[summary of SMM Morning meeting] fundamentals are weak and lack of action energy on Shanghai Zinc overnight.

Summary of the morning meeting of zinc in SMM on July 3

Spot fundamentals

Shanghai: smelters ship goods normally, traders mainly ship goods. The intra-day market quotation is stable at about 80 yuan per ton in the former daily newspaper, and some traders in the morning market quickly sell goods at a low price of 70 Mei 75 yuan per ton, but the market is not willing to follow the adjustment. It is still deadlocked at about 80 yuan per ton, while the downstream maintains on-demand procurement whenever it falls, the circulation of imported zinc in the market is decreasing, and the quotation is stable at about 5060 yuan per ton. The overall turnover within the day has not changed much from that of the previous day. (bullish)

Ningbo: shipments in the Ningbo market were still relatively weak yesterday. Tiefeng reported in the first session of the morning rose around 90 yuan / ton for the July contract, while West Mining reported a rise of 80 yuan / ton for the July contract, with a small amount of Kirin driving down the price. it is reported that the water rose 90 yuan / ton for the July contract. Enter the second period of time, the market rising water changes less, basically maintained at the contract life in July although 80 RMB90 / ton. Overall, Ningbo market supply slightly tightened, mainly because consumption is relatively weak, some refinery delivery direction has shifted, yesterday downstream enterprises are mainly wait-and-see, the overall trading is still light. (bullish)

Guangdong: in the first trading session, the center of gravity of futures prices has moved down, but under the condition that the terminal order has not been improved, the downstream still needs to purchase less, the market demand is generally weak, and the market is still active in shipping. Kirin, Mengzi, Huize and Danxia quoted water for the Shanghai zinc contract for August up 30 RMB40 / ton and Tiefeng 20 RMB30 / ton. In the second trading session, the market turnover did not improve, and traders mainly depressed prices, but the motivation to further reduce prices was insufficient, and the overall transaction was mediocre. Kirin, Mengzi, Blue Zinc quoted for the Shanghai zinc August contract rose 30 yuan / ton, Tiefeng water rose 20 yuan / ton. (bullish)

Tianjin: yesterday, the low level of zinc in Shanghai fluctuated, and the spot market maintained a rising discount price, which was relatively uniform. The ordinary brand Bering News quoted a rise of 130 yuan per ton for the 07 contract, and Hongyi quoted a rise of 150 yuan per ton for the 07 contract. Chi Hong quoted a rise of 130 yuan per ton for the 07 contract, while the high-priced brand Zijin quoted a rise of 180 yuan per ton for the July contract, while Baiyin quoted a rise of 150 yuan per ton for the 07 contract. Yunxi Daily quoted a rise of 70 yuan per ton for the 07 contract, Xikuang (delivered to) quoted a rise of 60 million yuan per ton for the 07 contract, KZ/YP quoted a rise of 100 yuan per ton for the 07 contract, and Harbin Zinc (including the depot) quoted a rise of 40 yuan per ton for the 07 contract. Yesterday's zinc price low shock, superimposed Zijin factory yesterday did not ship, traders Zijin brand price shipments, other brands maintain the previous day's quotation, overall shipments; downstream, yesterday's zinc disk weakening slightly, however, the absolute price decline is not large, the overall delivery is still in need of weak procurement. On the whole, yesterday's transaction was the same as that of the day before yesterday. (bullish)

Today's forecast zinc price: overnight Lunren zinc received a negative column, with a long shadow line, upward test Brin Road on the rail suppression strength, MACD negative column expansion. Overnight LME inventory decreased by 25 tons to 122525 tons, a decrease of 0.02%. The overseas epidemic continues to ferment in some areas, the economic restart is in doubt, the US non-farm data are in doubt, the unemployment rate is still high, and market worries are rising. Overnight Shanghai zinc received a small negative column, the lower 20th line to provide support, KDJ opening down expansion. Fundamentals, the mine-side supply is gradually relaxed, processing fees are expected to increase in July, smelters resume production and increase production, the supply side support is insufficient, superimposed downstream consumption weakens, limiting the upward space of Shanghai zinc.

Today's forecast: the price of lun zinc is expected to run in the 2060 US dollars / ton area in 2010. It is expected that the contract price of Shanghai Zinc 2008 will run within the range of 16400 Mel 16900 yuan / ton, and domestic zinc is expected to rise by 20 yuan / ton.