SMM Zinc Morning Review on July 17

After the macro sentiment was vented, the price center of gravity of LME Zinc moves down Last Friday, LME Zinc opened at $2,470/ton. At the beginning of the session, LME Zinc oscillated around the daily moving average price line. Near the European trading hour, LME Zinc touched $2,483/ton and then dived downward. The price center of gravity moved down to around $2,440/ton. No matter how strong the bearish sentiment was, the price center of gravity fell again, reaching a low of 2427 US dollars / ton, and finally closed at 2434 US dollars / ton, down 41 US dollars / ton, with 1.66% drop, the trading volume decreased to 6,880 lots, and the open interest increased by 3,467 lots to 191 thousand lots. Last Friday, LME Zinc recorded a negative column, with the 5-day moving average above forming a suppression and the 40-day moving average below providing support. Last Friday, LME inventories decreased by 975 tons to 70,775 tons, a drop of 1.36%. LME inventories recorded a decrease. Last Friday, U.S. inflation fell more than expected, and after interest rate hike expectations weakened, the U.S. index rebounded, and the LME Zinc retreated from its high level and dived downward.

Last Friday, SHFE main 2308 contract opened at 20,500 yuan/ton. SHFE Zinc was weak all the way at the opening. After finishing slightly near the daily moving average price line, the price center of gravity fell rapidly. At the end of the day, it fell to 20,290 yuan/ton, and finally closed at 20,335 yuan / ton, down 230 yuan / ton, or 1.12% drop, the trading volume decreased to 66,911 lots, and the open interest decreased by 2,996 lots to 90,159 lots. Last Friday, SHFE Zinc recorded a negative column, the daily K center of gravity moved down, and the KDJ opening narrowed. Last Friday, SHFE Zinc operated weakly. After the macro sentiment was vented, SHFE Zinc price returned to the fundamentals logics. The spot transactions were poor, social stocks continued to accumulate, the fundamental support was weak, and the impetus for zinc prices to rise was insufficient.

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