Weaker Dollar, Zinc Prices Posted a Bullish Candlestick [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,272.5/mt. In early trading, LME zinc fluctuated around the daily average line; later, as bears reduced positions and exited, LME zinc rose throughout the session and traded above the daily average line. During the night session, the center moved up to around $3,315/mt, and it finally closed higher at $3,319/mt, up $46.5/mt, a gain of 1.42%. Trading volume decreased to 11,839 lots, and open interest fell by 3,402 lots to 223,000 lots. Overnight, LME zinc turned from a bearish candlestick to in positive territory, with the 60-day moving average below providing support. Overnight, a weaker US dollar lifted broad gains in base metals; meanwhile, affected by the Middle East conflict, the impact on the supply side of aluminum increased, and LME aluminum surged sharply, also driving zinc prices higher.

Overnight, the most-traded SHFE zinc 2604 contract opened at 24,580 yuan/mt. During the session, SHFE zinc fluctuate rangebound around the daily average line, with the up-and-down amplitude not exceeding 200 yuan. It finally closed higher at 24,660 yuan/mt, up 155 yuan/mt, a gain of 0.63%. Trading volume decreased to 62,221 lots, and open interest fell by 3,107 lots to 84,327 lots. Overnight, SHFE zinc posted a small bullish candlestick, with the middle Bollinger Bands forming resistance above. Zinc prices were driven by LME and remained relatively strong; however, in the absence of clear destocking, upside room for zinc prices remained capped.

Data Source Statement: Except for public information, all other data are processed by SMM based on public information and market communication, relying on SMM’s internal database models, for reference only and not constituting decision-making advice.