LME Strength Boosts SHFE, SHFE Zinc Rises in Night Session [SMM Zinc Morning Comment]

SMM June 15 news:

Last Friday, LME zinc opened at $3,526.5/mt, briefly maintaining a fluctuating trend after opening, during which it dipped to $3,511.5/mt, then started to fluctuate upward, reaching a high of $3,590.5/mt near the close, and finally closed up at $3,583/mt, gaining $57.5/mt, with an increase of 1.63%. Trading volume decreased to 14,399 lots, and open interest increased by 3,983 lots to 242,000 lots. Last Friday, LME zinc recorded a bullish candlestick, breaking through multiple daily moving averages. The US and Iran were about to sign a peace agreement, improving macro market sentiment, leading to broad gains in nonferrous metals prices. LME zinc also stopped falling and rebounded, with its center shifting upward.

Last Friday, the most-traded SHFE zinc 2608 contract opened at 24,500 yuan/mt, maintaining fluctuating at highs after opening, briefly dipping to 24,490 yuan/mt at the start, touching a high of 24,690 yuan/mt during the session, and finally closing up at 24,670 yuan/mt, gaining 275 yuan/mt, with an increase of 1.13%. Trading volume increased to 35,747 lots, and open interest rose by 498 lots to 77,808 lots. Last Friday, SHFE zinc recorded a bullish candlestick, with the 40-day moving average above forming resistance. The LME performance boosted SHFE zinc, which continued to rise in the night session. On the fundamentals side, domestic zinc concentrate TCs dropped to negative levels, hitting a record low again. However, consumption was in the off-season, with downstream demand showing weakness. The tug-of-war between longs and shorts in fundamentals kept SHFE zinc hovering at highs.

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