SHFE Zinc Stopped Rising and Started to Fall, Daily Candlestick Center Slightly Declined [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,559/mt. In early trading, increased long positions drove LME zinc to fluctuate upward, hitting a high of $3,598/mt during European trading hours. Subsequently, longs took profits and exited, causing LME zinc to decline in a stepwise manner, touching a low of $3,523.5/mt towards the end of the session, and finally closing down at $3,528/mt, a decrease of $16.5/mt or 0.47%. Trading volume increased to 11,918 lots, while open interest decreased by 1,610 lots to 231,000 lots. Overnight, LME zinc recorded a bearish candlestick with a long upper shadow, with the upper Bollinger Band forming resistance. LME zinc retreated after rapid rise overnight. On the macro front, the situation in the Middle East tightened again, intensifying inflation concerns, and the exit of longs dragged zinc prices downward.

Overnight, the most-traded SHFE zinc 2607 contract opened at 25,065 yuan/mt. In early trading, SHFE zinc plunged downward, with the center moving below the daily average line. Towards the end of the session, the center declined further, touching a low of 24,745 yuan/mt, and finally closing down at 24,805 yuan/mt, a decrease of 180 yuan/mt or 0.72%. Trading volume decreased to 71,095 lots, while open interest decreased by 1,909 lots to 112,000 lots. Overnight, SHFE zinc stopped rising and started to fall, with the KDJ opening expanding downward. Amid weak consumption, social inventory stayed high, zinc prices retreated after rising, and the center of SHFE zinc sank slightly.

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