Ore supply remains tight, SHFE zinc center moves upward [SMM zinc morning comment]

Overnight, the LME zinc contract opened at $3,400/mt. At the beginning of the session, it briefly dipped to $3,398/mt before bulls increased their positions, driving prices to fluctuate upward. During the night session, it touched a high of $3,439/mt and finally closed at $3,420.5/mt, up $20.5/mt (0.6%). Trading volume fell to 9,595 lots, while open interest rose by 1,972 lots to 219,000. The LME zinc contract recorded a small bullish candlestick overnight. Improved prospects for new peace talks between the US and Iran eased market concerns, weakening the US dollar and lifting base metals broadly. The center of LME zinc prices continued to rise, and it is expected to fluctuate at highs today.

Overnight, the most-traded SHFE zinc 2605 contract opened at 23,960 yuan/mt. Early in the session, bears reduced their positions, briefly pushing prices up to 24,070 yuan/mt. However, lacking upward momentum, SHFE zinc fluctuated downward, probing a low of 23,915 yuan/mt before closing at 23,935 yuan/mt, up 30 yuan/mt (0.13%). Trading volume dropped to 33,598 lots, while open interest fell by 3,378 lots to 63,962. The contract recorded a small bearish candlestick with a long upper shadow overnight. Macro sentiment continued to improve, while ore supply in China remained relatively tight. The price center of SHFE zinc edged higher, and it is expected to fluctuate at highs today.

Data source disclaimer: Except for publicly available information, other data are derived from public information, market communication, and SMM's internal database model, processed by SMM for reference only and not constituting investment advice.