[2019.10.16 minutes of Zinc Internal Morning meeting] the overnight domestic economic data is poor and the action on zinc prices is weak.

SMM October 16 Zinc Morning meeting: overnight domestic Economic data is not good Zinc Price pressure on the Action can be weak

Zinc Morning meeting: macroscopically: the Chinese Foreign Ministry has confirmed that China and the United States have reached a substantive first-stage economic and trade agreement, but people familiar with the matter say China wants the United States to abolish tariffs before it is possible to buy as much as $50 billion in agricultural goods. The pound soared as EU and British negotiators were said to be close to reaching a draft Brexit agreement. The IMF cut its forecast for global economic growth this year to a 10-year low and lowered its forecast for China's GDP this year and next. The State Council of China has amended regulations to relax the entry conditions for foreign banks and insurance companies. China's credit data for September were better than expected, with the central bank saying it was "particularly focused" on follow-up inflation. The US House of Representatives passed the Hong Kong Human Rights and Democracy Bill.

Fundamentals: yesterday's spot review: disk high volatility trading slightly light

Shanghai: in the first trading session, the holder reported a 120-130 yuan / ton increase in the 1911 contract, and the mood of shipping and receiving goods in the market was relatively low. In the second trading session, the zinc price continued to fluctuate around Wanjiu, and the holder lowered the price of rising water by 110-120 yuan / ton to the 1911 contract. As a result of the lead and zinc international annual meeting, the trader market transaction is still relatively light, some downstream enterprises purchase on demand, maintain the rigid demand purchase volume, the market overall trading is general.

Guangdong: refinery normal shipment, the market supply circulation is more abundant. The morning quotation of the holder is concentrated in the average price of-10 yuan / ton, part of which is quoted near the average price, and the price of the contract is quoted in the vicinity of the 11 contract discount of 30-40 yuan / ton; entering the second trading session, the market transaction price is concentrated in the discount of 40-50 yuan / ton to the 11 contract, the disk is pulled up, the willingness to buy downstream is low, and the trading between traders is also light. On the whole, the transaction situation of Guangdong market today is worse than that of yesterday.

Tianjin: refinery shipments are normal today. In the market, the circulation of goods is still tight. The quotation of high-priced brand source is concentrated in about 130-170 yuan / ton of 11 liter water, and the quotation of ordinary brand source is about 7080 yuan / ton of 11 liter water. Disk pull down, light trading, holders see the trend down rising water, but the willingness to buy has not been boosted, downstream buying is still cautious, only to maintain rigid demand to take goods. On the whole, the transaction today is slightly worse than yesterday.

Zinc price: overnight zinc turns negative to yang, the lower averages turn upward, indicating that Lun zinc has a certain action energy. LME zinc stocks continue to decline, the overseas structure is also stable back, shows that the overseas spot is likely to tighten, but also give Lun zinc a certain support. Yesterday, the LME zinc 0-3 liter discount was $24 per tonne. Overnight, although Shanghai zinc turned to yang to collect yin, but it is still supported by the lower moving average, 5 and 10 averages turn up, indicating that there is a certain support for Shanghai zinc. The overnight increase in positions was dominated by short positions, indicating that weak domestic economic data made market sentiment slightly pessimistic and that action on zinc in Shanghai was limited within the day.

Today is expected: Lun zinc or interval transportation of 2400-2450 US dollars / ton, Shanghai zinc main force 1911 contract or run in 18700-19200 yuan / ton. Domestic zinc rose 10 yuan per ton.

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