SHFE Zinc Fluctuated, With Attention on Subsequent Consumption Situations [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $2,736/mt. During the morning session, LME zinc fluctuated narrowly around the daily average line, peaking at $2,740/mt at the beginning of the session. It then rapidly declined by midday, fluctuating near $2,695/mt and dipping to a low of $2,679/mt during the period. By the end of the session, LME zinc slightly recovered to near the daily average line, ultimately closing at $2,707/mt, a decrease of $24.5/mt or 0.90%. The trading volume decreased to 9,889 lots, and open interest increased by 2,521 lots to 235,000 lots. Overnight, LME zinc recorded a bearish candlestick with the upper 5-day moving average serving as resistance. LME zinc inventory decreased by 2,100 mt to 234,450 mt, down 0.89%. The market is still awaiting the release of subsequent US inflation data to seek clues on future rate cut extents. The US dollar index fluctuated at a high level, keeping LME zinc at a low level.

Overnight, the most-traded SHFE zinc 2410 contract opened at 22,760 yuan/mt. After the opening, SHFE zinc briefly declined to a low of 22,565 yuan/mt. It then rebounded from the low, reaching a high of 22,820 yuan/mt, and subsequently maintained a fluctuating trend above the daily average line, ultimately closing at 22,725 yuan/mt, a decrease of 65 yuan/mt or 0.29%. The trading volume increased to 103,000 lots, and open interest increased by 1,423 lots to 89,021 lots. Overnight, SHFE zinc recorded a bearish candlestick with the upper 10-day moving average serving as resistance. Macro sentiment remained unchanged, and the weak supply-demand pattern continued on the fundamental side, with downstream zinc consumption still sluggish. SHFE zinc fluctuated, with attention on subsequent domestic consumption improvement.