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

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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