LME Outperforms SHFE, SHFE Zinc Edges Lower [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,325.5/mt. In the early session, LME zinc fluctuated upward and touched a high of $3,365.5/mt during European trading hours. Subsequently, bears increased their open interest, and the LME zinc center shifted downward, touching a low of $3,314.5/mt during the night session. Bears then reduced their open interest and the center lifted. LME zinc eventually closed higher at $3,340/mt, up $17/mt, a gain of 0.51%. Trading volume increased to 10,950 lots, and open interest decreased by 2,418 lots to 215,000 lots. Overnight, LME zinc recorded a small bullish candlestick. Prospects of new negotiations between the US and Iran weighed on the US dollar, which weakened to its lowest level since February. Non-ferrous metals generally rose. There were expectations of weakening zinc ingot supply outside China, and the LME zinc center shifted upward. LME zinc is expected to trade in a range today.

Overnight, the most-traded SHFE zinc 2605 contract opened at 23,750 yuan/mt. It briefly rose in the early session to touch a high of 23,785 yuan/mt. Subsequently, bears increased their open interest, and SHFE zinc fluctuated downward throughout the session, touching a low of 23,610 yuan/mt. It eventually closed lower at 23,660 yuan/mt, down 130 yuan/mt, a decline of 0.55%. Trading volume decreased to 35,832 lots, and open interest increased by 860 lots to 74,221 lots. Overnight, SHFE zinc recorded a small bearish candlestick. Macro sentiment improved, but China continued to see inventory buildup, and overall consumption fell short of expectations. Fundamentals weighed on zinc prices. SHFE zinc is expected to trade in a range today.

Data source disclaimer: Data other than publicly available information is derived from public information, market communication, and SMM's internal database models, processed by SMM. It is for reference only and does not constitute decision-making advice.