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[summary of SMM Morning meeting] the peak season of domestic consumption is expected to support the upward trend of Shanghai Zinc.
Jul 24,2020 09:35CST
The content below was translated by Tencent automatically for reference.


Summary of the morning meeting of zinc in SMM on July 24th


Spot fundamentals


Shanghai: zinc bottomed out and rebounded, the morning market is mainly shipping, the long order is nearing the end, and the market demand is cooling. The quotation is rapidly lowered from 80 yuan / ton to about 60 yuan / ton, and a small amount is underreported to about 50 yuan / ton. The average price among traders has fallen from about 5 yuan / ton to 20 yuan / ton, and the price has fallen rapidly. In the second trading session, the quotation remained stable at about 60 yuan / ton, with the market trading weakening, the overall intraday trading was average, and the trading volume increased slightly compared with the previous day. (lidocaine)


Ningbo: yesterday's zinc price correction, due to the long order delivery in the near month, rising water in Shanghai fell, Ningbo market high-priced brand quotations fell. In the first trading session, Tiefeng News was near 100 yuan / ton for August contract, West Mining News was around 80 yuan / ton for August contract, Kirin was near 100 yuan / ton for August contract, Huize was around 150 yuan / ton for August contract, and Nanhua News was around 150 yuan / ton for August contract. Overall, yesterday's market transactions focused on low-cost brands, and the market turnover was significantly better than the day before yesterday. (lidocaine)


Guangdong: in the first trading session, the price fell yesterday, the holder tried to raise the price, and there was a slight replenishment at every bargain downstream, but the increment was limited, the market price was difficult, and the later quotation was loosened. Kirin, Mengzi, Huize, Tiefeng quoted water for the Shanghai zinc contract in September. The second trading session, downstream demand is still weak, individual holders offer low, pressure on the market transaction price, the overall transaction is general. Kirin, Mengzi, Huize, Tiefeng quotes for Shanghai zinc contract in September, the rising water is 10Mu15 yuan / ton. (bullish)


Tianjin: yesterday, Shanghai zinc shot up and dropped, and the spot market raised the discount quotation. The price is relatively uniform. The ordinary brand Bering News quoted a rise of 160 yuan per ton for the 08 contract, and Hong quoted a rise of 180 yuan per ton for the 08 contract. Chi Hong quoted a rise of 160 yuan per ton for the 08 contract, and the high-priced brand Zijin quoted a rise of 200 yuan per ton for the August contract. Baiyin quoted a rise of 150 yuan / ton for the 08 contract. Ha Zinc (including out of the warehouse) is quoted in the 08 contract for a rise of 70 RMB80 / ton. Zinc prices rebounded yesterday, due to Zijin August overhaul and Hongye overhaul reduction, superimposed due to the impact of the epidemic, the arrival of goods in Tianjin was affected; downstream, the downstream just needed to purchase yesterday, downstream enterprises wait and see mainly. On the whole, the deal was mediocre yesterday. (bullish)


Today's forecast zinc price: overnight, Lun zinc received a positive column, jumped away from the lower road long moving average support, KDJ opening narrowed. Overnight LME inventory increased by 16600 tons to 150050 tons, or 12.44%. The weak US dollar, non-ferrous gains, and the continuous addition of US economic stimulus measures have raised the trend of Zhenlun Zinc, but as the overseas epidemic continues to ferment, weak unemployment data in the United States have raised market concerns about a slowdown in the economic recovery and are expected to limit the upside of Len Zinc. Pay attention to macro guidance in the short term. Overnight, Shanghai zinc received a bald big positive column, the daily K center of gravity moved upward, the lower 10-day line provided support, and the positive column of MACD index expanded. Driven by the upside of the outer disk, Shanghai Zinc is also strong. Under the expectation of the peak domestic consumption season, with the gradual landing of the terminal project of the infrastructure plate, the fundamental support is temporarily strong, promote the upside of Shanghai Zinc, and pay close attention to the development of Sino-US relations and overseas epidemic situation in the short term.


Today's forecast: the price of lun zinc is expected to operate 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 320 yuan / ton.

price forecast

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