Galvanizing Slag Quotes in North and East China August 18

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2605 contract opened at 23,785 yuan/mt. At the beginning of the session, bears reduced their positions and SHFE zinc edged up, touching the intraday high of 23,905 yuan/mt. Subsequently, bulls reduced their positions, causing prices to fluctuate and pull back. During the session, prices continued to decline, dipping to 23,710 yuan/mt. Towards the end of the session, prices stabilized slightly and rebounded, ultimately closing lower at 23,740 yuan/mt, down 75 yuan/mt or 0.31%.

[SMM Morning Meeting Minutes: Strait of Hormuz Closed Again, LME Zinc Under Pressure] Overnight, the LME zinc contract recorded a long upper shadow bearish candlestick, with various moving averages below providing support. On the macro front, optimistic sentiment over the US-Iran ceasefire drove risk assets higher, and the US dollar index touched a one-month low. However, the escalation of the Israel-Lebanon conflict, the resumption of hostile actions between Iran and Israel, Iranian media reporting that the Strait of Hormuz had been fully closed, combined with the possibility of a US Fed rate hike, put LME zinc under pressure.

As of April 3, the average domestic zinc concentrate TC dropped to 1,350 yuan/mt in metal content, and the imported zinc concentrate TC fell to -$14.5/dmt, with the import market once again entering negative territory. After Chinese New Year, domestic mines gradually resumed production — so why did zinc concentrate TCs decline again in April?