[SMM Zinc Morning Meeting Summary: LME Zinc Inventory Continues to Decline, LME Zinc Remains High]: Last Friday, LME zinc opened at $2,819.5/mt. After opening, LME zinc fluctuated rangebound around the daily average line. It rose slightly after entering the futures market, then declined again below the daily average line. After touching a low of $2,804.5/mt, LME zinc rebounded again, approaching a high of $2,834.5/mt near the close. It finally closed up at $2,834/mt, up $18.5/mt or 0.66%, with trading volume decreasing to 8,402 lots...

[SMM Morning Comment on Zinc: LME Continues to Boost Zinc Prices, SHFE Zinc Fluctuates] Last Friday, the most-traded SHFE zinc 2509 contract opened at 22,485 yuan/mt. Early in the session, SHFE zinc dipped to 22,425 yuan/mt, then fluctuated upward, oscillating around 22,570 yuan/mt. During this period, it reached a high of 22,595 yuan/mt, eventually closing up at 22,555 yuan/mt, up 40 yuan/mt or 0.18%. Trading volume decreased to 41,432 lots, while open interest fell by 590 lots to 94,305 lots...

The SMM Imported Zinc Concentrate Index for this week is $82.25/dmt, with a 4.44% WoW increase. The SMM Imported Lead Concentrate average spot TC for this week is $-60/dmt, unchanged WoW.

[Strong domestic macro tailwinds and LME-driven support boost SHFE zinc's bottom support] The most-traded SHFE zinc 2509 contract opened at 22,530 yuan/mt. After the opening, bears reduced their positions, driving SHFE zinc up to a high of 22,565 yuan/mt. Subsequently, bulls reduced their positions, causing SHFE zinc to decline to the vicinity of the daily average line, where it fluctuated rangebound. It eventually closed lower at 22,515 yuan/mt, down 65 yuan/mt or 0.29%. Trading volume decreased to 81,428 lots, and open interest fell by 1,924 lots to 94,895 lots.....

By July 31, the SHFE zinc main contract closed at 22,345 yuan/mt, down 150 yuan/mt (0.67%). Zinc prices bottomed out in July, hitting a monthly low of 21,865 yuan/mt in early month before rebounding to 23,070 yuan/mt by month-end, supported by domestic funding for the program of large-scale equipment upgrades and consumer goods trade-ins, the implement major national strategies and build up security capacity in key areas, and anti-"rat race" competition policies. How will zinc prices perform in August?

[Downstream purchasing enthusiasm remains low, domestic inventory continues to increase] According to communication with SMM, as of Thursday (August 7), the total inventory of zinc ingots in seven locations tracked by SMM was 113,200 mt, an increase of 10,000 mt from July 31 and an increase of 5,900 mt from August 4, with domestic inventory increasing...

[Off-season characteristics remain evident, with zinc oxide operating rates slightly declining this week] This week, the operating rate of zinc oxide enterprises was recorded at 55.68%, down 0.45% WoW. On the raw material side, due to the current end-use demand still being in the off-season and the difficulty in purchasing some raw materials at higher prices, enterprises mostly made just-in-time procurement of raw materials. The inventory remained basically unchanged from last week, with no significant changes observed. On the finished product inventories side, affected by prices, some zinc oxide enterprises experienced a slight inventory buildup of finished products, with an increase in finished product inventories...

[Production Resumptions and Improved Shipments Lead to a Slight Increase in Operating Rates of Die-Casting Zinc Alloy Enterprises] This week, the operating rate of die-casting zinc alloy enterprises reached 48.42%, up 0.19 percentage points MoM. On the raw material side, affected by the continuous rise in zinc prices this week, enterprises faced increased procurement pressure, leading to a slight decrease in raw material inventories compared to last week. On the finished product inventory side, the lower center of zinc prices at the beginning of the week prompted end-users to conduct a small amount of restocking, and the outflows from warehouses of die-casting zinc alloy enterprises improved. However, as prices rose, enterprises faced difficulties in sales, resulting in a slight increase in finished product inventories MoM this week...