[selection of SMM Weekly report] domestic zinc concentrate processing fees continue to be reduced this week and ore supply is tight.

"SMM Zinc Industry chain Weekly report" released, the weekly report SMM will select the hot topics, prices, market or major changes in the industry chain information released into a document for your reference.

The following is an excerpt from the weekly report of the zinc industry chain:

The zinc market predicts next week: from a fundamental point of view, time will gradually turn to the fourth quarter, and the risk of a second outbreak of the epidemic will increase gradually. This week, the risks of the UK and the euro zone have begun to emerge. Judging from the experience at the beginning of the year, the epidemic will first have a greater impact on consumption, that is, countries that have not yet achieved a complete economic restart may have another economic downturn, which directly affects overseas consumption and indirectly affects China's exports, which is worthy of vigilance. At the same time, we have also observed that the supply of overseas mines is still relatively tight, and the offer price of bulk orders is heard to be 80-100 US dollars / dry tonnage. If the supply fails to achieve volume until the fourth quarter, the profit level of smelters at home and abroad will be gradually compressed and suppress the enthusiasm of production. Gold, silver, silver and ten consumption peak season has passed, zinc price operation logic from consumption expectations to mineral supply is substantially tight switch, on the current supply and demand side, if the switching logic has not been confirmed, zinc may be overvalued. The current macro risk is greater, zinc prices are expected to fluctuate within the range. Beforehand In the next cycle, the main zinc will operate around 18700-19500 yuan / ton. Shanghai zinc spot is expected to report a rise of 140,280 yuan / ton in October, and Lun zinc will run around 2350-2500 US dollars / ton next week.

Processing fees: domestic zinc concentrate processing fees continue to be reduced this week, ore supply is relatively tight. Entering this week, negotiations on domestic mines and smelters have begun one after another. From the exchange between SMM and domestic mines and refineries, the average reduction in zinc concentrate processing fees in various regions of the country is 20000300 yuan / metal ton, and the mainstream quotations and transactions of imported mines this week are concentrated in 100,130 US dollars / dry ton. We believe that the reason for the reduction of domestic zinc concentrate processing fees lies in the domestic The output of the smelter has climbed rapidly compared with the previous year, and the operating rate has reached a high level compared with the same period last year, but the increase in mine demand is not enough to meet the supply of ore. According to SMM research, the overall year-on-year reduction is expected to reach more than 200,000 tons of metal. With the end of the fourth quarter, the reduction of northern mines in the domestic winter storage period begins one after another, and the domestic mine supply is expected to be further tight. Judging from the current raw material inventory of various smelters and the shipments signed in the future, it is expected that the production reduction may occur after November.

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Catalogue of "SMM Zinc Industry chain Weekly report" in this issue

Main points of this weekly report: processing fees, import profit and loss inventory

Hot spot of zinc industry: the import volume of concentrated zinc mines into Hong Kong increased month-on-month in August.

Zinc concentrate market: domestic zinc concentrate processing fees continue to be reduced this week and ore supply is tight.

Refinery dynamics

Import Zinc Market: expected Zinc performance strong Import loss narrowed to the margin of Safety

Zinc market forecast next week: zinc price or range shock operation next week pay attention to overseas macro guidance

Review of Zinc City: the second outbreak of the epidemic is worried about a sharp drop in zinc prices in the two cities.

Galvanizing: the demand for pre-festival reserve of galvanizing enterprises is increasing near the National Day holiday.

Die-casting zinc alloy: high zinc price suppresses downstream demand for lower stock of raw materials

Zinc oxide: the end consumption is stable and the enthusiasm of zinc oxide is improved when it falls.

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[China Zinc Industry chain High-end report] SMM exclusive monthly survey of zinc industry chain report, covering from zinc concentrate to zinc primary consumer operating rate and supply and demand profile. And announce the exclusive monthly zinc concentrate, refined zinc balance, continue to track the industry entity enterprises, update data. And through the supply and demand situation and data model to make a simple prediction of the future trend of zinc. "View details