Daily Report 090517 2017-05-09
Zind and Lead
Last Friday LME Zinc and Lead continued low positon fluctuation. LME Zinc closed at $2591/ton. LME Lead closed at $2166/ton. Shanghai Lead night section strongly fluctuated, and slightly rallied. LME Zinc inventory decreased 1750 tons to 338700 tons. LME Lead inventory increased 3500 tons to 17725 tons. LME Zinc inventory continued decreased; meanwhile domestic Zinc inventory still largely decreased. We consider Zinc price will be stable and rally first; Shanghai Lead will continue low position fluctuation.
Macro Economy
On the domestic side, in April, China's exports were US $ 18.04 billion, increased by 8.00%. Imports were US $ 141.956 billion, increased by 11.90% year-on-year. The trade surplus was US $ 38.048 billion and the previous value was US $ 23.916 billion. Import and export data are less than expected. However, the absolute value of import and export data is not bad, even with a significantly weaker than expected manufacturing PMI data, is not enough to subvert the central bank to tie in with the line will strengthen the financial leverage to implement a slightly tight monetary policy. The recent bond market decline is indeed great, there may be short-term technical rebound, but to reverse the market still need to wait for more heavy economic data began to turn weak.
Monday copper market was weak. Copper price dropped 1.57%. Main reason is China largely decreased copper import lightened market’s pessimistic expect about market copper demand, and suppressed on copper price. LME inventory yesterday decreased 3100 tons to 352000 tons, and ended the previous three continuous days largely increase. LME actuals discount enlarged $2.25 to discount $24.25. Overall, global macro economy is relatively gentle. But tighten capital still stress on copper price. Mid-term keeps short tendency.             
                                                                      Dong LV (Investment Certificate NO. TZ008452)