[SMM brief comment] Shanghai zinc rush back down supply volume expected superposition of economic data expected zinc price is weak and difficult to change for the time being.

SMM10 14: since the return of the National Day holiday, Shanghai zinc prices showed an upward trend, once as high as 19175 yuan / ton, as of the end of the day, Shanghai zinc 1912 contract reported 18925 yuan / ton, an increase of 0.24%.

SMM believes that the rise in zinc prices after the festival was mainly boosted by expectations of a better trade war between China and the United States and the closure of the zinc smelter at the RoshPinah mining base by the Skorpion Zinc International subsidiary of Vedanta Zinc. In terms of fundamentals, the decline of zinc social inventory in the three places further verifies the market expectations of post-festival inventory removal, indicating that downstream consumption is better and returns after the festival, environmental protection and production restrictions are over, and other enterprises such as galvanizing resume production. Downstream consumption tends to pick up and is sustainable, supporting zinc prices. However, supply volume is still expected to add to the economic and financial data to be released this week is expected to be weak, the market short expectations are difficult to change for the time being.

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