SMM Zinc Market Morning Comment (Jul 8)

Last Friday, LME zinc prices were $2,990.5/mt, dipping to $2,986.5/mt, then rising to a high of $3,022/mt, and finally closed at $3,000/mt, up $10/mt, an increase of 0.33%. Trading volume increased to 8,961 lots, and open interest was reduced by 2,201 lots to 233,000 lots. Last Friday, LME zinc recorded a bullish candlestick, with the upper Bollinger Band forming resistance. The US non-farm payrolls for June declined significantly compared to May, and the US unemployment rate for June unexpectedly rose to the highest level in two and a half years. The labour market cooled significantly, further strengthening market confidence in a rate cut, boosting LME zinc to continue running at high levels.

Last Friday, the most-traded 2408 SHFE zinc contract opened at 24,750 yuan/mt, dipping to 24,620 yuan/mt, then rising to a high of 24,765 yuan/mt, and finally closed at 24,675 yuan/mt, up 20 yuan/mt, an increase of 0.08%. Trading volume was reduced to 77,104 lots, and open interest increased by 1,386 lots to 88,928 lots. Last Friday, SHFE zinc recorded a bearish candlestick, with the 10-day moving average providing support below. Domestic and overseas zinc concentrate TCs continued to decline, providing bottom support for zinc prices. However, domestic consumption did not improve, and SHFE zinc remained in high-level fluctuations.