Domestic ore supply has not yet recovered, SHFE zinc’s upward trend is supported

The most-traded SHFE 2404 zinc contract opened at 20745 yuan/mt and fell to 20675 yuan/mt before rallying to a peak of 20815 yuan/mt. It eventually settled at 20800 yuan/mt, up 110 yuan/mt or 0.53%. Trading volume grew to 98543 lots, and open interest decreased by 1864 lots to 99185 lots. The performance of spot consumption is poor. However, the domestic ore supply has not yet recovered, and there is room for decline in TCs, which dampens the enthusiasm of smelters for production. The increase in smelter maintenance provides impetus for the upward trend of SHFE zinc. SHFE zinc is expected to fluctuate between the 30 and 40-day moving averages in the evening.