SHFE zinc maintained range-bound trading with upside room blocked [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,327/mt. During the day, LME zinc fluctuated around the daily average. As the night session approached, LME zinc quickly rose to a high of $3,388/mt before bulls took profits and exited, causing LME zinc to fall, finally closing at $3,307.5/mt, down $0.5/mt or 0.02%. Trading volume increased to 16,398 lots, while open interest decreased by 151 lots to 226,000 lots. LME zinc recorded a four-day losing streak, with the 40-day moving average providing support below. Geopolitical risks in the Middle East increased, and a stronger US dollar pressured non-ferrous metals, leading LME zinc to retreat after a rapid rise, shifting its center lower.

Overnight, the most-traded SHFE zinc 2604 contract opened at 24,890 yuan/mt. At the beginning of the session, SHFE zinc consolidated around the daily average. Subsequently, as bulls reduced their positions, SHFE zinc rapidly declined, shifting its center lower to 24,600 yuan/mt, and finally closed at 24,525 yuan/mt, down 65 yuan/mt or 0.26%. Trading volume decreased to 94,800 lots, and open interest decreased by 198 lots to 95,432 lots. SHFE zinc recorded a bearish candlestick, with the 20-day moving average forming resistance above and the 40-day moving average providing support below. Overnight, SHFE zinc fluctuated within a range. On the fundamentals side, with consumption not yet recovered, social inventory increased by more than 35,000 mt, limiting upside room. Low TCs and high precious metal prices due to geopolitical risks provided bottom support.

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