[SMM Zinc Morning Comments] The fundamentals have not changed much, SHFE Zinc prices relatively stable

LME zinc prices closed up $9.5/mt or 0.38% at $2,479.5/mt last evening. The trading volume decreased to 7,144 lots, and open interest added 3,081 lots to 205,000 lots. LME zinc inventory shed by 1,175 mt to 88,825 mt.

The macro performance is flat, and the market is mostly waiting for more data guidance, and the declining inventory provided support for LME zinc prices. The most active SHFE 2309 zinc contract prices closed at 20,820 yuan/mt overnight, up 125 yuan/mt or 0.6%. The trading volume was down to 63,683 lots, and open interest fell 958 lots to 92,035 lots.

The domestic real estate-related policies have provided support for zinc prices. However, in August, the production of refined zinc will remain high and still exert certain pressure. Overall, zinc prices will remain rangebound at the current level.