China zinc concentrate TCs continue to decline, SHFE zinc night session rises [SMM Zinc Morning Comment]

Published: Aug 3, 2026 08:59

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[SMM Zinc Morning Comment: China’s Zinc Concentrate TCs Continue to Decline, SHFE Zinc Gains in Night Session] The most-traded SHFE zinc 2609 contract opened at 25,010 yuan/mt, after the open it consolidated higher, hitting a high of 25,140 yuan/mt in early trading, then it pulled back to near the daily average line, dipped to a low of 24,950 yuan/mt during the session, afterwards, it consolidated around the daily average line, and eventually closed up at 25,065 yuan/mt..

SMM August 3 news:

Last Friday, LME zinc opened at $3,615/mt and drifted slowly higher after the open, then fell sharply in the afternoon to a low of $3,600/mt. LME zinc then rebounded and consolidated higher, hitting a high of $3,648.5/mt near the close, eventually closing up at $3,640/mt, up $30.5/mt, a gain of 0.84%. Trading volume increased to 13,538 lots, and open interest rose by 1,803 lots to 246,000 lots. Last Friday, LME zinc formed a bullish candlestick, with resistance from the upper Bollinger Band. LME zinc ingot inventory continued to fall below 100,000 mt, and the LME zinc cash-to-three-month backwardation widened to $65.63/mt. Bulls adding positions continued to buoy zinc prices, and LME zinc posted a three-day winning streak, with the overall center moving significantly higher.

Last Friday, the most-traded SHFE zinc 2609 contract opened at 25,010 yuan/mt. After opening, SHFE zinc consolidated higher, hitting a high of 25,140 yuan/mt early in the session, then pulled back to the daily average line, dipping to a low of 24,950 yuan/mt during the session. It then consolidated around the daily average line before closing up at 25,065 yuan/mt, up 175 yuan/mt, a gain of 0.7%. Trading volume fell to 70,468 lots, and open interest rose by 4,444 lots to 115,000 lots. Last Friday, SHFE zinc formed a bullish candlestick, with resistance from the upper Bollinger Band. Domestic zinc concentrates have seen ongoing disruptions recently, while the overall acute supply-demand deficit remained unchanged. Domestic zinc concentrate TCs continued to decline in August, overall supporting SHFE zinc to hold up well. Monitor subsequent zinc ingot export performance.

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Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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