Quotes review:
On the 17th, Shanghai Zinc and Shanghai Aluminum all fell in volume, both hitting new lows during the year. Shanghai zinc main contract opened at 18,200, closing at 17,790, the lowest transaction at 17,750. The daily volume was 788,838 lots, holding 256,016 lots. Shanghai Aluminum’s main contract opened at 16560, closing at 16525, with the lowest closing at 16430. The daily trading volume was 31,540 lots and the holding position was 63,216 lots.
Spot market:
Shanghai spot 0 # Zinc reported yuan / t, compared with the previous trading day down 100 yuan / t, discount 505-preferred 405 yuan / t; 1 # Zinc reported yuan / t, down 100 yuan / t , discount 555 - discount 455 yuan / t. A00 aluminum reported at yuan / t, down 40 yuan / t, discount 60- discounted 40 yuan / t.
Message surface:
1. World Bureau of Metal Statistics: In 2010, the global aluminum market had a surplus of 577,000 tons. The World Bureau of Metal Statistics stated that in 2010, the global aluminum market had an oversupply of 577,000 tons, which corrected the data on the 2010 aluminum supply surplus of 558,000 tons in the global market. According to WBMS, in 2010, global primary aluminum consumption increased to 40.218 million tons, and in 2009 it was 30.573 million tons; the global primary aluminum production was 40.895 million tons, which was higher than the 36.697 million tons in 2009. According to WBMS, the oversupply of 4.9 million tons of primary aluminum during the past three years has contributed to an increase of 3.5 million tons of primary aluminum inventories. However, the agency said that the aluminum supply surplus of 577,000 tons in 2010 was lower than the 1.91 million tons in 2009.
2. World Bureau of Metal Statistics: In 2010, the global zinc market had an oversupply of 402,000 tons. The World Bureau of Metal Statistics stated on March 16 that in 2010, the global zinc market had an oversupply of 402,000 tons. The preliminary data is a surplus of 341,000 tons of zinc in 2010. The World Bureau of Metal Statistics also revised the 2009 global zinc supply surplus from 248,000 tons to 254,000 tons. Zinc mine production totaled 12.12 million tons in 2010, a year-on-year increase of 6.9%. Refined zinc production increased by 12.2% to 12.78 million tons; consumption increased by 11.2% to 12.37 million tons.
Technical side:
Shanghai Zinc closed with the Zhongyin line. The K-line was close to the bald bare foot and the volume was significantly enlarged, indicating that the bears in the day had the upper hand. Judging from the pattern, the market closed at a new low during the year, which means the end of the rebound. The new wave of market decline is expected to start. Shanghai Aluminum’s main contract was also a new low. It failed to confirm yesterday’s suspected “cross-hairline†pattern and the market has not finished yet.
Summary of views:
On the fundamentals, the situation of excess supply and demand has not changed. On the capital front, the top 20 net short positions in the Shanghai aluminum main contract were maintained at about 8,000 lots; the top 20 net short positions in the Shanghai zinc main contract decreased to around 5,000 lots, a significant drop. As a whole, the number of zinc and aluminum net shorts is still at a high level, and capital operations are bearish. Technology shows that the Shanghai zinc rebound is over, and the new wave of decline may start; Shanghai Aluminum has reached a new low and the decline is not over. Operational recommendations: Shanghai zinc empty single holding; Shanghai aluminum empty single holding.
On the 17th, Shanghai Zinc and Shanghai Aluminum all fell in volume, both hitting new lows during the year. Shanghai zinc main contract opened at 18,200, closing at 17,790, the lowest transaction at 17,750. The daily volume was 788,838 lots, holding 256,016 lots. Shanghai Aluminum’s main contract opened at 16560, closing at 16525, with the lowest closing at 16430. The daily trading volume was 31,540 lots and the holding position was 63,216 lots.
Spot market:
Shanghai spot 0 # Zinc reported yuan / t, compared with the previous trading day down 100 yuan / t, discount 505-preferred 405 yuan / t; 1 # Zinc reported yuan / t, down 100 yuan / t , discount 555 - discount 455 yuan / t. A00 aluminum reported at yuan / t, down 40 yuan / t, discount 60- discounted 40 yuan / t.
Message surface:
1. World Bureau of Metal Statistics: In 2010, the global aluminum market had a surplus of 577,000 tons. The World Bureau of Metal Statistics stated that in 2010, the global aluminum market had an oversupply of 577,000 tons, which corrected the data on the 2010 aluminum supply surplus of 558,000 tons in the global market. According to WBMS, in 2010, global primary aluminum consumption increased to 40.218 million tons, and in 2009 it was 30.573 million tons; the global primary aluminum production was 40.895 million tons, which was higher than the 36.697 million tons in 2009. According to WBMS, the oversupply of 4.9 million tons of primary aluminum during the past three years has contributed to an increase of 3.5 million tons of primary aluminum inventories. However, the agency said that the aluminum supply surplus of 577,000 tons in 2010 was lower than the 1.91 million tons in 2009.
2. World Bureau of Metal Statistics: In 2010, the global zinc market had an oversupply of 402,000 tons. The World Bureau of Metal Statistics stated on March 16 that in 2010, the global zinc market had an oversupply of 402,000 tons. The preliminary data is a surplus of 341,000 tons of zinc in 2010. The World Bureau of Metal Statistics also revised the 2009 global zinc supply surplus from 248,000 tons to 254,000 tons. Zinc mine production totaled 12.12 million tons in 2010, a year-on-year increase of 6.9%. Refined zinc production increased by 12.2% to 12.78 million tons; consumption increased by 11.2% to 12.37 million tons.
Technical side:
Shanghai Zinc closed with the Zhongyin line. The K-line was close to the bald bare foot and the volume was significantly enlarged, indicating that the bears in the day had the upper hand. Judging from the pattern, the market closed at a new low during the year, which means the end of the rebound. The new wave of market decline is expected to start. Shanghai Aluminum’s main contract was also a new low. It failed to confirm yesterday’s suspected “cross-hairline†pattern and the market has not finished yet.
Summary of views:
On the fundamentals, the situation of excess supply and demand has not changed. On the capital front, the top 20 net short positions in the Shanghai aluminum main contract were maintained at about 8,000 lots; the top 20 net short positions in the Shanghai zinc main contract decreased to around 5,000 lots, a significant drop. As a whole, the number of zinc and aluminum net shorts is still at a high level, and capital operations are bearish. Technology shows that the Shanghai zinc rebound is over, and the new wave of decline may start; Shanghai Aluminum has reached a new low and the decline is not over. Operational recommendations: Shanghai zinc empty single holding; Shanghai aluminum empty single holding.