The rising LME drove price rise, and SHFE zinc recorded a bullish candlestick last Friday [SMM Zinc Morning Comment]

Last Friday, LME zinc opened at $3,581.5/mt. At the beginning of the session, it moved sideways around the daily moving average. During the European trading session, it dipped to $3,564/mt, then bulls stepped in and pushed the price up to hit a high of $3,616/mt. Near the close, the price pulled back and finally settled up at $3,587.5/mt, up $7.5/mt, or 0.21%. Trading volume decreased to 9,144 lots, while open interest increased by 2,551 lots to 251,000 lots. Last Friday, LME zinc formed a bullish candlestick with a long upper shadow, supported by the moving averages below. Uncertainty in the Middle East continued to disrupt the market, while inventories outside China continued to edge down. The LME Cash-3M backwardation widened to $49.7/mt. LME zinc formed a bullish candlestick, and prices maintained a consolidation pattern.

Last Friday, the most-traded SHFE zinc 2609 contract opened at 24,785 yuan/mt. At the beginning of the session, it dipped to 24,785 yuan/mt, then bulls added positions, lifting the price to drift higher and touch a high of 24,915 yuan/mt. After the highs, bulls took profits and the price gradually pulled back below the daily moving average. Near the end of the session, it stabilized slightly and consolidated, finally settling up at 24,810 yuan/mt, up 25 yuan/mt, or 0.10%. Trading volume increased to 42,647 lots, while open interest increased by 3,089 lots to 111,000 lots. Last Friday, SHFE zinc formed a bullish candlestick with no lower shadow, supported by the moving averages below. Gains in the LME market drove SHFE zinc higher. However, from the end-use consumption perspective, SHFE zinc's upside room is limited, and it continued to consolidate at highs.

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