Fundamentals unchanged, SHFE zinc consolidates at highs [SMM Zinc Morning Comment]

SMM August 12 news:

Overnight, LME zinc opened at $3,737/mt. It initially drifted lower, hitting a low of $3,708.5/mt, then stopped falling and rebounded, reaching a high of $3,752/mt. Gains narrowed towards the close, and it finally closed at $3,734.5/mt, down $1/mt, or 0.03%. Trading volume decreased to 10,410 lots, while open interest increased by 2,790 lots to 250,000 lots. Overnight, LME zinc formed a small bearish candlestick. The US-Iran situation fluctuated, and the US dollar consolidated, but low LME inventory provided support for LME zinc. LME zinc consolidated at highs. It is expected to mainly consolidate at highs today.

Overnight, the most-traded SHFE zinc 2609 contract opened at 25,700 yuan/mt. It initially shot up to 25,740 yuan/mt, then consolidated and pulled back, hitting a low of 25,560 yuan/mt, and finally closing at 25,590 yuan/mt, down 75 yuan/mt, or 0.29%. Trading volume decreased to 35,618 lots, and open interest decreased by 949 lots to 114,000 lots. Overnight, SHFE zinc formed a small bearish candlestick. Domestic ore remained relatively tight, and destocking of zinc ingot inventory due to exports provided support for SHFE zinc. However, consumption remained weak, putting pressure on the upside. SHFE zinc is expected to consolidate at highs today.

Data source statement: All data other than public information are processed by SMM based on public information, market communication, and SMM's internal database models. For reference only, not constituting investment advice.