Weakening US Dollar and Supply Disruptions Drove Notable Intraday Rally in SHFE Zinc [SMM Zinc Futures Brief]

SMM, May 6:

       The most-traded SHFE zinc 2606 contract opened at 23,850 yuan/mt. In early trading, SHFE zinc dipped to a low of 23,815 yuan/mt before fluctuating upward throughout the session, touching a high of 24,285 yuan/mt near the close, and ultimately settled up at 24,250 yuan/mt, gaining 605 yuan/mt or 2.56%. Trading volume rose to 90,432 lots, while open interest decreased by 2,342 lots to 93,402 lots. SHFE zinc posted a large bullish candlestick, breaking through multiple daily average lines. The resumption of US-Iran negotiations boosted macro sentiment, weakening the US dollar index accordingly. Combined with renewed supply disruptions outside China, SHFE zinc rose notably during the session and is expected to hover at highs in the short term.