The optimism of the two sessions continues, SHFE zinc opens higher [SMM zinc morning comment]

Last evening, LME zinc prices opened at $2447/mt and went up to close at $2490.5/mt, up $36.5/mt or 1.49%. Trading volume increased to 12338 lots, and open interest increased 87 lots to 232,000 lots. LME zinc inventory decreased by 250 mt or 0.09% to 274900 mt. South Korea's YP Company cut one-fifth of the output of the Seokpo zinc smelter, and the supply of zinc ingots is expected to decrease. Market optimism has revived, and Powell has stated that he will cut interest rates later this year. The U.S. dollar index has weakened again, and LME zinc has soared.

The most interest-traded SHFE 2404 zinc contract opened at 20870 yuan/mt overnight and fell to 20870 yuan/mt before rallying to a peak of 20940 yuan/mt. It eventually settled at 20905 yuan/mt, up 150 yuan/mt or 0.72%. Trading volume decreased to 40303 lots, and open interest fell by 2090 lots to 97095 lots. Macroeconomic optimism continued during the two sessions, and there were expectations for improvement in the consumption.