Tug-of-war between longs and shorts, zinc prices mainly fluctuate within a range [SMM zinc morning comment]

Overnight, LME zinc opened at $3,930.0/mt. In early trading, LME zinc drifted lower, and after a rapid decline approaching the European trading session, increased long positions pushed LME zinc sharply higher to an intraday high of $3,960.5/mt. During the night session, increased short positions pressured prices, and LME zinc gave back most of its gains, dipping to a low of $3,898/mt near the close before ending lower at $3,911.5/mt, down $14.0/mt, or 0.36%. Trading volume decreased to 10,878 lots, while open interest increased by 372 lots to 263,000 lots. Overnight, LME zinc formed a small bearish candlestick with a long upper shadow, and the daily candlestick center edged slightly lower. However, the MACD bearish bars narrowed, and moving averages below provided support. Although macro expectations turned positive overnight, a stronger US dollar weighed on zinc prices, keeping zinc within a range. Attention remains on macro developments.

Overnight, the most-traded SHFE zinc 2611 contract opened at 26,735 yuan/mt. In early trading, increased long positions briefly pushed SHFE zinc higher to a high of 26,820 yuan/mt. Subsequently, increased short positions pressured prices, and the contract pulled back under pressure, dipping to a low of 26,665 yuan/mt during the night session. Near the close, increased long positions drove a slight rebound, and the contract ended higher at 26,710 yuan/mt, up 130 yuan/mt, or 0.49%. Trading volume decreased to 49,203 lots, while open interest increased by 2,043 lots to 144,000 lots. Overnight, SHFE zinc formed a small bearish candlestick, with the daily candlestick center edging slightly higher, and the middle Bollinger Band below provided support. Recently, zinc fundamentals have seen little significant change, with TCs at low levels. Downstream procurement at high zinc prices is mainly just-in-time, amid a tug-of-war between longs and shorts. Zinc prices are expected to follow macro sentiment and consolidate within a range.

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