[SMM Zinc Morning News] geopolitical tensions escalate, Ren Zinc fell 1.18%

SMM, July 27th:

On Friday, the total number of oil wells in the US last week increased for the first time since March; Mexico is said to have launched an oil hedging program. The oil hedging plan protects Mexico from the collapse of crude oil. Nuchin: the economy is expected to rebound sharply in the third quarter; U.S. manufacturing PMI rebounded in July and total new home sales hit a record high in June. Us data are positive to boost commodities. Xi Jinping: we must promote the national automobile brand; prevent the illegal inflow of funds into the real estate market; and the US Consulate General in Chengdu will carry out the final clean-up before closing. We will continue to pay close attention to the development of Sino-US relations.

Last Friday, Lun Zinc opened at 2236 US dollars / ton. Pancu Lun Zinc briefly arranged along the daily average line, reaching a high of 2243 US dollars / ton, then non-ferrous Zinc fell, Lun Zinc stepped down around 2205 US dollars / ton, and the conflict between China and the United States escalated in the afternoon. The market risk aversion mood heightened, Lun Zinc dived downward, probed down 2187.5 US dollars / ton, short positions stopped leaving the market, Lun Zinc repaired up and broke through the Daily moving average Line, and entered the European trading moment. Lun Zinc upward correction, the center of gravity moved up, along the daily moving average, into the night market, long-short game, Lun Zinc concussion up to a high of 2225 US dollars / ton trying to break the failure pressure downside, giving up some of the gains, at 2210 US dollars / ton consolidation, the final closing down to 2211.5 US dollars / ton, down 1.18%, trading volume to 7288 lots, position reduced 525 to 204335 hands. Last Friday, Lun zinc recorded a negative column, the support of the 10-day line below was obvious, and the positive column of MACD narrowed. Last Friday, LME inventory increased by 4450 tons to 154500 tons, or 2.97%. Against the background of the continuous fermentation of the overseas epidemic, trade disputes between China and the United States have resumed, the market risk aversion mood has risen, and Lunzinc is weak, but the decline has narrowed somewhat due to the positive data of total sales of new homes in the United States in June and manufacturing data in July. Pay close attention to the development of Sino-US trade in the short term. The price of lun zinc is expected to operate in the range of 2200-2250 US dollars per ton.

Last Friday, the main 2009 contract of Shanghai zinc opened at 17945 yuan / ton, driven by the outer disk at the beginning of the day, and the Shanghai zinc ladder uplink reached 18135 yuan / ton. after many failed attempts, the bulls left the market, short-sellers entered and suppressed. Shanghai zinc concussion fluctuated lower along the narrow range of 18035 yuan / ton, the bulls gradually entered the market at the end of the market, the short-term pulled up the zinc price, and the center of gravity moved up to 18070 yuan / tonne. Finally, it closed up at 18065 yuan / ton, up 5 yuan / ton, or 0.03%. Trading volume decreased to 94332 lots, while position increased by 1365 lots to 96237 lots. Last Friday, Shanghai zinc recorded a positive pillar, the lower 10th line to provide support, KDJ indicators to become a golden fork. Macroscopically, the US data is good to drive, and under the background of domestic peak season consumption expectations, the social inventory is deconstructed faster, and the fundamental support is temporarily strong, boosting the trend of Shanghai zinc, but Sino-US relations increase short-term risk factors. The contract price of Shanghai Zinc 2009 is expected to operate in the range of 17900-18400 yuan / ton, and it is expected that the price of domestic Shuangyan zinc will rise by 60-70 yuan / ton in August.