Overnight, the World Bank revised the global and US GDP growth forecasts: OPEC maintained the growth rate of demand forecasts for 2024 and 2025; Hamas submitted a response to the ceasefire proposal; Israel stated that Hamas's revision of the ceasefire proposal means rejection of the proposal; French President Macron denied resignation rumors; Xi Jinping emphasized building a globally competitive environment for scientific and technological innovation; nine departments facilitated financing channels for cross-border e-commerce enterprises; the Ministry of Foreign Affairs urged the European Union to stop investigating Chinese electric vehicles.
Overnight, LME zinc opened at $2,845/mt, hitting a high of $2,863/mt during the session. Entering the European trading session, the exit of capital led to a quick drop in LME zinc, shifting lower to fluctuate around $2,790/mt, and hit a low of $2,767/mt during the night session, finally closing at $2,786/mt, down $64.5/mt, with a drop of 2.26%. Trading volume increased to 15,831 lots, and open interest decreased by 2,518 lots to 235,000 lots. LME zinc inventory fell by 600 mt to 259,350 mt, a drop of 0.34%. The continued strengthening of the US dollar inhibited the performance of non-ferrous metals, which generally declined, together with weak domestic demand, LME zinc is expected to perform relatively poorly.
Overnight, the most-traded SHFE zinc contract (2408) opened at 23,455 yuan/mt, briefly hit a high, then with the increase in positions by shorts, SHFE zinc fluctuated downwards, shifting lower to fluctuate around 23,470 yuan/mt, finally closing at 23,445 yuan/mt, down 245 yuan/mt, with a drop of 1.03%. Trading volume increased to 51,376 lots, and open interest increased by 1,815 lots to 77,943 lots. With a bearish macro sentiment, the continued strengthening of the US dollar, and lower-than-expected domestic and overseas PMI data, coupled with no improvement in domestic demand, SHFE zinc is expected to perform relatively poorly.
