Daily Report 040717 2017-07-04
Zinc and Lead

Overnight LME Zinc and Lead fluctuation continued to be strong. LME Zinc closed at $2808; LME Lead closed at $2331. SHEX Zinc and Lead night section slightly increased following overseas section. LME Zinc inventory decreased 2025 tons to 289275 tons. LME Lead inventory decreased 1500 tons to 164150 tons. LME Zinc actuals discount is $3; LME Lead actual discount is $21.25. Totally, Zinc supply side recovery is not obvious. At the same time Zinc ingot output decreased. Zinc ingot structural shortage aggregated, provides the motion for rally. As for operation, global economy continued expand and recovery, providing rally opportunity to industrial raw materials. SHEX Zinc and Leas may continue increase tendency. Maintain long point of view.


Monday copper price was relatively weak. Copper price fluctuated rolling back, and meets bolster at 5-days average line. LME inventory yesterday largely increased 28575 tons to 278000 tons. LME actuals discount enlarged $11.25 to discount $21.25. LME inventory yesterday mainly increased at Brazil, Busan and Liverpool, with 13000 tons, 8000 tons and 7000 tons. Totally, recent LME inventory decrease and weaken US dollar push copper price rally; but yesterday LME inventory largely increase stress on actuals discount. 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.

                                                                      Dong LV (Investment Certificate NO. TZ008452)