Macro sentiment turns bearish, SHFE zinc dives downward [SMM zinc futures brief comment]

SMM News on July 31: The most-traded SHFE zinc 2509 contract opened at 22,565 yuan/mt. At the beginning of the trading session, bulls reduced their positions, causing SHFE zinc to dive and oscillate near 22,345 yuan/mt. It touched a low of 22,295 yuan/mt at the end of the session, closing down at 22,345 yuan/mt, a drop of 325 yuan/mt or 1.43%. Trading volume increased to 183,000 lots, while open interest decreased by 5,764 lots to 110,000 lots. SHFE zinc recorded a large silver candlestick. According to SMM's communication and understanding, as of Monday this week (July 31), the total zinc ingot inventory across seven locations tracked by SMM was 103,200 mt, an increase of 4,900 mt from July 24 and a decrease of 500 mt from July 28, indicating a slight decline in domestic inventory. With macro optimism fading, zinc returned to trading based on its fundamentals. The zinc market remains in a supply surplus, and it is expected to consolidate in the doldrums during the evening session.