Night Session SHFE Zinc Opened Higher with a Gap, Expected to Stay High [SMM Zinc Morning Comment]

SMM August 7 news:

Overnight, LME zinc opened at $3,750/mt. After opening, LME zinc consolidated, touching a low of $3,717.5/mt during the session. It then rose smoothly, hitting a high of $3,803/mt before pulling back to near the daily average line. It finally closed higher at $3,769.5/mt, up $24/mt, or 0.64%. Trading volume increased to 20,851 lots, and open interest rose by 1,843 lots to 249,000 lots. Overnight, LME zinc formed a bullish candlestick, with the upper Bollinger Band providing support. Recently, LME zinc ingot inventory has been declining, supporting the LME Cash-3M spread to stay high around $60/mt. Bulls added positions, and the center of LME zinc continued to move up. Attention should be paid to the guidance of upcoming non-farm payrolls data.

Overnight, the most-traded SHFE zinc 2609 contract opened at 25,780 yuan/mt. After opening, SHFE zinc consolidated around the daily average line, hitting a high of 25,960 yuan/mt during the session. Near the end of the session, it touched a low of 25,770 yuan/mt, finally closing higher at 25,890 yuan/mt, up 305 yuan/mt, or 1.19%. Trading volume increased to 86,747 lots, and open interest rose by 4,098 lots to 129,000 lots. Overnight, SHFE zinc formed a bullish candlestick, with the upper Bollinger Band providing support. Boosted by the performance of the overseas market, SHFE zinc opened higher with a gap in the night session. On the fundamentals side, the tight ore supply situation remains unchanged, and with the zinc ingot export window open, market export enthusiasm is strong, overall supporting zinc prices to stay high.

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