SMM News: macro, the core CPI in the United States rose 0.3% in June, the biggest increase since January 2018. Superimposed Federal Reserve Chairman Powell has sent a signal that monetary policy will be relaxed. Market risk appetite has improved, the Dow Jones Industrial average hit an all-time high, macro bias.
On the supply side, the TC of zinc mine fluctuates at a high level, the supply of zinc ingots is gradually loosened, and the supply of zinc ingots will still be loose in the later stage. Under the influence of the high temperature in the north and the rainy season in the south in June, outdoor work began to be suppressed, and orders for structural parts fell back. In June, the operating rate of galvanized enterprises was 76.4%, down 4.7 percentage points from the previous month and 4.7 percentage points from the same period last year. The performance of the consumer side is weak.
On the supply side, the production of primary lead refineries in Henan, Hunan and Yunnan is stable, and the weekly operating rate remains unchanged. The weekly operating rate of recycled lead smelters in Anhui, Henan and Jiangsu provinces was 50.8%, down 1.7% from the previous month. Demand-side lead battery market off-season situation does not change, coupled with the sharp volatility of lead prices this week, most enterprises to maintain the state of fixed production. The overall consumption of automobile battery market is light, basically in the stage of digesting inventory. The oversupply over demand continued in July.
In summary, it is recommended that zinc 1909 contract range high throw low absorption, test 19000 support. Lead 1908 contracts are short at high prices.
Today's attention: press conference on the operation of the national economy of the Bureau of Statistics. (source: Citic Construction Futures)