SMM Zinc Market Morning Comment (Jul 16)

Overnight, LME zinc opened at $2,928.5/mt, quickly dropping to $2,923/mt, then consolidating around $2,950/mt, reaching a high of $2,972/mt during the night session, and finally closed at $2,952/mt, up $3/mt, or 0.1%. Trading volume was reduced to 6,470 lots, and open interest decreased by 3,963 lots to 232,000 lots. Overnight, LME zinc recorded a bullish candlestick, with the 20-day moving average providing support below, but the MACD bullish candlestick narrowed. Overnight, LME inventory continued to decrease by 3,650 mt to 247,475 mt, a drop of 1.45%. The US Fed's dovish remarks further fueled market expectations for a rate cut, causing LME zinc to fluctuate upward.

Overnight, the most-traded SHFE 2409 zinc contract opened at 24,325 yuan/mt, reaching a high of 24,460 yuan/mt, and closed at 24,450 yuan/mt, up 150 yuan/mt, or 0.62%. Trading volume was reduced to 33,499 lots, and open interest increased by 688 lots to 81,567 lots. Overnight, SHFE zinc recorded a bullish candlestick, with the 10-day moving average forming resistance above. In the evening, as macro sentiment improved, SHFE zinc showed strong performance. From a fundamentals perspective, SMM zinc social inventory recorded another decrease to below 200,000 mt, with bullish sentiment boosting the price center of SHFE zinc upward.