[summary of SMM Morning meeting] geopolitical situation is tense. Shanghai Zinc stops Yang and turns Yin the other night.

Summary of the morning meeting of zinc in SMM on July 23rd

Spot fundamentals

Shanghai: zinc futures are higher, market shipments are mainly, long orders are coming to an end, traders' demand has declined, and downstream fear of heights only needs procurement, the overall demand has cooled, and the domestic quotation has been lowered from about 100 yuan / ton to about 90 yuan / ton. the overall transaction was flat. (bullish)

Ningbo: zinc prices rose again yesterday, refineries actively shipped goods, and there was ample supply in the market. 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 around 130 yuan / ton for the August contract, and Huize newspaper basically maintained the previous day's water rise around 180 yuan / ton for the August contract, but due to yesterday's market rally. Downstream purchase intention deteriorated, the follow-up market rising water did not change much, and the transaction was weaker than that of the day before yesterday. (bullish)

Guangdong: in the first trading session, futures prices rose and fell back, and the overall center of gravity rose again to above 18000 yuan, while the lower reaches were mostly wait-and-see at the high price. The holder initially tried to push up the price and shipped the goods, but later saw the unsmooth quotation loosened. Kirin, Mengzi, Huize and Tiefeng quoted water for the Shanghai zinc contract in September up 15,540 yuan / ton. In the second trading session, the overall procurement demand downstream is still limited, in the lack of downstream demand support, individual holders continue to lower prices, but on the whole, if the rising water is too low, the holders are reluctant to sell, and the market transaction is relatively deadlocked. Kirin, Mengzi, Huize, Tiefeng quoted price for Shanghai zinc contract in September, 10Lue 20 yuan / ton. (bullish)

Tianjin: yesterday, Shanghai zinc rose and dropped, and the spot market maintained the price of rising water, and the price was more divergent. The ordinary brand Bailingbao quoted a rise of 140mur150 yuan / ton for the 08 contract, Hong quoted a rise of 130 yuan / ton for the 08 contract, Chi Hong quoted a water price of 130 yuan / ton for the 08 contract, and the high-priced brand Zijin quoted a water price of 200 yuan / ton for the August contract. Bai Yin Bao quoted a water increase of 160 yuan / ton for the 08 contract, the price of the high-priced brand Zijin rose around 200 yuan / ton for the August contract, and the Baiyin newspaper quoted a water price of 160 yuan / ton for the 08 contract. Ha zinc (including out of the warehouse) is quoted as a rise of 80 yuan / ton for the 08 contract. Zinc prices rose and fell yesterday, the first period of time traders maintained the previous day's quotation, but because yesterday's smelter shipments were less, stack some traders out of stock, the spot market price shipments; downstream, the spot absolute price rose by a large margin yesterday, downstream enterprises wait and see mainly, the willingness to receive goods is weaker than the day before. On the whole, the turnover was light yesterday. (bullish)

Today's forecast zinc price: overnight Lun zinc received a negative column, upward test Bollinger Road on the track, the lower 20-day line to provide support, KDJ index opening down expansion. Overnight LME inventory increased by 12400 tons to 133450 tons, an increase of 10.24%. LME inventory rose sharply, which was bad for zinc prices. Non-ferrous Platinum fell, Lunzn Zinc also showed weakness, the unexpected increase in US crude oil showed weak market consumption, and the sharp decline in US employment superimposed another upgrading of Sino-US relations, and market risk aversion heightened. However, the EU recovery plan is expected to limit the downside of Lunzin. Overnight, Shanghai zinc recorded Xiaoyin line with a long shadow line, which broke through the support of the 5 / 10-day line, and the positive column of MACD index narrowed. Due to the downward drag of the outer disk, Shanghai zinc stopped Yang and turned negative, escalating tensions between China and the United States heightened market risk aversion, Shanghai zinc regained its downward trend, but downstream demand recovery expectations are expected to limit downside space. Pay close attention to the development of Sino-US relations in the short term.

Today's forecast: the price of lun zinc is expected to run in the range of 2210 murals, 2260 US dollars per ton. It is expected that the contract price of Shanghai Zinc 2009 will run in the range of 17,500Muth18000 yuan / ton. Domestic zinc dropped 160 yuan per ton.