Macro front still provided support, SHFE zinc fluctuated [SMM Zinc Morning Comment]

Last Friday, LME zinc opened at $3,090/mt. Initially, it fluctuated widely along the daily moving average. Later, with increased short positions, it dipped to $3,067/mt during European trading hours and then continued to fluctuate widely along the daily moving average. With increased long positions, it peaked at $3,111/mt during the night session, then fluctuated downward, and finally closed down at $3,075/mt, a decrease of $19/mt, or 0.61%. Trading volume decreased to 12,027 lots, and open interest increased by 7,525 lots to 248,000 lots. Last Friday, LME zinc recorded a bearish candlestick. LME inventory decreased by 1,800 mt to 253,250 mt, a drop of 0.71%. Due to the US core PCE MoM rate in August hitting its lowest since May, market sentiment weakened, and capital took profits and exited, causing LME zinc to shift downward. LME zinc is expected to fluctuate today.

Last Friday, the most-traded SHFE zinc 2411 contract opened at 24,910 yuan/mt. Initially, with increased long positions, it fluctuated upward, peaking at 25,115 yuan/mt. Later, with increased short positions, it shifted downward to 24,990 yuan/mt for consolidation, finally closing down at 24,985 yuan/mt, a decrease of 5 yuan/mt, or 0.02%. Trading volume decreased to 79,747 lots, and open interest increased by 363 lots to 117,000 lots. Last Friday, SHFE zinc recorded a bullish candlestick. On the macro front, a series of favorable domestic policies still supported SHFE zinc, but actual consumption effects needed time to transmit. SHFE zinc faces upward pressure, and it is expected to fluctuate today.