Report Overview - The report is an early morning report on Shanghai zinc futures on July 28, 2025, released by the Investment Consulting Department of Dayue Futures [1] Report Industry Investment Rating - Not mentioned in the report Core Viewpoints - The previous trading day saw Shanghai zinc oscillate and decline, with shrinking trading volume and both long and short positions reducing, more so for the long - side. The market may oscillate and decline in the short - term. Technically, the price is above the long - term moving average with strong support. The short - term KDJ indicator is declining in the overbought area, while the trend indicator shows increasing long - side strength and decreasing short - side strength. It is recommended that Shanghai zinc ZN2509 will oscillate and decline [20] Summary by Relevant Catalogs Fundamental Analysis - In April 2025, global zinc plate production was 1.153 million tons and consumption was 1.1302 million tons, with a surplus of 22,700 tons. From January to April, production was 4.4514 million tons and consumption was 4.5079 million tons, with a shortage of 56,500 tons. From January to April, global zinc ore production was 4.0406 million tons, which is a positive factor [2] Basis Analysis - The spot price is 22,830, and the basis is - 55, indicating a neutral situation [2] Inventory Analysis - On July 25, LME zinc inventory decreased by 1,125 tons to 115,775 tons compared to the previous day, and SHFE zinc inventory warrants increased by 1,349 tons to 13,289 tons compared to the previous day, a neutral situation [2] Futures Market Analysis - On July 25, for different delivery months of zinc futures, prices generally declined. For example, the 2509 contract had a settlement price of 22,980, an opening price of 22,925, a high of 22,935, a low of 22,755, and a closing price of 22,885, with a decline of 95 in one measure and 135 in another [3] Spot Market Analysis - On July 25, in the domestic spot market, the price of zinc concentrate in Chenzhou was 17,400 yuan/ton (down 70 yuan/ton), zinc ingots in Shanghai were 22,830 yuan/ton (down 80 yuan/ton), galvanized sheets in China were 4,089 yuan/ton (up 10 yuan/ton), and galvanized pipes in China were 4,457 yuan/ton (up 19 yuan/ton) [4] Inventory Statistics - From July 14 to July 24, 2025, the total social inventory of zinc ingots in major Chinese markets increased from 74,200 tons to 80,800 tons. Compared with July 17, it increased by 6,600 tons, and compared with July 21, it increased by 5,400 tons [5] Zinc Concentrate Processing Fee - On July 25, the zinc concentrate processing fees in different regions remained relatively stable. For example, in Fift alle, the processing fee for 50% zinc concentrate was 3,700 - 3,900 yuan/metal ton, with an average of 3,800 yuan/metal ton [17] Member Trading and Position Ranking - For the zn2509 contract on July 25, in terms of trading volume, Guotai Junan had the highest volume of 55,468, an increase of 5,329 compared to the previous day. In terms of long positions, CITIC Futures held 24,115, a decrease of 18. In terms of short positions, CITIC Futures held 11,500, an increase of 748 [18]