LME Zinc upward movement is hindered or will continue to consolidate [SMM Zinc Early Review， July 21]

Overnight, the White House expressed regret that former U.S. Secretary of State Kissinger received more interviews than current officials during his visit to China; the number of Americans filing for unemployment benefits unexpectedly fell last week, raising expectations that the Federal Reserve may continue to raise interest rates; Exclusive: North Korea hacked U.S. IT companies to steal cryptocurrency.

Overnight, LME Zinc opened at US$2,369/ton. At the beginning of the session, LME Zinc fluctuated within a narrow range around the daily average. During European trading hours, bulls poured into LME Zinc to quickly pull up to US$2,428/ton. However, the high support was weak and the price center of gravity of LME Zinc fell back. A "V" reversal was recorded, the center of gravity fell back to 2,380 US dollars / ton at the end of the day, and finally closed at 2376 US dollars / ton, up 14 US dollars / ton, a 0.59% increase, and the trading volume decreased to 7,592 lots. Positions decreased by 2,217 lots to 189,000 lots. LME Zinc recorded a long upper shadow positive column overnight, and the upward movement was blocked. Overnight LME inventories decreased by 75 tons to 90,750 tons, or 0.08% decline, and LME inventories decreased.

Overnight, SHFE Zinc main 2309 contract gapped and opened at 20,200 yuan/ton. At the beginning of the session, LME Zinc quickly rose to 20,305 yuan/ton, and then fell back to the center of gravity around 20,100 yuan/ton, and finally closed at 20,095 yuan/ton. Overnight, SHFE Zinc recorded a negative column, and KDJ opened downward. Recently, the price of zinc has continued to fluctuate. Although there are domestic policy stimulus expectations, the fundamental support is insufficient, the spot transaction is poor, and the inventory is increasing.

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