【SMM Flash】Today in Guangdong, the purchasing sentiment of refined zinc stands at 1.85, while selling sentiment registers 2.42.With upward shift in futures price center, downstream buyers show obvious reluctance to chase higher prices. Affected by pricing, market demand turns softer with muted trading activity, and spot premiums/discounts linger at low levels.

[Shanghai Zinc: SHFE Zinc Futures Prices Fluctuate at Highs, Market Transactions Sluggish] Today, the mainstream transaction prices of #0 zinc were concentrated in the range of 24,880-25,005 yuan/mt, Shuangyan mainstream transactions were at 24,990-25,105 yuan/mt, and #1 zinc mainstream transactions were at 24,810-24,935 yuan/mt. In the morning session, the market offered premiums of 20-40 yuan/mt against the SMM average price for cargoes with invoices dated next month, with no quotes against the futures price yet...

[Guangdong: High Prices Suppress Market Demand, Downstream Demand Performance Is Relatively Weak] Guangdong mainstream 0# zinc was transacted at 24,785-24,855 yuan/mt, with mainstream brands quoting discounts of 120-75 yuan/mt against contract 2609 and a discount of 70 yuan/mt against Shanghai spot, and the Shanghai-Guangdong price spread remained...

[Tianjin Zinc: Futures Surge, Market Sluggish] In the Tianjin market, #0 zinc ingot was mainly traded at 24,740-24,910 yuan/mt, Zijin was traded at 24,860-24,970 yuan/mt, #1 zinc ingot was traded around 24,740-24,860 yuan/mt, Zijin was quoted at around parity against the 2600 contract, Huludao Zinc was quoted at 26,215 yuan/mt, #0 zinc ingot was quoted at a discount of 60-120 yuan/mt against the 2609 contract, and the Tianjin market was at a discount of around 100 yuan/mt against the Shanghai market.

[SMM Morning Meeting Summary: US dollar index edges down, LME zinc center rises] Overnight, LME zinc opened at $3,582.5/mt. In early trading, LME zinc moved sideways near the daily average line, then edged down slowly. During the European trading session, it dipped to $3,571.5/mt. Prices at the night session shot up to touch $3,625.5/mt. It edged down slightly in late trading, and finally closed up at $3,609.5/mt, an increase of $36.5/mt or 1.02%. Trading volume increased to 9,333 lots, and open interest decreased by 3,194 lots to 244,000 lots.

As of July 28, LME zinc inventories (including off-warrant stocks) had fallen to 119,600 mt, down by approximately 45,000 mt from mid-June. As overseas inventories continued to decline, the LME zinc market structure shifted from contango to backwardation, with the backwardation widening further. By July 28, the LME zinc cash-to-3M spread had strengthened to US$61.09/mt.

[Zinc Ingot Export Window Opening? A Nearly 20-Year Rare Opportunity Reemerges!] As of July 28, LME zinc inventory (including non-registered warrants) had pulled back to 101,800 mt, down about 20,000 mt from mid-June. Amid continued destocking outside China, the LME zinc market structure shifted from contango to backwardation, and the backwardation structure kept widening. On July 28, the LME zinc Cash-3M spread strengthened to $61.09/mt. In stark contrast, zinc consumption in China remained in the traditional off-season, with SMM-reported social inventory of zinc ingots across seven domestic markets holding steady at a high level of around 260,000 mt. The supply-demand patterns in China and overseas clearly diverged, and the SHFE/LME zinc price ratio weakened all the way. Against this backdrop, the long-dormant export window for Chinese zinc ingots reappeared, and discussions in the market about reverse arbitrage involving "buying SHFE zinc, selling LME zinc" noticeably heated up...

[Guangdong: Downstream Procurement Enthusiasm Insufficient, Premium Rise Relatively Weak] Guangdong mainstream #0 zinc traded at 24,620–24,750 yuan/mt, mainstream brands quoted discounts of 85–75 yuan/mt against the 2609 contract, and a discount of 70 yuan/mt against Shanghai spot zinc. The Shanghai-Guangdong price spread widened...

[Shanghai Zinc: Suppliers Hold Prices Firm, Spot Premiums Continue to Rise] Today, #0 zinc mainstream transaction prices were concentrated at 24,715-24,855 yuan/mt, Shuangyan mainstream transactions were at 24,825-24,965 yuan/mt, and #1 zinc mainstream transactions were at 24,645-24,785 yuan/mt. In early trading, the market saw offers for cargoes with invoices dated next month at a premium of 30-40 yuan/mt against SMM average prices, and no quotes were reported against the futures contract...

[Tianjin Zinc: Contract Rollover Quotes, Premiums Held Steady] #0 zinc ingots in the Tianjin market mainly traded at 24,570-24,770 yuan/mt, Zijin traded at 24,680-24,830 yuan/mt, #1 zinc ingots traded at around 24,540-24,640 yuan/mt, Zijin was quoted at a discount of 0-10 yuan/mt against the 2600 contract, Huzinc was quoted at 26,045 yuan/mt, #0 zinc ingots were quoted at a discount of 60-120 yuan/mt against the 2609 contract, the Tianjin market was quoted at a discount of 100 yuan/mt against the Shanghai market, and the quotes were for the contract rollover.