SHFE Zinc Slightly Recovers [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,310/mt. In the early session, LME zinc fluctuated upward and touched a high of $3,343.5/mt during European trading hours. Subsequently, bears increased their positions, and the LME zinc center shifted downward, touching a low of $3,295/mt during the night session. The center then lifted, and LME zinc eventually closed down at $3,323/mt, falling $12/mt or 0.36%. Trading volume rose to 9,399 lots, and open interest increased by 4,520 lots to 217,000 lots. Overnight, LME zinc posted a small bullish candlestick. The US responded to the collapse of weekend peace talks by blockading Iranian ports, triggering market concerns. LME zinc came under slight pressure and is expected to trade in a range-bound pattern today.

Overnight, the most-traded SHFE zinc 2605 contract opened at 23,500 yuan/mt. It briefly dipped to a low of 23,475 yuan/mt in the early session before bulls increased their positions, driving SHFE zinc rapidly higher to touch a high of 23,740 yuan/mt. The center then edged slightly lower, and SHFE zinc eventually closed up at 23,710 yuan/mt, gaining 135 yuan/mt or 0.57%. Trading volume fell to 39,077 lots, and open interest increased by 288 lots to 74,664 lots. Overnight, SHFE zinc posted a large bullish candlestick. Affected by the US-Iran tensions, China's zinc prices saw a slight recovery from previous trends, but fundamentals continued to weigh on zinc prices. SHFE zinc is expected to trade in a range-bound pattern today.

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