[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2510 contract opened at 22,290 yuan/mt. At the beginning of the session, it briefly fell to a low of 22,245 yuan/mt, then fluctuated upward as bears reduced their positions, touching a high of 22,370 yuan/mt toward the end of the session. It then consolidated near the daily moving average, finally closing up at 22,335 yuan/mt, an increase of 25 yuan/mt, or 0.11%. Trading volume decreased to 48,000 lots, while open interest fell by 2,597 lots to 89,406 lots.

[SMM Morning Meeting Summary: Overseas Inventories Continue Destocking, LME Zinc Center Rises] Overnight, the LME zinc contract opened at $2,953/mt. At the beginning of the session, bulls increased their positions, and LME zinc fluctuated upward. However, due to insufficient upward momentum, it then fluctuated downward, touching a low of $2,943.5/mt during the night session. Subsequently, bulls continued to add positions, and LME zinc fluctuated upward throughout, reaching a high of $2,985/mt toward the end of the session. It finally closed up at $2,982/mt, gaining $26/mt, an increase of 0.88%. Trading volume decreased to 11,876 lots, while open interest increased by 13,993 lots to 219,000 lots.

[Domestic Inventory Continues to Increase, but Zinc Prices Expected to Maintain Some Support at the Bottom] The most-traded SHFE zinc 2510 contract opened at 22,315 yuan/mt. In early trading, SHFE zinc fluctuated around the daily average line, reaching a high of 22,365 yuan/mt. Subsequently, bulls reduced their positions, and SHFE zinc fluctuated downward below the daily average line, touching a low of 22,255 yuan/mt. Toward the end of the session, bears reduced their positions, and SHFE zinc recovered some of its losses, finally closing up at 22,310 yuan/mt, an increase of 5 yuan/mt, or 0.02%. Trading volume decreased to 97,830 lots, and open interest decreased by 5,694 lots to 92,003 lots.

[SMM Zinc Morning Comment] Last Friday, the most-traded SHFE zinc 2510 contract opened at 22,345 yuan/mt. At the beginning of the session, SHFE zinc fluctuated, then fell to a low of 22,260 yuan/mt as bulls reduced their positions. It subsequently consolidated around the daily average line and finally closed down at 22,300 yuan/mt, dropping 5 yuan/mt, or 0.02%. Trading volume decreased to 40,122 lots, and open interest fell by 2,005 lots to 95,692 lots.

[SMM Morning Meeting Minutes: US Interest Rate Cut Expectations Heat Up, LME Zinc Surges] Last Friday, the LME zinc contract opened at $2,905.5/mt. At the beginning of the session, it briefly dipped to a low of $2,900.5/mt, then fluctuated upward as bulls increased their positions. During the night session, it touched a high of $2,960/mt and finally closed up at $2,956/mt, gaining $51/mt, a rise of 1.76%. Trading volume increased to 14,507 lots, and open interest rose by 1,254 lots to 205,000.

[SHFE/LME price ratio pulled back to fluctuate around 7.6, zinc ingot import arbitrage window remained closed]: This week, the SHFE/LME price ratio pulled back to fluctuate around 7.6, and the zinc ingot import arbitrage window continued to close. Overseas, US August PPI data fell short of expectations, coupled with a surge in initial jobless claims, both reinforced market expectations for the US Fed to cut interest rates. Meanwhile, LME inventory continued destocking, and LME zinc was strongly supported and continued to rise.

[Interest Rate Cut Expectations Continue to Heat Up, SHFE and LME Zinc Prices' Center Rises] At the beginning of the week, the market continued to digest the US non-farm payrolls data that fell far below expectations, and LME zinc extended last Friday's fluctuating trend; subsequently, affected by ongoing disputes in certain international regions, LME zinc came under pressure and experienced a slight decline...

[Large plants operated normally during the week, operating rates of zinc oxide enterprises rose] The operating rate of zinc oxide producers recorded 57.21% this week, up 2.72 percentage points WoW. Raw material side, zinc prices maintained a fluctuating trend during the week, and most zinc oxide enterprises made just-in-time procurement. Meanwhile, some raw materials were in tight supply in the market, leading to limited availability. Enterprises faced higher procurement costs, and raw material inventory saw a slight decline this week.

[North basically resumed production, operating rates of galvanising producers rose]: This week, the operating rate of galvanizing producers recorded 56.06%, up 5.98 percentage points WoW. On the raw material inventory side, zinc ingots previously priced were gradually picked up and delivered, coupled with the arrival of long-term contracts from large plants, zinc ingot inventory increased slightly.