Concerns about Economic Recession Ease, LME Zinc Fluctuates Upward [SMM Zinc Morning Comment]

Overnight, LME zinc opened at $2,703/mt. At the beginning of the session, LME zinc briefly dipped to $2,696/mt. Subsequently, with shorts reducing their positions, LME zinc fluctuated upward, reaching a high of $2,790/mt during the night session, and finally closed up at $2,784/mt, an increase of $79/mt or 2.92%. The trading volume decreased to 11,035 lots, and the open interest decreased by 2,490 lots to 217,000 lots. Overnight, LME zinc recorded a bullish candlestick, with LME inventory decreasing by 1,675 mt to 260,600 mt, a decline of 0.64%. U.S. retail sales data far exceeded expectations, alleviating market concerns about an economic recession, leading to a general rise in base metals prices. It is expected that LME zinc prices will fluctuate today.

Overnight, the most-traded SHFE zinc 2410 contract opened at 23,000 yuan/mt. At the beginning of the session, SHFE zinc briefly dipped to 22,920 yuan/mt. Subsequently, with longs increasing their positions, SHFE zinc prices fluctuated upward, reaching a high of 23,255 yuan/mt by the end of the session, and finally closed up at 23,225 yuan/mt, an increase of 385 yuan/mt or 1.69%. The trading volume decreased to 66,416 lots, and the open interest increased by 1,625 lots to 86,492 lots. Overnight, SHFE zinc recorded a bullish candlestick. The macro sentiment was positive, driven by the overseas futures market, coupled with the continued tight domestic mine supply, leading to a rebound in SHFE zinc prices. It is expected that SHFE zinc will mainly fluctuate and consolidate today.