Macro Sentiment Turns Bearish, LME Zinc Focus Shifts Downward [SMM Zinc Morning Comment]

SMM, Sep 3: Overnight, Biden stated that Netanyahu has not done enough to reach a hostage agreement; Hamas hinted that if the Israeli army attempts a rescue, they will execute the hostages; an explosion occurred in Kabul, the capital of Afghanistan; the UN mediated the Libyan central bank crisis; a Saudi supertanker was attacked in the Red Sea; China's Caixin Manufacturing PMI for August returned to expansion territory; the central bank stated that the standing lending facility rate has played the role of the upper limit of the interest rate corridor; China State Shipbuilding Corporation plans to merge with China Shipbuilding Industry Corporation.
Overnight, LME zinc opened at $2,880.5/mt. At the beginning of the session, LME zinc briefly rose to a high of $2,890/mt, then shorts increased their positions, causing LME zinc to fluctuate downward during the night session, reaching a low near $2,820.5/mt. It then fluctuated and consolidated at $2,835/mt, finally closing down at $2,833.5/mt, a decrease of $66/mt or 2.28%. Trading volume decreased to 8,465 lots, and open interest increased by 18 lots to 220,000 lots. Overnight, LME zinc recorded a bearish candlestick, with LME inventory decreasing by 1,550 mt to 243,225 mt, a drop of 0.63%. The market reduced its expectations for the US Fed's rate cut in September, coupled with manufacturing data exacerbating concerns, causing LME zinc's focus to shift downward. Attention can be paid to tonight's US ISM Manufacturing PMI data.
Overnight, the most-traded SHFE zinc contract 2410 opened at 23,610 yuan/mt. At the beginning of the session, bulls increased their positions, causing SHFE zinc's focus to shift upward and fluctuate near the daily moving average, reaching a high of 23,755 yuan/mt. Later, bulls reduced their positions, causing SHFE zinc's focus to shift downward and fluctuate near 23,680 yuan/mt, reaching a low of 23,600 yuan/mt. It then fluctuated and consolidated along the daily moving average, finally closing up at 23,730 yuan/mt, an increase of 100 yuan/mt or 0.42%. Trading volume decreased to 54,811 lots, and open interest increased by 502 lots to 113,000 lots. Overnight, SHFE zinc recorded a bullish candlestick. China's Caixin Manufacturing PMI for August returned to expansion territory, and there are still certain expectations for the traditional "September-October peak season" consumption, with zinc prices mainly fluctuating and consolidating.