Bulls Exited; SHFE Zinc Posted a Bald Bearish Candlestick [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,765/mt. In early trading, LME zinc drifted higher, touching $3,790/mt. As European trading began, the center of LME zinc edged lower. During the night session, bears increased open interest to pressure the market, and LME zinc quickly dipped to an intraday low of $3,737/mt. Near the close, bears reduced open interest, pushing LME zinc to rebound slightly. It ultimately closed lower at $3,758/mt, down $4/mt, a decline of 0.11%. Trading volume increased to 10,239 lots, and open interest increased by 3,703 lots to 258,000 lots. Overnight, LME zinc posted a small bearish candlestick; the center of the daily candlestick moved higher, with the upper Bollinger Bands forming resistance above, and the KDJ opening widening downward. Overnight, a weaker US dollar provided bottom support for base metals. The LME zinc backwardation structure was $82.88/mt, inventory continued destocking, and prices fluctuate at highs; focus on the scale of LME ship to delivery warehouse volumes.

Overnight, the SHFE zinc 2610 contract opened at 25,835 yuan/mt. In early trading, bears increased open interest to pressure the market, and SHFE zinc drifted lower, dipping to 25,605 yuan/mt. Subsequently, bears reduced open interest, driving prices to rebound gradually. Late in the session, the decline narrowed, and it ultimately closed lower at 25,770 yuan/mt, down 95 yuan/mt, a decline of 0.37%. Trading volume decreased to 69,911 lots, and open interest increased by 3,755 lots to 148,000 lots. Overnight, SHFE zinc posted a small bearish candlestick with no upper shadow; the center of the daily candlestick moved lower, with various moving averages below providing support. Zinc prices fluctuate at highs, and downstream enterprises were cautious about buying at elevated prices. Social inventory again accumulated to 270,000 mt, capping upside room for zinc prices.

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