SHFE zinc night session continued to fall, dragged by LME trends [SMM zinc morning comment]

SMM, October 14:

Overnight, LME zinc opened at $3,756.5/mt. After the open, LME zinc consolidated, rose intraday to touch a high of $3,769/mt, then pulled back all the way from highs, dipped to a low of $3,714/mt near the end of the session, and finally closed down at $3,717/mt, down $36/mt or 0.96%. Trading volume decreased to 11,304 lots, and open interest increased by 4,651 lots to 258,000 lots. Overnight, LME zinc formed a bearish candlestick, with the 60-day moving average above acting as resistance. LME zinc ingot inventory increased by 5,550 mt to 138,400 mt, continuing its accumulation trend. As bears added positions, the LME zinc price center continued to shift lower, and it is expected to consolidate in the short term.

Overnight, the most-traded SHFE zinc 2611 contract opened at 25,860 yuan/mt. After the open, SHFE zinc declined all the way, touching a high of 25,950 yuan/mt at the beginning of the session and dipping to a low of 25,625 yuan/mt near the end of the session, finally closing down at 25,645 yuan/mt, down 85 yuan/mt or 0.33%. Trading volume decreased to 47,301 lots, and open interest increased by 673 lots to 98,599 lots. Overnight, SHFE zinc formed a bearish candlestick, with the 5-day moving average above acting as resistance. The decline in the LME dragged down the SHFE, and SHFE zinc extended its downward trend in the night session. In addition, spot consumption on the fundamentals side showed mediocre performance, so SHFE zinc is expected to maintain a fluctuating trend in the short term.

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