The hottest non-ferrous metal zinc price inflectio

Nonferrous Metals: the inflection point of zinc price or the current attention to resource lead-zinc companies

China factor is an important factor for the sharp rise in prices in the international commodity futures market. After 2004, China has changed from a long-term net exporter of zinc to a net importer, and the international zinc price has continued to rise. After October, 2006, as China's Zinc changed from import to export, the international zinc price fell sharply. In April this year, China once again saw a net import of zinc. In the future, if China continues to import net zinc, the international zinc price may rise as a result. Koizumi has begun to use waste materials collected unintentionally for creation since 78 years ago

as oil prices continue to hit new highs, the dollar continues to depreciate. Although U.S. officials have begun to publicly support the strong dollar policy recently, substantive measures have been taken in the United States, and the United States has automatically achieved security protection; The dollar is likely to continue to depreciate until the economy improves. Dollar depreciation will support commodity futures prices

at present, domestic coated plate resources are in short supply, and the price is rising rapidly. The transitional resettlement housing urgently needed for the relocation and resettlement of Wenchuan earthquake requires about 1million tons of color coated plates. Galvanized sheet in steel industry is the main use of refined zinc. The resettlement of victims after the earthquake and the reconstruction of post disaster areas will increase the demand for zinc

the annual output of lead-zinc mines in Chengxian County, Gansu Province accounts for about 20% of the national total. Among them, Changba Lead-zinc Mine of Baiyin company was seriously affected, and it was completely shut down for 20 days. At present, only part of the production has resumed. The P/E ratio of domestic non-ferrous metal listed companies with mineral resources has been in line with that of foreign listed companies, so it is recommended to pay attention

China is once again listed as a net importer of zinc

in recent years, the Chinese factor in the commodity futures market is an important factor to promote the sharp rise in commodity futures prices. The law formed is that the prices of all resource commodities that China wants to increase imports have risen sharply. This is true of coal, oil and agricultural products. After 2004, China has changed from a long-term net exporter of zinc to a net importer, and the international zinc price has continued to rise. After October, 2006, the protection of spring testing machine is 10 points important for us. With the change of China's Zinc import and export status, the international zinc price has fallen sharply

but now the situation may change. According to JohnHughes of Desjardins, 126 elastic sealant for building windows in the first quarter of 2007, China's average monthly net export of zinc was 30000 tons, while the net import of zinc in April this year was 23456 tons. If China's net imports continue in the coming months, zinc prices may rise

the sharp rise in oil prices and the sharp fall in the US dollar may support the price of metal commodity futures

with the rise in oil prices, the US dollar has been depreciating in recent years. Although U.S. officials have begun to publicly support the strong dollar policy recently, oil prices continue to hit new highs

we believe that the dollar is likely to continue to depreciate with the rise in oil prices before the United States takes substantive measures and the U.S. economy improves. Moreover, the Bush administration is running out of time, and it is unlikely to launch substantive measures to promote the continued strengthening of the US dollar, while the depreciation of the US dollar will support commodity futures prices

the resettlement and post disaster reconstruction of Wenchuan earthquake increase the demand for zinc

recently, the domestic steel market is in short supply of coated plate resources, and the supply exceeds the demand. The price rises rapidly. The resettlement of Wenchuan earthquake is an important reason. In the Sichuan earthquake, a total of 15million houses collapsed, and 11million people need to be relocated. The relocation and resettlement work urgently needs 1.5 million transitional resettlement houses, and about 1million tons of painted boards are needed

the sharp increase in the demand for color coated plates has driven the demand for color substrates (Galvanized) in the short term. From the middle and late May to the beginning of June, the prices of coated plates in most parts of China rose sharply. By the end of May, the market quotation of 0.5mm color coated plate produced by Baosteel in Shanghai market was 9000 yuan/ton, and the price of 0.5mm color coated plate produced by Masteel was 8400 yuan/ton, with an increase of about 300 yuan

the cumulative increase in the price of color coated boards in some regions has reached more than 500 to 600 yuan per ton. By the beginning of June, although the increase was slightly reduced, the rise was still obvious

galvanized sheet in steel industry is the main use of refined zinc, accounting for about 60% of zinc consumption. The resettlement and post disaster reconstruction of Wenchuan earthquake will undoubtedly increase the demand for zinc

the earthquake affected the production of domestic lead-zinc mines, and the P/E ratio was similar to that of foreign companies

the production of lead-zinc mines in Chengxian County, Gansu Province was completely interrupted for 20 days due to the impact of the 5.12 earthquake. Cheng county and its surrounding areas are the main lead-zinc mining areas in China, and the local annual output of lead-zinc mines accounts for about 20% of the national total. Among them, Changba lead zinc mine of Baiyin company, which mines 3500 tons of stone per day, was severely affected, with a total shutdown of 20 days. At present, only part of the production has resumed

at present, the domestic zinc price has fallen close to the cost of smelters, and there is limited room for further decline

now the P/E ratio of domestic lead-zinc resource listed companies is similar to that of foreign companies. It is suggested to pay attention to non-ferrous listed companies with mineral resources: Zhongjin Lingnan, western mining, Hongda shares and Chihong Zinc Germanium