US Fed's Dovish Speech Spurs Significant Rise in LME Zinc [SMM Zinc Morning Comment]

Last Friday, LME zinc opened at an intraday low of $2,857.5/mt. At the beginning of the session, LME zinc fluctuated around the daily moving average due to a tug-of-war between bulls and bears. Subsequently, increased long positions pushed LME zinc to rise steadily, with the focus moving above the daily moving average. During the night session, LME zinc briefly dipped to the daily moving average but continued its upward trend, peaking at $2,920/mt by the end of the session and closing at $2,918/mt, up $60.5/mt or 2.12%. Trading volume increased to 11,559 lots, and open interest rose by 3,785 lots to 215,000 lots. Last Friday, LME zinc recorded a bullish candlestick with support from various moving averages below. LME inventory decreased by 800 mt to 256,050 mt, a drop of 0.31%. Last Friday, the US Fed's dovish speech led to a decline in the US dollar, causing a broad rise in non-ferrous metals, with LME zinc reaching a nearly six-week high.

Last Friday, the most-traded SHFE zinc 2410 contract opened at 24,010 yuan/mt. At the beginning of the session, SHFE zinc briefly dipped to a low of 23,870 yuan/mt. Subsequently, in the tug-of-war between bulls and bears, the bulls prevailed, pushing the focus up to 24,010 yuan/mt, with a peak of 24,100 yuan/mt during the session. It finally closed at 24,075 yuan/mt, up 75 yuan/mt or 0.31%. Trading volume decreased to 115,000 lots, and open interest increased by 959 lots to 127,000 lots. Last Friday, SHFE zinc recorded four consecutive bullish candlesticks, with the daily K-line focus moving up. Improved macro sentiment, combined with expectations of joint production cuts by zinc smelters, led to high bullish sentiment, driving zinc prices upward.