The negative factors do not change, the downward trend of zinc prices continues

Logic: LME zinc stocks continued to increase, and LME further positions are expected to remain strong in the later period, and LME stock support has weakened.

Domestically, the high smelting profits will be maintained. The rhythm of domestic smelting and resumption of production will further advance in May and June, and the domestic supply bottleneck will break through before the middle of the year. Domestic car sales continued to shrink in April, while zinc consumption in May and June faced seasonal downward pressure.

Therefore, in May, the domestic zinc ingot social stocks will be slowed down or slowed down, and may be transferred from the destocking to the depot. On the macro level, Sino-US trade policy concerns have not diminished.

Overall, the medium-term zinc price weakness is difficult to change, and will continue to be under pressure, while the short-term Shanghai zinc futures will continue to be weak.