Macro Expectations Improve, Zinc Prices Fluctuate at Highs [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $2,868/mt. At the beginning of the session, LME zinc dipped to $2,854/mt before consolidating around the daily moving average. Subsequently, bears exited the market, and LME zinc fluctuated upward, operating overall above the daily moving average. During the night session, the center shifted upward to around $2,890/mt, and it ultimately closed higher at $2,889.5/mt, up by $18/mt or 0.63%. Trading volume increased to 7,747 lots, while open interest decreased by 2,782 lots to 223,000 lots. Overnight, LME zinc recorded a bullish candlestick, with the daily candlestick center moving upward. International disputes eased, leading to the exit of bearish funds, but the US is expected to continue imposing tariffs, limiting the price increase.

Overnight, the most-traded SHFE zinc 2503 contract opened higher with a gap at 24,010 yuan/mt. SHFE zinc fluctuated rangebound around the daily moving average, with an amplitude of less than 100 yuan/mt. It ultimately closed higher at 23,990 yuan/mt, up by 100 yuan/mt or 0.42%. Trading volume decreased to 34,898 lots, while open interest decreased by 1,049 lots to 70,819 lots. Overnight, SHFE zinc recorded a small bearish candlestick, with support provided by the 20-day moving average below. Domestically, more proactive fiscal and monetary policies are expected to be implemented to support private enterprises in actively participating in the "implementation of major national strategies and the development of security capabilities in key areas" and the "program of large-scale equipment upgrades and consumer goods trade-ins." Market sentiment remained positive, and zinc prices fluctuated at highs.