LME Drives SHFE Zinc to Record a Small Bullish Candlestick [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,518.5/mt, dipped quickly to a low of $3,509.5/mt, then climbed along the daily moving average, hitting a high of $3,577.5/mt during European trading. Entering the night session, bulls took profit, causing the center of LME zinc to shift lower and consolidate around the daily moving average. It finally closed up $33/mt at $3,548/mt, a gain of 0.94%. Trading volume increased to 9,803 lots, while open interest decreased by 1,999 lots to 250,000 lots. Overnight, LME zinc left a bullish candlestick with a long upper shadow, with the 60-day moving average below providing support and the KDJ indicator's gap narrowing. Overnight, the Middle East conflict continued, shipping delays persisted, and storms hit central Chile. Although zinc ore production in Chile is limited, sentiment followed copper prices higher, pushing the center of zinc prices upward.

Overnight, the most-traded SHFE zinc 2609 contract opened at 24,515 yuan/mt. In early trading, SHFE zinc drifted lower to a low of 24,430 yuan/mt, then bulls added positions, pushing the center up to around 24,530 yuan/mt for consolidation, during which it hit a high of 24,560 yuan/mt. It finally closed up 135 yuan/mt at 24,535 yuan/mt, a gain of 0.55%. Trading volume decreased to 38,638 lots, while open interest increased by 165 lots to 96,111 lots. Overnight, SHFE zinc posted a small bullish candlestick, with the 5-day moving average below turning into support and the middle Bollinger Band above exerting resistance. Overnight, driven by LME, the center of SHFE zinc edged up. Ore supply disruptions persisted, but smelters, supported by profits, have not implemented further production cuts. Amid the off-season for consumption, zinc prices face resistance on the upside.

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