[brief comment on Zinc in SMM period] the social inventory in China has increased and the fundamental support of zinc in Shanghai has been further weakened.

SMM7 22 July news:

The main 1909 contract of Shanghai zinc opened at 19335 yuan / ton at the beginning of the day, dragging down the short position at the beginning of the day, dragging down the Shanghai zinc line to 19190 yuan / ton to find support, and leaving the market at noon to boost Shanghai zinc to 19250 yuan / ton. However, the 10-day EMA has a strong pressure, and the Shanghai zinc pressure has dropped to 19230 yuan / ton. The operating range is not more than 30 yuan / ton, closing down 19235 yuan / ton, which is 2885 yuan / ton lower than the previous transaction. It fell 1.46 percent, with trading volume down 14472 to 450000 and positions increased by 3912 to 265000. During the day, Shanghai zinc recorded two consecutive negative, the overall return to the 20,40-day moving average channel, supply volume recovery, consumption is still not significantly improved, resulting in domestic Shanghai, Guangdong and Tianjin social inventory recorded to stop the decline and increase, Shanghai zinc fundamentals support further weak, night or pressure Bringdao middle rail operation.