Overnight, LME zinc opened at $3,322/mt. Early in the session, LME zinc briefly touched a high of $3,374.5/mt. After entering the European trading session, LME zinc pulled back continuously from its high, fluctuating downward throughout, and probed a low of $3,280/mt near the close, ultimately settling lower at $3,285/mt, down $19/mt, a decline of 0.58%. Trading volume decreased to 121,000 lots, and open interest increased by 2,221 lots to 212,000 lots. Overnight, LME zinc posted a bearish candlestick with a long upper shadow, with various moving averages below providing support. On the macro front, optimistic sentiment over a US-Iran ceasefire drove risk assets higher and the US dollar index touched a one-month low. However, the escalation of the Lebanon conflict, the resumption of hostilities between Iran and Israel, Iranian media reporting that the Strait of Hormuz had been fully closed, combined with the possibility of a US Fed rate hike, pushed LME zinc under pressure.
Overnight, the most-traded SHFE zinc 2605 contract opened at 23,785 yuan/mt. Early in the session, bears reduced positions and SHFE zinc edged higher, touching an intraday high of 23,905 yuan/mt. Subsequently, bulls reduced positions and prices pulled back with fluctuations, continuing to decline during the session and probing a low of 23,710 yuan/mt. Near the close, prices stabilized slightly and rebounded, ultimately settling lower at 23,740 yuan/mt, down 75 yuan/mt, a decline of 0.31%. Trading volume decreased to 30,805 lots, and open interest decreased by 1,406 lots to 77,583 lots. Overnight, SHFE zinc posted a small bearish candlestick, with the 40/60-day moving averages exerting pressure from above and the 5/20-day moving averages providing support from below. Driven lower by LME weakness, SHFE zinc's price center shifted lower last night. On the fundamentals side, domestic supply was tightening but zinc ingot availability remained ample. Attention should be paid to subsequent marginal changes on the macro front.
Data Source Disclaimer: Data other than publicly available information is derived from public information, market communication, and SMM's internal database models, processed by SMM for reference only and does not constitute decision-making advice.
