Daily Report 210617 2017-06-21

Copper

Tuesday copper market continued fluctuation near average line compact district. LME inventory yesterday decreased 3100 tons to 262000 tons. LME actuals discount enlarged $5.25 to discount $26.5. Industry side, ICSG data shows that March this year global filtered copper market supply shortage is 5000 tons. February the supply surplus is 102000 tons. Totally, copper market fundamental side is relatively weak. With the end of consumption season, the bolster of consumption weakened. Domestic money policy still has no change, financial regulation and relatively tight money policy put stress on copper market. Keep short point of view in mid-term.

 
Zinc and Lead
Overnight LME Zinc and Lead narrowly fluctuated. LME Zinc closed at $2557/ton; LME Lead closed at $2128/ton. Night section Shanghai Zinc and Lead slightly fluctuated following overseas section. LME Zinc inventory decreased 5350 tons to 306575 tons. LME Zinc inventory decreased 600 tons to 174050 tons. LME Zinc actuals discount is $10; LME Lead actuals discount is $22.5. Recently global Zinc inventory is continuously decreased. Periodical supply shortage is serious, may supply strong bolster to Zinc price. Shanghai Zinc has the possibility of rally after stable bottom positon in the short-term. But in the mid-term keeps short point of view. Shanghai Lead continued slightly fluctuation upward tendency. Keep the point of long at low position.
 
Macro Economy
On the domestic side, China's capital market today ushered in a new historical milestone. MSCI decided to include A shares in the MSCI Emerging Markets Index and the MSCI ACWI Global Index since June 2018; plans to initially incorporate 222 A shares, based on a 5% inclusion factor, which weighs about 0.73% of the MSCI Emerging Markets Index.
 
                                                                      Dong LV (Investment Certificate NO. TZ008452)