The supply side pattern has not changed, providing support for the upward trend of SHFE zinc [SMM zinc morning comment]

Last Friday, the helicopter carrying the Iranian president made a "hard landing"; Federal Reserve Board member Bowman did not rule out the possibility of raising interest rates; the U.S. Department of Energy planned to purchase another 3 million barrels of oil for war reserves; Israeli wartime cabinet member Gantz threatened to withdraw from the wartime cabinet; the United States and Iran were reported to have held indirect talks; the central bank: established a 300 billion affordable housing re-loan; to lower the threshold for residents to buy houses, the central bank issued three notices in a row; the 30-year ultra-long-term special government bond was officially launched; BYD Electronics was newly added to the Hang Seng Index, and Country Garden Services was removed.

LME zinc opened at $2956/mt last Friday evening, and closed at $3043/mt, an increase of $82/mt or 2.77%. The trading volume decreased to 9674 lots, and open interest decreased 1717 to 241,000 lots. LME zinc stocks fell by 300 mt or 0.12% to 259375 mt. Last Friday, the international market gained confidence in China's future domestic real estate consumption, short sellers left the market, macro sentiment may continue, and LME zinc fluctuated widely.
The most-traded SHFE 2407 zinc contract opened at 24000 yuan/mt overnight and fell to a low of 23900 yuan/mt. It eventually settled at 24190 yuan/mt, up 415 yuan/mt or 1.75%. Trading volume reduced to 114,000 lots, and open interest gained by 5468 lots to 123,000 lots. From a fundamental perspective, supply of ore remains tight, and the zinc concentrate TCs fell a three-year low, providing support for the upward trend of zinc prices. However, the consumer end is weak, and there is a certain upward pressure on SHFE zinc prices.