Non-Ferrous Metals Fell Broadly, Zinc Price Decline Was Limited [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $3,535/mt. At the beginning of the session, LME zinc traded near the daily moving average. During European trading hours, it attempted to break lower, but bulls bought the dip, pushing LME zinc up to $3,565.5/mt. Subsequently, bulls took profits and exited, sending LME zinc lower throughout the session. Toward the end, the center shifted down to around $3,510/mt for consolidation, ultimately closing down at $3,507.5/mt, falling $20.5/mt or 0.58%. Trading volume decreased to 8,593 lots, and open interest decreased by 573 lots to 230,000 lots. Overnight, LME zinc recorded a bearish candlestick, with the daily candlestick center shifting lower. With no clear signal of an end to the Middle East conflict, combined with expectations of monetary tightening policies, the LME zinc center moved lower.

Overnight, the most-traded SHFE zinc 2607 contract opened at 24,700 yuan/mt. During the session, SHFE zinc consolidated around the daily moving average, attempting to break lower to 24,590 yuan/mt at one point, before the center returned to near the daily moving average. It ultimately closed down at 24,715 yuan/mt, falling 120 yuan/mt or 0.48%. Trading volume decreased to 62,919 lots, and open interest decreased by 1,862 lots to 110,000 lots. Overnight, SHFE zinc recorded a small bullish candlestick, with the Bollinger Bands mid-band providing support below, while MACD turned to bearish candlestick. Overnight, macro sentiment weakened, and non-ferrous metals declined broadly, but zinc prices saw relatively limited losses given strong support from the supply side.

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