[SMM brief Review] Zinc in Shanghai is up nearly 3%. The expected zinc price is easy to rise and difficult to fall in the medium and long term.

SMM7: the Federal Reserve said it would extend its seven emergency loan programs by three months to December 31 to support economic activity during a coronavirus pandemic. Affected by optimistic expectations of monetary easing and the economic stimulus package for US stocks, the recovery in macro sentiment boosted zinc prices. Today, the main 2009 contract of Shanghai zinc rose to 18720 yuan / ton in intraday trading, and as of today, it closed at 18695 yuan / ton, an increase of 2.95 percent.

SMM believes that, from a fundamental point of view, the current galvanizing terminal orders have improved, superimposed die-casting zinc alloy and zinc oxide export orders have improved, driving the removal of social inventory, zinc consumption gradually recovered in the second half of the year, long-term consumption is worth looking forward to. Overall, in the context of macro water release superimposed on the recovery of long-term consumption, in the medium to long term, zinc prices are easy to rise and difficult to fall.

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