[Resumption recovery, operating rates of galvanising producers rise]: This week's operating rate of galvanising producers was 54.56%, up 3.03 percentage points WoW. Raw material side, zinc prices rebounded this week. Downstream players primarily stayed on the sidelines, mainly picking up previously priced zinc ingots, while zinc ingot inventories at galvanising enterprises edged up. The operating rate rebound was mainly because some galvanising plants were closed for the Dragon Boat Festival last week, causing a sharp decline in operations, while this week they all resumed normal production, pushing the rate back up.

[Futures Zinc Prices Consolidate, Spot Transactions Subdued During the Week]: This week, Shanghai spot premiums maintained a fluctuating trend, with the weekly average price up 20 yuan/mt WoW. As of this Friday, ordinary domestic brands were quoted at a discount of 60 yuan/mt against the 2608 contract, while high-priced brand Shuangyan was quoted at a premium of 100 yuan/mt against the 2608 contract..

[SMM Morning Meeting Summary: ADP Data Below Expectations, LME Zinc Maintains Fluctuating Trend] Overnight, LME zinc opened at $3,542/mt. In early trading, the price briefly touched a high of $3,551.5/mt; subsequently, the futures came under pressure and pulled back, dipping to $3,476/mt during the session. Entering the night session, LME zinc rose above the daily average line; however, lacking upward momentum, it then drifted lower, slowly moving lower towards the close, finally closing down at $3,492/mt, down $59.5/mt, a decline of 1.68%. Trading volume decreased to 97,682 lots, while open interest increased by 3,263 lots to 266,000 lots.

[SMM Flash] On July 1, SHFE announced that, with immediate effect, it has approved the "JL" brand zinc ingots (spec: ZN99.995) produced by Nandan Jilang Indium Co., Ltd. for registered delivery. The registered capacity of the zinc ingots is 100,000 mt, at the standard price.

[SMM Morning Meeting Note: LME Zinc Sees a Large Bullish Candlestick, Daily Candlestick Center Rises] Last night, LME zinc recorded a large bullish candlestick, with the lower Bollinger Band providing support. The US dollar index first rose then fell, and inventories outside China continued to decline, supporting LME zinc's center to edge up. Last night, SHFE zinc recorded a bullish candlestick, with the lower Bollinger Band providing support from below and the middle band acting as resistance. Currently, domestic TC is low, and China's zinc ingot production in July is expected to continue to decline, supporting SHFE zinc to rise. However, end-use consumption limits the upside of prices.

As of June 30, the most-traded SHFE zinc contract closed at 24,350 yuan/mt, down 615 yuan/mt for the month, a decline of 2.46%. June saw SHFE zinc retreat from highs, touching a high of 25,355 yuan/mt early in the month and a low of 23,720 yuan/mt at month-end, with the overall price center pulling back. Entering July, the ore tightness situation in China persists; how will zinc prices perform?