Smelter Cost Support Remains, SHFE Zinc Center Slightly Rebounds [SMM Zinc Morning Comment]

Trump: Reports on the reduction of tariff policies are untrue; Canadian Prime Minister Justin Trudeau announced his resignation as leader of the Liberal Party; US Fed Governor Cook: More cautious measures can be taken regarding interest rate cuts; A bomb explosion occurred in central India; Two departments: By 2027, the national new energy utilization rate will not be less than 90%; The National Financial Regulatory Administration issued the "Administrative Measures for Margin Management of Non-Centralized Clearing Derivatives Transactions by Financial Institutions."

Overnight, LME zinc opened at $2,895/mt. At the beginning of the session, LME zinc fluctuated around the daily moving average, briefly dipping to $2,872/mt before quickly rebounding to an intraday high of $2,934/mt. Zinc prices then pulled back below the daily moving average, ultimately closing higher at $2,895/mt, up $3.5/mt or 0.12%. Trading volume decreased to 12,259 lots, and open interest fell by 812 lots to 220,000 lots. Overnight, LME zinc recorded a doji candlestick, with the lower Bollinger Band forming resistance. LME zinc inventory decreased by 1,175 mt to 229,150 mt, down 0.51%. The US dollar index weakened, and although LME zinc's intraday losses were partially recovered, the rebound was limited. Attention should be paid to a series of upcoming economic data releases.

Overnight, the most-traded SHFE zinc 2502 contract opened at 24,670 yuan/mt. After the opening, SHFE zinc briefly rose to a high of 24,760 yuan/mt before trending downward, hitting an intraday low of 24,515 yuan/mt. Subsequently, SHFE zinc's center remained basically stable, fluctuating within a narrow range, and ultimately closed higher at 24,530 yuan/mt, up 40 yuan/mt or 0.16%. Trading volume decreased to 75,522 lots, and open interest fell by 526 lots to 109,000 lots. Overnight, SHFE zinc recorded a bearish candlestick, with support provided by the lower Bollinger Band. According to SMM, zinc inventory as of Monday fell by 2,800 mt WoW to 61,700 mt, remaining at a low level. Despite a significant increase in zinc concentrate TCs, domestic smelters still have cost support, temporarily easing SHFE zinc's downward trend, with its center showing a slight rebound.