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SHFE zinc: At the beginning of the week, according to SMM data, domestic inventories in seven regions continued to build up, and downstream consumption remained in the doldrums. However, the positive sentiment in the domestic market had not been fully digested, providing some support for zinc prices, and SHFE zinc maintained a fluctuating trend. Subsequently, from a macro perspective, the market continued to anticipate the results of Sino-US negotiations, while the domestic fundamental situation of strong supply and weak demand persisted. Meanwhile, ferrous metals prices began to rise. Under the influence of multiple factors, SHFE zinc continued to maintain a fluctuating trend. Regarding Sino-US tariffs, the two countries will continue to promote the 90-day extension of the 24% portion of the US reciprocal tariff that has been suspended, as well as China's retaliatory measures. Meanwhile, as the domestic positive sentiment was gradually digested, SHFE zinc fell slightly. Then, due to the unexpected rebound in the US June core PCE inflation, the US dollar index rose continuously, and the center of LME zinc prices fell somewhat, dragging SHFE zinc down rapidly. Subsequently, as SMM social inventories declined slightly and downstream purchasing sentiment recovered, SHFE zinc stopped falling and stabilized, maintaining a fluctuating trend. SMM predicts that domestic refined zinc production may continue to increase in August, and the fluctuating trend of SHFE zinc will remain unchanged under unchanged fundamental conditions. As of 15:00 this Friday, SHFE zinc closed at 22,320 yuan/mt, down 565 yuan/mt or 2.47%.
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