Macro and Fundamentals Game: Zinc Prices Maintain Sideways Movement [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $2,841/mt. At the beginning of the session, LME zinc fluctuated upward above the daily moving average. During European trading hours, it briefly declined, with its center shifting downward to consolidate near the daily moving average. Entering the night session, LME zinc accelerated upward, reaching a high of $2,876.5/mt by the end of the session and ultimately closing higher at $2,871.5/mt, up by $33/mt or 1.16%. Trading volume decreased to 6,203 lots, and open interest fell by 756 lots to 226,000 lots. Overnight, LME zinc recorded a bullish candlestick, with resistance from the 40-day moving average above and support from the 10-day moving average below. The weak performance of the US dollar overnight provided support for zinc prices, while the exit of bearish funds led to an upward shift in LME zinc's center.

Overnight, the most-traded SHFE zinc 2503 contract opened at 23,830 yuan/mt. At the beginning of the session, SHFE zinc fluctuated around the daily moving average. Subsequently, the exit of bearish funds caused SHFE zinc's center to shift upward above the daily moving average. By the end of the session, it accelerated upward, reaching a high of 23,985 yuan/mt and ultimately closing higher at 23,970 yuan/mt, up by 155 yuan/mt or 0.65%. Trading volume decreased to 37,178 lots, and open interest fell by 844 lots to 74,084 lots. Overnight, SHFE zinc recorded a small bullish candlestick, with the MACD bullish bar expanding. Domestic macro sentiment improved, but with consumption falling short of expectations, social inventory continued to accumulate, suggesting that zinc prices may primarily maintain sideways movement.