SHFE Zinc Stopped Rising and Started to Fall, Zinc Prices Fluctuated at Highs [SMM Zinc Morning Comment]

Last Friday, LME zinc opened at $3,540/mt. Early in the session, LME zinc quickly dipped to a low of $3,527/mt before the center shifted up to consolidate around $3,560/mt. During European trading hours, it touched a high of $3,568/mt, after which the center moved steadily lower. By the end of the session, the center had shifted down to $3,540/mt, ultimately closing up at $3,544.5/mt, gaining $2/mt, a rise of 0.06%. Trading volume decreased to 8,007 lots, and open interest decreased by 3,369 lots to 232,000 lots. Last Friday, LME zinc posted a small bullish candlestick, with various moving averages below forming support. On the macro front, there are expectations of easing geopolitical conflicts, but inflationary pressure remains significant. The tug-of-war between longs and shorts kept LME zinc trading within a range.

Last Friday, the most-traded SHFE zinc 2607 contract opened at 24,790 yuan/mt. Early in the session, SHFE zinc quickly touched a high of 24,855 yuan/mt before the center shifted below the daily average line, during which it dipped to a low of 24,695 yuan/mt. The center edged up toward the end of the session, ultimately closing down at 24,740 yuan/mt, falling 40 yuan/mt, a decline of 0.16%. Trading volume decreased to 42,818 lots, and open interest increased by 3,637 lots to 103,000 lots. Last Friday, SHFE zinc stopped rising and started to fall, with the KDJ indicator diverging downward. TCs on the ore side continued to decline, leading to increased profit pressure on smelters. Zinc prices fluctuated at highs, and subsequent attention should be paid to smelter production conditions.

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