newcandycrush| Shanghai zinc's main 07 contract closed at 24260 yuan/ton: real estate policy efforts to stimulate demand, spot market transactions were weak

News summary

Shanghai zinc's main contract closed up 2newcandycrush.04% reported at 24260 yuan/tonnewcandycrush, the market's premium range for the average price fluctuates, and downstream companies are cautious in purchasing due to high prices, and the transaction volume is weak.

Newsletter text

[The Shanghai zinc market opened strongly higher, and the increase narrowed slightly in the afternoon] In the metal market trading in the Shanghai stock market, zinc prices showed a strong upward trend. Shanghai zinc's main 07 contract closed at 24260 yuan/ton, an increase of 485 yuan compared with the previous trading day, and the increase climbed to 2.04%. Market trading volume was relatively active in electronic trading, with significant increases in positions. The total number of positions increased by 79 lots to 234542 lots.

[Spot import losses intensified, and market demand was supported by macro sentiment.] The value of Shanghai Rumble fell to 7.86, excluding the foreign exchange rate ratio of 1.1, and the spot import loss further increased, reaching-1,920.19 yuan/ton. The demand for spot zinc ingots on the market was affected by high prices, while the underwater transactions of spot listings were sluggish. Despite this, the macro sentiment is still warm. Thanks to the accelerated implementation of special bonds and the continued efforts of real estate policies, the demand side has been stimulated to a certain extent, driving an improvement in commodity market sentiment.

[The activity of the real estate sector drives market sentiment, and the adjustment of the property market brings policy transmission challenges] Although the property market data from January to April shows that the market is still undergoing deep adjustment and it takes time for policies to be transmitted to the investment and sales side, the continued activity of the real estate sector has contributed to the entire commodity market has brought positive emotions. The macro level shows the characteristics of weak reality but strong expectations. The prices of metals such as silver and copper hit new highs, and the strong trend of Shanghai zinc remains unchanged, although demand drag may cause prices to drop to the 10-day moving average.

[Price Range and Trading Volume Dynamics of 0#Zinc] In different links of the market, the mainstream transaction price and trading volume of 0#Zinc fluctuate. For example, the transaction price range of 0#zinc, a mainstream brand in the Ningbo market, is 23,900 - 24,395 yuan/ton, while traders maintain a premium of 75 yuan/ton on the 2406 contract when quoting, and the premium to Shanghai spot is 40 yuan/ton. In the Guangdong market, the mainstream transaction price range of 0#zinc is 23170~24370 yuan/ton, and the brand's quotation for the 2407 contract is between 190 and 200 yuan/ton. The market for 0 #zinc ingots in the Tianjin market shows differences in the quotations of different brands and contracts. The discount for 0 #zinc general on the 2406 contract is in the range of 70 - 100 yuan/ton, while Zijin's discount for the 2406 contract is in the range of 0 - 30 yuan/ton.