Daily Report 230617 2017-06-23

Zinc and Lead

Overnight LME Zinc and Lead continued rally. LME Zinc closed at $2691/ton. LME Lead closed at $2204/ton. Night section Shanghai Zinc and Lead rushed high then slightly rolled back. Holding position continued increase. LME Zinc inventory decreased 975 tons to 304000 tons. LME Lead actuals discount maintained at $19. As for operation, after continuous rally long and short difference aggravated. Considering domestic actuals premium rolled back rapidly, the simulation to Zinc price rally was limited. Shanghai Zinc above space is limited. Secondary Lead smelting enterprises recover production gradually. Shanghai Lead begins to bear stress; long should end loss properly.


Thursday copper market meets bolster at average lines compact area, then meets resistance at the above side. Difference between long and short still exists. LME inventory yesterday decreased 2600 tons to 257000 tons. LME actuals discount narrowed $6 to discount $18.5. Industry side, Zambia expects that because of recent copper mine expansion project, this year copper output will reach 850000 tons, unbiased with previous expectation. Totally, with the news of Free Port and BHP strike news, copper fundamental side begins to focus on supply tighten sign. 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.

                                                                      Dong LV (Investment Certificate NO. TZ008452)