinc. The contract price of Shanghai Zinc 2009 is expected to operate within the range of 17400 Mel 17900 yuan per ton. It is expected that domestic Shuangyan Zinc will rise 60 RMB80 per ton in the August contract.

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