Persistent Macro Uncertainty Continued to Weigh on SHFE Zinc, Which Remained in the Doldrums [SMM Zinc Morning Comment]

SMM News, March 25:

Overnight, LME zinc opened at $3,095/mt. After the opening, LME zinc fluctuated downward along the daily average line throughout the session, hitting an intraday high of $3,097/mt and a low of $3,027/mt near the close, before finally closing down at $3,038.5/mt, down $64.5/mt, or 2.08%. Trading volume decreased to 11,298 lots, while open interest increased by 1,768 lots to 208,000 lots. Overnight, LME zinc recorded a bearish candlestick, with the KDJ spread continuing to widen. As the Middle East conflict persisted and the US dollar index strengthened again, zinc prices came under pressure and declined somewhat. LME zinc is expected to remain at low levels in the short term.

Overnight, the most-traded SHFE zinc 2605 contract opened at 22,875 yuan/mt. During the night session, SHFE zinc fluctuated above the daily average line, hitting an intraday high of 22,970 yuan/mt and a low of 22,835 yuan/mt near the close, before finally closing down at 22,880 yuan/mt, down 95 yuan/mt, or 0.41%. Trading volume decreased to 40,787 lots, while open interest increased by 301 lots to 102,000 lots. Overnight, SHFE zinc recorded a small bullish candlestick, with the 5-day moving average above forming resistance. Macro uncertainty continued to weigh on zinc prices, and on the fundamentals side, zinc ingot inventory remained at a high level. SHFE zinc moved in the doldrums, with the center in the night session shifting slightly lower.

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