The characteristics of the peak consumption season in the downstream market have not yet emerged, and the zinc price maintained a fluctuating trend. [SMM Zinc Morning Comment]

Overnight, US Fed Governor Kugler stated that the current US Fed policy remains restrictive. Trump is considering a "two-step" strategy for his new tariff policy. Vance is expected to visit Greenland on Friday. The US and both Russia and Ukraine have agreed to ensure navigation safety in the Black Sea. The White House announced that the US and Ukraine have agreed to ensure safe navigation in the Black Sea, with the US committed to facilitating prisoner exchanges. The Ministry of Commerce will collaborate with relevant departments to introduce targeted measures for departure tax refunds and increase the number of tax refund stores.

Overnight, LME zinc opened at $2,939.5/mt, hitting a low immediately after opening. Initially, LME zinc fluctuated upward, reaching a high of $2,976/mt. During European trading hours, shorts reduced positions, causing SHFE zinc to fluctuate downward. However, LME zinc quickly rebounded towards the end of the session, partially recovering its losses, and finally closed up at $2,968.5/mt, an increase of $30/mt, or 1.02%. Trading volume rose to 79,506 lots, and open interest increased by 2,093 lots to 226,000. Overnight, LME zinc inventory decreased by 3,425 mt to 150,225 mt, a drop of 2.33%. LME zinc recorded a bullish candlestick with the upper Bollinger Band acting as resistance and the 5-day moving average providing support. The uncertainty surrounding Trump's tariff policy has made the market cautious about future developments. The US dollar index pulled back, and with overseas inventories continuing to decline, LME zinc edged up slightly.

Overnight, the most-traded SHFE zinc 2505 contract opened at 24,155 yuan/mt, immediately hitting a low of 24,080 yuan/mt. Subsequently, longs increased positions, causing SHFE zinc to fluctuate upward. During the tug-of-war between longs and shorts, SHFE zinc attempted to break below the daily moving average, but longs prevailed, allowing SHFE zinc to recover its losses. Later, longs took profits, causing SHFE zinc to pull back slightly. Towards the end of the session, longs increased positions again, pushing SHFE zinc higher to reach a high of 24,220 yuan/mt, and finally closed up at 24,205 yuan/mt, an increase of 80 yuan/mt, or 0.33%. Trading volume decreased to 67,961 lots, and open interest increased by 96 lots to 131,000. Overnight, SHFE zinc recorded a bullish candlestick with the upper Bollinger Band acting as resistance and various moving averages providing support. Domestic TC for ore has been rising recently, and the characteristics of the peak consumption season are not yet evident. However, domestic positive expectations remain, and zinc prices are expected to maintain considerable fluctuations in the short term.