[minutes of SMM Morning meeting] optimistic expectations of a pick-up in demand will boost the trend of zinc in Shanghai.

Summary of the morning meeting of zinc in SMM on July 21

Spot fundamentals

Shanghai: the smelter shipped normally, the domestic circulation in the market is still not high, and the trading volume of traders is normal. The domestic quotation in the market has further risen from 100 yuan / ton to about 110 yuan / ton, and the transaction feedback is limited. The average price of SMM net and the average price + 5 are more active. Into the second trading session, the market quotation remained stable at about 110 yuan / ton, trading activity among traders decreased, downstream procurement is still no bright spot, the overall market turnover is mediocre. (bullish)

Ningbo: the correction in zinc prices yesterday led to the buying mood downstream, and the shipments of traders in the Ningbo market were more active. during the first trading session, Tiefeng was near 100 yuan / ton for the August contract, and the West Mining News was around 80 yuan / ton for the August contract. Kirin reported that the water rose around 130 yuan / ton for the August contract, and Huize reported around 200 yuan / ton for the August contract. In addition, some imported zinc, such as Harbin zinc, is quoted around 10 yuan / ton for the August contract, and Myanmar zinc is reported around 50 yuan / ton for the August contract. Market downgrade overlay market supply circulation is more abundant, Ningbo market trading improved yesterday, downstream enterprises purchase willingness to pick up. (lidocaine)

Guangdong: during the first trading session, the price was low and fluctuating, and the holder tried to raise the price early, but the weekend market arrival was still high, and the holder's willingness to ship goods was strong, and the later quotation was slightly loosened. The net price was floated at 5 won 10 yuan. Traders bought water at a low price, and the market transaction was OK. Kirin, Mengzi and Huize quoted a price of 2540 yuan / ton for the Shanghai zinc contract in September. In the second trading session, traders mainly received goods at depressed prices, but the prices were too low and the holders were not willing to adjust prices, and the market quotations were gradually unified. As prices rose, downstream purchases declined, and market trading weakened. Kirin, Mengzi and Huize quoted a price of 30 yuan / ton for the September contract of zinc in Shanghai. (lidocaine)

Tianjin: yesterday, the decline of Shanghai zinc widened, and the spot market raised the discount quotation, which was relatively uniform. The ordinary brand Bering News quoted a rise of 140 yuan per ton for the 08 contract, and Hongyi quoted a rise of 150 yuan per ton for the 08 contract. Chi Hong quoted a rise of 140 yuan per ton for the 08 contract, while the high-priced brand Zijin quoted a rise of 180 yuan per ton for the August contract, while Baiyin quoted a rise of 180 yuan per ton for the 08 contract. The fourth Ring Road (delivered) quoted 120 yuan / ton for the 08 contract, and Ha Zinc (including the depot) quoted 70 yuan / ton for the 08 contract. The decline in zinc prices widened yesterday, and traders raised their discount quotations, all of which reflected that shipments were relatively smooth after yesterday's falling prices, with some traders shipping at high prices; downstream, absolute prices fell sharply yesterday, and downstream enterprises' willingness to buy goods improved, and the terminal project in North China was warmer than in the previous period. On the whole, yesterday's turnover was better than that of last week. (lidocaine)

Today's forecast zinc price: overnight Lun Zinc received a long shadow Xiaoyang column, the bottom of each long moving average into a multi-head arrangement, the upper 5-day line to form a suppression, MACD index Yang column narrowed. Overnight LME inventory decreased by 700t to 121700 t, a decline of 0.57%. The momentum of slight decline in LME inventory continued. A series of good news about the overnight new crown vaccine, superimposed by a new round of fiscal stimulus negotiations in the United States and negotiations on the European Union recovery fund, have heightened market optimism, but the development of the overseas epidemic can not be ignored. Pay attention to macro guidance in the short term. Overnight, Shanghai zinc received a bare foot positive column, the upper Bollinger Road upper rail formed a compression, the lower part was far away from each long moving average, and the KDJ index was opened and expanded downwards. Driven by the outer disk overnight, Shanghai zinc rose first and then suppressed it. The overseas macro-economy is positive, the economic restart process is advancing, the exports of some end products have improved slightly, the superimposed infrastructure plate projects in some parts of the country have been landed one after another, and the market is optimistic about the rebound in demand to boost the trend of Shanghai zinc. However, the continued fermentation of Sino-US and Sino-British trade relations also limits the upward trend of Shanghai zinc.

Today's forecast: the price of lun zinc is expected to operate in the range of US $2170 / ton. It is expected that the contract price of Shanghai Zinc 2009 will run in the range of 17,500Muth18000 yuan / ton, and it is expected that domestic zinc will increase by 240yuan / ton.