LME drives SHFE zinc lower [SMM zinc morning comment]

SMM August 7 news:

Last Friday, LME zinc opened at $3,764/mt. At the beginning of the session, LME zinc briefly rose to a high of $3,798/mt, then bears added positions and LME zinc drifted lower throughout the session, touching a low of $3,697/mt near the close, finally closing down at $3,698/mt, down $71.5/mt, a decline of 1.9%. Trading volume fell to 14,673 lots, and open interest increased by 5,089 lots to 254,000 lots. Last Friday, LME zinc formed a large bearish candlestick. Geopolitical tensions eased, and the non-farm payrolls data unexpectedly turned negative, weakening market expectations for a near-term rate hike by the US Fed. Macro sentiment improved, but LME inventories remained low, and funds took profits, leading LME zinc lower. Today, LME zinc is expected to consolidate at highs.

Last Friday, the most-traded SHFE zinc 2609 contract opened at 25,705 yuan/mt. At the beginning of the session, SHFE zinc briefly rose to a high of 25,730 yuan/mt, then bulls reduced positions and SHFE zinc declined, touching a low of 25,485 yuan/mt near the close, finally closing down at 25,505 yuan/mt, down 440 yuan/mt, a decline of 1.7%. Trading volume decreased to 88,818 lots, and open interest decreased by 5,768 lots to 125,000 lots. Last Friday, SHFE zinc formed a small bearish candlestick. Under the influence of the LME, the center of SHFE zinc shifted lower, and domestic consumption remained weak. However, zinc concentrate TCs remained low, providing support. Today, SHFE zinc is expected to consolidate at highs.

Data source statement: All data other than publicly available information are processed by SMM based on public information, market communication, and internal database models of SMM, and are for reference only, not constituting any decision-making advice.