LME zinc price shifted upward and outperformed SHFE zinc [SMM Zinc Morning Comment]

Overnight, the US Fed did not rule out the possibility of an interest rate hike; ECB officials expect two to three rate cuts this year; Saudi Arabia is expected to lower the price of crude oil sold to Asia in July; Israel is waiting for Hamas to respond to a new Gaza hostage negotiation proposal within 24 hours; the National Financial Regulatory Administration stated that it will meet the reasonable financing needs of real estate projects; Guangzhou and Shenzhen loosened real estate policies, lowering the minimum down payment ratio for first-time homebuyers.

Overnight, LME zinc opened at $3,071.5/mt, initially fluctuated around the average daily line, then rose to $3,095/mt during the European session, and finally surged to a high of $3,133/mt during the night session, before slightly retreating and closing at $3,119/mt, up $60.5/mt, or 1.98%. Trading volume increased to 6,982 lots, and open interest increased by 682 lots to 237,000 lots.

Overnight, LME inventory decreased by 25 tons to 257,200 tons, a decline of 0.01%. Overnight, the most-traded SHFE zinc contract opened at ¥24,930/mt, surged to ¥25,185/mt at the beginning of the session, then retreated to ¥24,850/mt, and finally closed at ¥24,880/mt, down ¥10/mt, or 0.04%. Trading volume decreased to 128,000 lots, and open interest increased by 1,571 lots to 120,000 lots. The weak consumption is putting pressure on zinc prices, making it difficult for SHFE zinc to gain upward momentum.