Zinc Concentrate TCs Continue to Decline, SHFE Zinc Maintains Fluctuating Trend [SMM Zinc Morning Comment]

SMM May 18 News:

Last Friday, LME zinc opened at $3,589.5/mt, touched a high of $3,590/mt early in the session, then fluctuated downward, hitting an intraday low of $3,510/mt, before hovering at lows around the daily moving average, ultimately closing down at $3,538.5/mt, falling $48.5/mt or 1.35%, with trading volume decreasing to 12,405 lots and open interest increasing by 584 lots to 243,000 lots. Last Friday, LME zinc posted a bearish candlestick, with the 5-day moving average providing support. Expectations for US Fed interest rate hikes heated up, the US dollar index continued to strengthen, non-ferrous metal prices came under pressure, and LME zinc likewise declined from highs.

Last Friday, the most-traded SHFE zinc 2606 contract opened at 24,650 yuan/mt. After the opening, SHFE zinc fluctuated around the moving average. During the session, SHFE zinc touched a high of 24,770 yuan/mt, and near the end of the session, SHFE zinc hit a low of 24,600 yuan/mt before rebounding to near the daily moving average, ultimately closing up at 24,715 yuan/mt, rising 25 yuan/mt or 0.1%, with trading volume decreasing to 46,996 lots and open interest decreasing by 1,943 lots. Last Friday, SHFE zinc posted a bullish candlestick, with the 5-day moving average above forming resistance. Influenced by LME trends, SHFE zinc also saw its center shift lower, but zinc concentrate TCs continued to decline, still providing some support for zinc prices. During the night session, SHFE zinc maintained a fluctuating trend.

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