March 26, 07 by the Shanghai Futures Exchange zinc futures contracts listed as 07 most active and successful year of the new varieties. It is reported that Shanghai has a turnover of zinc in London Metal Exchangebrass ball valve over the old "mini-zinc" futures contracts (size of the contract were five tons / hand). But market trends speaking, in the basic metals zinc is the biggest loser, Donald Rumsfeld zinc year fell 44 percent from 4230 fell to 2,370 US dollars; Shanghai zinc years largest decline 54.6%, fell to 35,654 from 16,186 yuan / ton.

07 Zinc prices have tumbled from the fundamentals perspective, mainly by the combined effect of three factors: 1, the expansion of production capacity in advance of the release of excess zinc supply 2, the demand slow to start, the slowdown in the growth; 3, the United States " The debt "crisis set off the outbreak of financial turmoil, the investment market Chenghuangchengkong.

 
 
07 processing zinc smelting capacity of continued expansion, and formed a pressure of expected excess supply, especially in the large-scale expansion of domestic energy. In fact, the apparent domestic consumption of refined zinc, 05 and 04 substantial growth compared to 12.23% (calculated from data provided Antaike), the increase brass ball valve was slow, or even reduce. 06, 07 years ago, 11 year-on-year increase, respectively, 2.55% and -2.45%. 07 and 11 months before China refined zinc output than 06 sharply from the same period 19.02 percent, far exceeding the growth of apparent consumption, the consumption and supply growth lag start, and the city has been gradually formed zinc excess pressure. Relatively speaking, the rapid growth of refined zinc consumption is slow, has been hot discussion "Russia," has also not outstanding performance, zinc prices were difficult to effectively support demand. Second quarter of the United States and "the debt" crisis erupted financial turmoil set off panic, this has been the lack of support the fund with a zinc prices eased accelerate the trend, fell to 2,370 US dollars / ton (16,186 yuan / ton), followed by factors such as the cost of support Finishing at the bottom of concussion.

From a technical perspective graphics, since 03 of the basic metals into the bull market, 06 begins to come out of finishing high shock pattern. Fallon, since zinc map "head - and-shoulder-top" shape recognition, Donald Rumsfeld zinc entered a rapid drop, are falling continuously. On K-Line map from that formation of the head after the end of 06, January 07 cumulative decline 750 US dollars / ton, the rapid decline started 07 of the curtain. 07, only 2, 4 and 7-to three months, the other fell in all. Among them, from August to December Fallon consecutive zinc eased cumulative drop of 1,175 US dollars / ton, the lowest point hit 2,140 US dollars / ton.

In short, 07 of zinc fell to the tones, See how the lucrative short, the longs fell 06 brass ball valve strong performance.