SMM Flash

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2608 contract opened at 24,955 yuan/mt. In early trading, it briefly dipped to a low of 24,835 yuan/mt. Subsequently, as bulls added positions, it rose to a high of 25,035 yuan/mt, before finally closing up at 24,915 yuan/mt, up 120 yuan/mt, or 0.48%. Trading volume decreased to 48,593 lots, and open interest increased by 3,787 lots to 84,775 lots.

[SMM Morning Briefing: US-Iran Tensions Ease, LME Zinc Surges] Overnight, LME zinc opened at $3,526/mt, which was also the intraday low. Subsequently, bears reduced their positions, and LME zinc drifted higher during the night session, touching a high of $3,638/mt before consolidating and finally settling up at $3,616/mt, up $88/mt, or 2.49%. Trading volume increased to 15,870 lots, while open interest decreased by 3,793 lots to 268,000 lots.

On July 9, a fire broke out at an air pollution control facility in the sulphuric acid production area of the No. 1 plant at Young Poong’s Seokpo Smelter in South Korea. According to the company’s preliminary statement, the affected facility is located at the tail end of the roaster off-gas treatment system and is not part of the smelter’s core zinc production equipment. No casualties or leaks of hazardous substances have been reported, while production is currently unaffected. The cause of the fire and the extent of the equipment damage remain subject to a joint investigation by the relevant authorities. Attention should be paid to whether repairs to the facility could subsequently constrain roasting operations. Given that the smelter is already undergoing routine maintenance, the overall impact of the incident on refined zinc output is expected to be relatively limited.