Macro Sentiment Bullish, LME Zinc Continues to Rise [SMM Zinc Morning Comment]

Overnight, the White House stated that Iran might launch a large-scale attack on Israel this week; Hezbollah withdrew from Beirut, possibly preparing for the worst; Putin's latest statement: expel the enemy from Russian territory; OPEC lowered its global oil demand growth forecast; Chengdu optimized new housing transaction policies: relaxed the first-home recognition standards; multiple institutions responded by stopping long-term bond market-making; over 100 insurance products with a 3.0% guaranteed interest rate will be withdrawn by the end of the month. Overnight, LME zinc opened at $2,736.5/mt, initially fluctuating along the average daily line, briefly dipping to $2,731.5/mt. During European trading hours, shorts reduced positions, and LME zinc quickly surged to a high of $2,783.5/mt. However, due to insufficient upward momentum, it fluctuated downward and finally closed up at $2,749/mt, an increase of $8.5/mt or 0.31%. Trading volume reduced to 10,298 lots, and open interest increased by 671 lots to 222,000 lots. Overnight, LME zinc recorded a bullish candlestick, with LME inventory decreasing by 400 mt to 239,525 mt, a decline of 0.17%. Due to geopolitical impacts, precious metals surged, driving a general rise in non-ferrous metals, and LME zinc's focus shifted upward. It is expected that LME zinc will fluctuate today.

Overnight, the most-traded SHFE zinc 2409 contract opened at 23,090 yuan/mt, initially dipping to 22,945 yuan/mt. Subsequently, longs increased positions, and SHFE zinc fluctuated upward to a high of 23,225 yuan/mt. Later, as funds took profits and exited, SHFE zinc's upward momentum weakened, and its focus fell back to around 23,140 yuan/mt, fluctuating and consolidating. It finally closed up at 23,165 yuan/mt, an increase of 25 yuan/mt or 0.11%. Trading volume reduced to 76,040 lots, and open interest increased by 128 lots to 72,180 lots. Overnight, SHFE zinc recorded a bullish candlestick. With macro sentiment bullish and non-ferrous metals generally rising, together with the continued decrease in domestic inventory, SHFE zinc's focus shifted upward. It is expected that SHFE zinc will mainly fluctuate and consolidate today.