LME led SHFE zinc daily candlestick to continue rising, it is expected that prices will continue to consolidate at highs [SMM zinc morning comment]

Overnight, LME zinc opened at $3,820.5/mt. At the start of the session, LME zinc drifted lower to a low of $3,797.5/mt. During European trading hours, bulls increased positions and pushed, and LME zinc shot up to a high of $3,851.5/mt. Later in the night session, the futures pulled back at highs, and the price fell back to consolidate around the daily average line. It finally closed at $3,827/mt, up $4.5/mt, an increase of 0.12%. Trading volume decreased to 13,055 lots, while open interest increased by 2,465 lots to 264,000 lots. On August 24, LME zinc inventory increased by 125 mt to 93,250 mt, an increase of 0.13%. Overnight, LME zinc recorded a bullish candlestick, with all moving averages below providing support. Bulls outside China continued to push, while the backwardation structure remained relatively large. Although LME inventory increased, the magnitude was relatively small, and the inventory level remained low. LME zinc continued to rise.

Overnight, the most-traded SHFE zinc 2610 contract opened higher with a gap at 26,000 yuan/mt. At the start of the session, SHFE zinc quickly shot up to a high of 26,160 yuan/mt, then the price pulled back, dipping to 25,990 yuan/mt during the session. Thereafter, the price consolidated repeatedly below the daily average line, finally closing at 26,005 yuan/mt, up 100 yuan/mt, an increase of 0.39%. Trading volume decreased to 73,580 lots, while open interest increased by 4,627 lots to 149,000 lots. Overnight, SHFE zinc recorded a bullish candlestick with a long upper shadow, with short-term moving averages providing support. The overseas market drove the SHFE zinc daily candlestick to continue rising, but under the influence of high prices, spot market performance in China was average. Inventory overall remained at a high level above 260,000 mt, still exerting certain pressure on the upside. It is expected that today it will mainly consolidate at highs.

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