Driven by LME, SHFE Zinc Rises [SMM Zinc Morning Comment]

SMM February 9 News:

Last Friday, the LME zinc contract opened at $3,280/mt. At the beginning of the session, LME zinc briefly fluctuated downward, touching a low of $3,262.5/mt. Subsequently, bulls increased their positions, and LME zinc fluctuated upward, rising rapidly during the night session to touch a high of $3,387.5/mt. It finally closed up at $3,383/mt, an increase of $84.5/mt, or 2.56%. The trading volume increased to 9,286 lots, and the open interest rose by 708 lots to 230,000 lots. Last Friday, LME zinc recorded a large bullish candlestick. The US dollar index retreated from highs, and geopolitical uncertainties persist. Low LME inventory provided support for LME zinc, and its price center rose.

Last Friday, the most-traded SHFE zinc 2604 contract opened at 24,575 yuan/mt. At the beginning of the session, SHFE zinc quickly fell to probe a low of 24,450 yuan/mt. Later, bulls increased their positions, and SHFE zinc fluctuated upward, touching a high of 24,660 yuan/mt towards the end of the session. It finally closed up at 24,600 yuan/mt, an increase of 110 yuan/mt, or 0.45%. The trading volume decreased to 230.69 million lots, and the open interest increased by 405 lots to 74,591 lots. Last Friday, SHFE zinc recorded a small bullish candlestick. Overseas macro sentiment remained relatively positive. SHFE zinc saw mixed bullish and bearish factors, primarily following macro sentiment, and its price center continued to shift slightly upward.

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