Fundamentals show strong supply and weak demand, with SHFE zinc prices declining significantly [SMM zinc futures brief comment]

Published: Jul 1, 2025 15:46

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[Fundamentals: Strong supply and weak demand, SHFE zinc falls significantly]: The most-traded SHFE zinc 2508 contract opened at 22,360 yuan/mt. In early trading, SHFE zinc reached a high of 22,360 yuan/mt, then declined continuously, hitting a low of 22,105 yuan/mt during the session. Subsequently, SHFE zinc rebounded slightly to near the daily average line, closing down at 22,255 yuan/mt, a drop of 110 yuan/mt...

SMM News on July 1:

The most-traded SHFE zinc 2508 contract opened at 22,360 yuan/mt. In early trading, SHFE zinc reached a high of 22,360 yuan/mt, then declined continuously, hitting a low of 22,105 yuan/mt during the session. Subsequently, SHFE zinc rebounded slightly to near the daily average line, closing down at 22,255 yuan/mt, down 110 yuan/mt or 0.49%. Trading volume increased to 127,000 lots, while open interest decreased by 4,403 lots to 134,000 lots. SHFE zinc recorded a bearish candlestick, with the 20-day moving average providing support below. In June, smelter production increased significantly MoM from May. In July, zinc ingot supply is expected to remain strong. The fundamental situation of strong supply and weak demand persists, with SHFE zinc declining significantly during the day.

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