SHFE Zinc Maintained a Fluctuating Trend, with Attention on Subsequent Macro Changes [SMM Zinc Morning Comment]

SMM News, March 26:

Overnight, LME zinc opened at $3,053/mt. After the opening, LME zinc fluctuated downward and hit an intraday low of $3,037.5/mt. It then continued to rebound from lows and touched a high of $3,090.5/mt near the close, finally ending up at $3,081/mt, up $42.5/mt, or 1.4%. Trading volume increased to 11,757 lots, and open interest rose by 1,278 lots to 209,000 lots. Overnight, LME zinc recorded a bullish candlestick, with the lower Bollinger Bands providing support. The situation in the Middle East continued to disturb the market, and news emerged that the US was seeking a ceasefire in the Iran war, but the market mostly remained cautious. Zinc prices maintained fluctuation at lows, with the overall center remaining stable.

Overnight, the most-traded SHFE zinc 2605 contract opened at 23,010 yuan/mt. After the opening, SHFE zinc maintained a fluctuating trend. During the session, SHFE zinc touched a high of 23,075 yuan/mt, then moved downward to a low of 22,965 yuan/mt, and subsequently returned to fluctuate around the daily average line, finally closing up at 23,040 yuan/mt, up 105 yuan/mt, or 0.46%. Trading volume decreased to 37,150 lots, and open interest fell by 1,076 lots to 101,000 lots. Overnight, SHFE zinc recorded a bullish candlestick, with the 5-day moving average below providing support. There were no other macro disturbances for the time being. On the fundamentals side, China zinc concentrate TCs struggled to rise, and China zinc ingot inventory was also gradually destocking. SHFE zinc maintained a fluctuating trend in the night session.

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