[summary of SMM Morning meeting] the overnight closing of Zinc in Shanghai was dominated by concussion in the short term.

Summary of the morning meeting of zinc in SMM on July 8th

Spot fundamentals

Shanghai: spot prices rebounded slightly, morning market trading is light, the holder is active in shipping, the market transaction of ordinary zinc brands is concentrated on the average price discount of 5 yuan / ton to the SMM net, the market quotation is 70 yuan / ton for the 2007 contract in the morning, and the latter part of the consignors lower the water quotation to 60,065 yuan / ton; entering the second period, the market quotation is relatively stable, and the holder keeps the rising water price to 600.70 yuan / ton for the 2007 contract. The spot price is high, the downstream high-price purchase intention is poor, the high price of the holder is mainly shipping, and the spot rising water performance is relatively weak. (bullish)

Ningbo: the transaction in the Ningbo market was still relatively light yesterday. In the first trading session, Tiefeng Bao was near 90 yuan / ton for the July contract, West Mining newspaper was about 80 yuan / ton for the July contract, and Qilin was around 100 yuan / ton for the July contract, but the center of gravity of zinc price operation moved upward, and the willingness of downstream enterprises to buy was obviously weakened. entering the second period of time, Kirin lowered the water rise to 90 yuan / ton for the July contract. Overall, market turnover remained weak after the downgrade. Trading in the market yesterday was worse than the day before yesterday. (bullish)

Guangdong: the first trading session, the market standing price is still relatively difficult, some holders quote more than the net price down 5 murals 10 yuan, pressure on the transaction price, traders lower the price to receive goods, the market low price transaction is OK, Kirin, Mengzi, Huize quoted for the Shanghai zinc August contract 15 Mustang 20 yuan / ton, Feilong, Tiefeng Shengshui 510 yuan / ton. The second trading session, the current zinc price is still on the high side, downstream as a whole just need to purchase, individual holders hesitate to sell slightly up-price, the market inquiry traders are limited, the overall transaction is weak. Kirin, Mengzi, Huize quoted for the Shanghai zinc contract in August rose 10 murals 20 yuan / ton. (bullish)

Tianjin: yesterday, the concussion of zinc in Shanghai weakened, and the spot market maintained a rising discount price, which was relatively uniform. The ordinary brand Bering News quoted a rise of 140 yuan per ton for the 07 contract, and Hongyi quoted a rise of 160 yuan per ton for the 07 contract. Chi Hong quoted a rise of 130 yuan per ton for the 07 contract, and the high-priced brand Zijin offered a rise of 230 yuan per ton for the July contract, while Baiyin quoted a rise of 130 yuan per ton for the 07 contract. Yunxi Daily quoted 100 yuan / ton of water for 07 contract, Xikuang (delivered) quoted 120 yuan / ton of water for 07 contract, fourth Ring Road (delivered) quoted 120 yuan / ton of water for 07 contract, KZ quoted 70 yuan / ton of water for 07 contract, and Harbin Zinc (including depot) quoted 60 million yuan / ton for 07 contract. Yesterday, zinc prices remained volatile, low-cost brand zinc ingots maintained rising water quotation, under poor delivery, some brands lowered the discount, while high-price Zijin brands raised sticker water shipments due to less spot market volume; downstream, still maintain the need for weak procurement, the overall willingness to receive goods is general, mainly to low-cost brands to receive goods. On the whole, yesterday's turnover was slightly weaker than that of the day before yesterday. (bullish)

Today's forecast zinc price: overnight Lun Zinc received a long shadow line with a long shadow line, which broke through the support of each short moving average below, the daily K center of gravity moved up, and the negative column of MACD index narrowed. Overnight, LME inventory fell by 125t to 122150 t, or 0.1%. The rebound of the overseas epidemic situation is grim, the market risk aversion mood is rising, but the residual temperature of economic stimulus is still superimposed by the ECB confidence index to boost, overnight zinc first suppressed and then rose. Pay attention to macro guidance in the short term. Overnight, Shanghai zinc recorded a small positive column, the length averages of each road below were arranged in multiple positions, and the KDJ index was about to become a golden fork. Under the support of macro optimism, the outer disk upward drive, boost the trend of Shanghai zinc, but the fundamentals are negative, it is expected that short-term Shanghai zinc is still dominated by shock.

Today's forecast: the price of lun zinc is expected to run in the range of US $2030 / ton. It is expected that the contract price of Shanghai Zinc 2008 will run within the range of 16400 Mel 16900 yuan / ton, and it is expected that domestic zinc will drop 30 yuan / ton.