Macro sentiment improves, SHFE zinc rises [SMM zinc morning comment]

Overnight, LME zinc opened at $3,464/mt. Early in the session, it moved sideways along the daily average, dipping to a low of $3,442/mt. As the night session began, bulls added positions, driving LME zinc higher, and it surged to an intraday high of $3,534/mt near the close, finally closing up at $3,525.5/mt, up $57/mt, or 1.64%. Trading volume fell to 14,639 lots, while open interest increased by 4,214 lots to 238,000 lots. Overnight, LME zinc formed a large bullish candlestick, with resistance from the 10- and 20-day moving averages above. The US-Iran situation eased somewhat, and the US dollar index rose initially before declining. Non-ferrous metals broadly gained, and the LME zinc price center shifted higher. It is expected to move sideways today.

Overnight, the most-traded SHFE zinc 2607 contract opened at 24,190 yuan/mt. In early trading, SHFE zinc briefly dipped to an intraday low of 24,020 yuan/mt, after which bears reduced positions, causing SHFE zinc to fluctuate upward and hit an intraday high of 24,305 yuan/mt near the close, finally closing up at 24,265 yuan/mt, up 100 yuan/mt, or 0.41%. Trading volume decreased to 60,028 lots, and open interest fell by 1,210 lots to 79,545 lots. Overnight, SHFE zinc formed a small bullish candlestick with a long lower shadow. Geopolitical tensions eased, market sentiment improved, and capital entered the market. The domestic tight ore and loose metal supply situation remained unchanged, and fundamentals showed no prominent contradictions. Driven by the LME market, the price center of SHFE zinc shifted higher. SHFE zinc is expected to move sideways today.

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