Internal and external trends: LME zinc continued its upward trend today. As of 15:49 Beijing time, it was reported at $3051.5 per ton, a daily increase of 0.16%. Shanghai Zinc’s main 2109 contract opened higher and continued to rise. The intraday trading was at 22820-22590 yuan/ton, and it closed at 22,795 yuan/ton in late trading, which was 1.22% higher than the closing price of the previous trading day. The trading volume was 167,000 lots, an increase of 40013 lots per day; The position was 8.8 hands, an increase of 11,622 hands each day. Basis narrowed to 15 yuan/ton; Shanghai zinc price spread from September to October expanded to 25 yuan/ton.
Market focus: The Asian dollar index fluctuated and fell slightly. It is currently trading at 92.892, down 0.10%. (2) The U.S. July CPI surged 5.4% year-on-year, which was the same as the previous value and remained at the high level since 2008. The core CPI growth slowed down compared with June.
Spot market: On August 12, the price of SMM spot 0# zinc was 22,760-22860 yuan/ton, and the average price was 200 yuan/ton higher than the previous trading day. The Yangtze River Nonferrous Metals reported that the disk is higher and the upward adjustment is superimposed, and the downstream receiving intention is reduced. Traders are more cautious in purchasing, mostly long-term transactions, and the transaction is not much different from yesterday.
In terms of inventory: Shanghai zinc warehouse receipts reported 8005 tons, an increase of 203 from the previous trading day. As of August 11, the LME zinc warehouse reported 246,525 tons, a decrease of 1,725tons compared with the previous trading day, which was down for three consecutive days. At the same time, as of the week of August 6, the Shanghai zinc stocks on the Shanghai Futures Exchange reported 39,982 tons, a weekly increase of 3,758 tons to a two-month high.
Main positions: Shanghai Zinc’s main 2109 contract top 20 long positions 58259 hands, short positions 58262 hands, net short positions 3 hands, short Masquerade is greater than long positions.
Market research and judgment: On August 12, the main Shanghai zinc contract 2109 opened higher and continued to rise, setting a two-month high. During the period, the US CPI in July was the same as the previous value, and the growth of core CPI slowed down from June. In the spot market, inventories in the two cities decreased outside and increased inside, and processing fees rose slightly from low levels. The disk is higher and the upward adjustment is superimposed, and the downstream intention to receive goods is reduced. Traders are more cautious in purchasing, mostly long-term transactions, and the transaction is not much different from yesterday. Technically, the Shanghai zinc daily MACD red column expanded, but the hourly KDJ indicator rose moderately. Operationally, it is recommended that Shanghai Zinc’s main bulls make profits and lighten up their positions and wait and see.