SHFE zinc stopped rising and started to fall overnight, but the center remained at a high level [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,944.0/mt. In early trading, LME zinc drifted lower, and the decline widened after entering the European trading session, accelerating to a low of $3,906.5/mt. During the night session, prices rebounded slightly from the low, but were capped by the daily moving average, and pulled back again at the end of the session, finally closing down at $3,925.5/mt, down $15.0/mt, or 0.38%. Trading volume decreased to 12,208 lots, and open interest increased by 1,337 lots to 263,000 lots. Overnight, LME zinc recorded a small bearish candlestick, with moving averages below providing support, and the MACD bearish candlestick narrowed. Overnight, the US dollar index strengthened, and the US Fed further signaled rate hikes. Bears added positions to pressure prices, and LME zinc fell all the way, but the LME Cash-3M backwardation structure continued, and LME zinc's center remained at a high level.

Overnight, the most-traded SHFE zinc 2611 contract opened at 26,715 yuan/mt. In early trading, bulls added positions to push SHFE zinc sharply higher, touching a high of 26,790 yuan/mt. Subsequently, bears added positions to pressure prices, and prices pulled back under pressure. At the end of the session, prices drifted lower to a low of 26,625 yuan/mt, finally closing down at 26,675 yuan/mt, down 35 yuan/mt, or 0.13%. Trading volume decreased to 47,882 lots, and open interest increased by 708 lots to 136,000 lots. Overnight, SHFE zinc stopped rising and started to fall, with the middle Bollinger Band below providing support. Overnight, social inventory increased again by 2,100 mt. With zinc prices at high levels, spot market trading was weak, and zinc prices encountered resistance above.

Data source statement: Except for public information, all other data are processed by SMM based on public information, market communication, and SMM's internal database models, and are for reference only and do not constitute decision-making advice.